10 Key Points That Should Not Be Overlooked In Settlement

The recognition conditions of taxable income of enterprise income tax are different from those of accounting recognition of income.

The recognition conditions of taxable income of enterprise income tax are different from those of accounting recognition of income.

Take the sale of goods as an example, the notice of the State Administration of Taxation on certain issues concerning the recognition of enterprise income tax income ([2008]875) stipulates that four taxable conditions should be met at the same time, and the taxable income of the income tax can be recognized. Besides accounting for the four conditions stipulated in the tax law, the accountant also needs to meet the condition that "whether the economic interest is likely to flow into the enterprise". Obviously, the tax law confirms that the conditions for taxable income are relatively loose, so that the income has not been recognized in accounting, and the situation of calculating enterprise income tax needs to be increased when the enterprise income tax is settled.

The difference between taxable income of turnover tax and taxable income of enterprise income tax

Generally speaking, the day when the enterprise invoices the invoice, it is the time when the tax payment duty occurs. Is it necessary to confirm the taxable income of enterprise income tax if the invoice is issued?

Because there are different provisions on the time of tax payment for different taxes, there are differences between them.

According to the relevant regulations of the Provisional Regulations on value added tax, if the invoice is first issued, the time when the duty of value added tax shall be invoiced on the day of invoicing.

The article [2008]875 of the national tax letter has made different provisions on the sale of goods and services and special sales, mainly based on whether the ownership of goods is pferred or whether the labor service is provided or not.

Therefore, although the business operation of the enterprise has invoiced, but has not yet sold or provided labor services, and has not met the conditions for the confirmation of the enterprise income tax, it will form the situation that the turnover tax should be paid but not included in the taxable income of the enterprise income tax. Taxpayers should conduct proper accounting treatment and tax treatment.

Easily overlooked as sales taxable income

The following points should be noted in mastering corporate income tax as sales.

Pay attention to the distinction between value added tax and sales income and enterprise income tax.

Corporate income tax is regarded as sales. The emphasis is whether the ownership of assets is changed. VAT is not only a change in ownership, but also a p county (city) "pfer library" and goods for non value added tax.

The enterprise income tax is regarded as the fair value when it is sold.

The third section of the Circular of the State Administration of Taxation on the disposition of assets income tax by enterprises (the tax Letter No. 2008] No. 828) stipulates that when an enterprise has second of the provisions of this notice, it belongs to the assets owned by the enterprise, and the sales income should be determined according to the external selling price of the same assets in the same period.

The "enterprise disposal of purchased assets" determines the sales revenue at the time of purchase, which means that the assets disposed of by the enterprise are not for sale purposes, but are of the nature of expenses for the replacement of employee benefits, and generally disposed of in a tax year after purchase.

It is only a matter of tax treatment if it is deemed to be a sales business.

As a sales business, it is often not reflected as income in accounting process. It is only required to be declared as taxable income according to the provisions of the tax law. Therefore, when completing the annual tax return, it is necessary to fill in the fifteenth line of income statement and the fourteenth detailed list of the detailed cost list of schedule two, showing tax treatment.

Tax treatment for unpaid and bad debts receivable

Accounts payable for long term.

The payables that enterprises really can not pay should be taken as other income, and the enterprise income tax shall be included in the total income of the enterprise.

At the same time, the above amount is allowed to be deducted before the actual payment in the following year.

Uncollectible long-term receivables.

The fourth Circular of the Ministry of Finance and the State Administration of Taxation on the pre Tax Deduction Policy for assets losses (fiscal and tax [2009]57 number) stipulates that "if the debtor has not overpaid for more than 3 years, and there is conclusive evidence that it has failed to repay debts, it can be deducted as the loss of bad debts when calculating the taxable amount."

Notice No. 25 provides that accounts receivable overdue for more than three years are dealt with as losses in accounting and may be regarded as loss of bad debts, but the situation should be explained and special reports should be issued.

"More than three years of unreceivable receivables" and "more than three years of outstanding payables" are often corresponding. If the receivables have already been accounted for according to the loss of bad debts in the accounting treatment and declared before tax deduction, the corresponding payables should be included as "non operating income" in the amount of taxable income.

The notice of the State Administration of Taxation on certain tax handling issues concerning the taxable income of enterprise income tax (Bulletin No. fifteenth of the State Administration of Taxation 2012, hereinafter referred to as "15 announcement") has relaxed the base of pre tax deduction for the salaries and salaries of the five categories of personnel, such as employing seasonal workers, temporary workers, interns, returning retirees and accepting external labor dispatch, and at the same time, expanding the calculation base for the deduction of the employees' welfare benefits before tax.

The deduction quota is calculated after calculating the total wage and payroll after the total increase. Secondly, for state-owned enterprises, the salary and salary portion of the five categories of personnel that are included in the "labor cost" or other subjects in the accounting process should also be included in the payroll payroll account of the twenty-second schedule of the three schedule of the declaration form. According to the Circular of the State Administration of Taxation on the deduction of wages and salaries of employees and the welfare of employees, second of the enterprises belonging to state-owned enterprises, their salaries and salaries shall not exceed the limited amount granted by the relevant government departments. The excess part shall not be included in the total amount of wages and salaries of enterprises, nor shall they be deducted from the calculation of the taxable income of enterprises when the amount of taxable income is deducted from the five part of the enterprise. The staff and workers' welfare expenses of the above five categories of personnel should also be added to the total staff welfare benefits.

Different fees and commission expenses apply to different policies.

Insurance, agency, telecommunications and other industries have different calculation of pre tax deduction limits for commission and commission expenses.

In the insurance industry, property insurance and personal insurance are calculated according to the sum of 15% and 10% of the total premium income after deduction of the surrender fee, respectively, and the quota before tax deduction is calculated. Other enterprises calculate the limit according to the 5% of the income received from the service agreement or the contract confirmed by the intermediary service agencies or individuals with no legal qualifications, excluding the parties to the paction and their employees, agents and representatives.

The business cost (including commission and commission expenses) incurred by enterprises (such as securities, futures, insurance agents, etc.) who are engaged in agency services and whose main business income is fees and commissions shall be deducted before the enterprise income tax.

In the process of developing customers and expanding business, such as entrusting telephone sales card, telephone recharge card, etc., telecom enterprises need to pay commission and commission to brokers and agents. The actual Commission and commission expenses incurred will not exceed 5% of the total income of the company, and are allowed to be deducted before the enterprise income tax.

No matter how the pre tax deduction limit is stipulated, it is necessary to collect and calculate the enterprise income tax on the basis of obtaining legally valid certificates.

The enterprise obtains the certificate of annual expenditure and the tax treatment of the outstanding deductible expenses in the previous year.

Influenced by the assumption of the accounting period, cross year costs are more common in enterprises.

According to the tax law, enterprises can not get the valid certificate of cost and cost in time because of the related costs and expenses actually incurred in the year. If the enterprise pays the quarterly income tax in advance, it can calculate the book amount temporarily. However, when the settlement is paid, the effective certificate to provide the cost and cost should be supplemented.

Therefore, an enterprise should carry out the accounting treatment in accordance with the accrual basis principle in the year when the expenses are paid, and the time for obtaining the original vouchers across the year can be deducted before tax as long as it does not exceed the time required for the settlement of the enterprise's settlement.

The amount of taxable income should be increased when the original certificate is not obtained when the enterprise income tax is declared at the end of May next year.

Assuming that the original voucher is obtained at a certain time after the completion of the settlement, can the tax increase be verified? According to the sixth provision of the 15 announcement, the enterprise shall find that the expenses incurred in the previous year, which are actually deducted before the enterprise income tax and actually deducted or deducted in accordance with the tax provisions, shall be deducted and deducted from the annual calculation of the project after the special declaration and explanation are made, but the period for the confirmation of the recovery shall not exceed 5 years.

Business expenses, advertising expenses and business publicity fees are calculated on the basis of the deduction of the main business income, other business income and sales revenue.

For enterprises specializing in equity investment business, the deduction of the business entertainment expenses shall be calculated according to the prescribed proportion in accordance with the dividends, dividends and share pfer income distributed by the invested enterprises.

In view of the characteristics of new businesses having no sales (business) income at the initial stage of operation, fifth of the 15 announcement clearly stated that the business entertainment expenses related to the preparatory activities during the preparation period of the enterprise can be included in the enterprise's preparation fee according to the actual amount of 60%, and be deducted according to the relevant provisions before tax.

Therefore, if an enterprise has a preparatory period and a production and operation period in a tax year, it should conduct tax treatment separately and make reasonable tax savings when the enterprise income tax is settled.

According to the tax law, the enterprise builds its own fixed assets and takes the expenses before the completion of the settlement as the tax basis. In accordance with the accounting system, self fixed assets are temporarily estimated and accounted for at the prescribed time of use, and the depreciation is started at the beginning of the month, resulting in a difference between the tax law and the accounting.

The notifications of the State Administration of Taxation on the implementation of several tax issues of the enterprise income tax law (National Tax letter [2010]79) stipulates that, after the use of the fixed assets of the enterprise has not yet been cleared out of the full amount of invoice after the investment of the fixed assets of the enterprise, the amount of the amount of the contract stipulated in the contract may be counted into the basis of the fixed assets tax base, and the adjustment shall be made after the receipt of the invoice, but the adjustment shall be carried out within 12 months after the use of the fixed assets is put into use.

Therefore, as long as the relevant invoices are obtained within 12 months after the accounting estimate is temporarily assessed, the differences between the tax law and the accounting will be eliminated.

In order to reduce the discrepancy between tax law and accounting, the notice of the State Administration of Taxation on certain issues of enterprise income tax (No. thirty-fourth of the State Administration of Taxation Announcement No. 2011) stipulates that the original value of assets shall be deducted from the net value of depreciation after the replacement or upgrading of the area, whether it is the replacement or upgrading of functions, and the enlargement of the area. It is not the fixed assets liquidation cost, but the tax cost of the fixed assets after the replacement. After the fixed assets are put into use, depreciation will be made according to the depreciation period stipulated by the tax law, so that the provisions of the tax law are consistent with the provisions of the subsequent expenditure of the accounting, and no tax adjustment is required when the enterprise income tax is settled.

Tax treatment for the loss of intangible assets that have not been amortized

According to the tax law, the amortization period of intangible assets shall not be less than 10 years.

With the rapid development of science and technology, some intangible assets have been replaced or eliminated in the past 10 years. How do we deal with the parts that are not amortized? The thirty-eighth regulation No. 25 provides that the replacement of other new technologies or has exceeded the legal protection period, has lost the use value and the pfer value, and the loss of intangible assets that have not been amortized should be submitted to relevant evidence materials for archival purposes.

Therefore, before the settlement of enterprise income tax is made, enterprises need to make special declaration according to Announcement No. 25 before tax deduction.

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