Corporate Income Tax Deduction "All Sentient Beings"

As a result of legal deductions, whether an expenditure can be deducted before tax depends on whether it is a tax deductible expenditure and whether the payment certificate can be used as an effective deduction.

Which credentials can be used as effective deductions, and become the focus of corporate income tax collection.

The principle of authenticity is the first principle.

The expenses incurred by an enterprise should be a real occurrence and the proof of the expenses incurred is true and effective.

The principle of legality is also contained in the principle of authenticity, and the provisions of the tax law shall be followed in the calculation of the tax deduction items and amounts and the amount of taxable income, and the financial and accounting treatment methods of enterprises are inconsistent with the provisions of the tax law.

The provisions of the tax law are not clear, without violating the basic principles of pre tax deduction, they will follow the state financial and accounting regulations.

The deduction, especially the invoice, should conform to the tax law.

The relevant principle deducts the relevant expenses reflected by the credentials, which should be directly related to the income obtained, that is, the actual expenditure that can directly bring about the inflow of economic interests or the inflow of the expected economic benefits.

The principle of reasonableness should be deducted from the expenses reflected in the vouchers, which must be included in the current profits and losses or the cost of the relevant assets. The method of calculation and distribution should conform to the general business practices and accounting practices.

The amount of expenditure reflected in the accounting principle must be determined, or the expenditure must not be deducted before tax.

The time of payment for each expenditure can be determined by the enterprise, but it must be measured in real time and can be measured reliably, not estimated or possible.

The principle of benefiting period is to divide the principle of income expenditure and capital expenditure.

Direct deductions should be made in the current period; capital expenditures should be deducted in stages or included in the relevant asset costs, and no direct deduction should be made during the current period.

The expenses or assets formed by the non taxable income for expenditure shall not be deducted or calculated for the corresponding depreciation and amortization deduction.

Except for special provisions in the tax law, expenditures shall not be repeatedly deducted.

The principle of accrual basis is the general principle of deducting the management of vouchers. It is also the basis for enterprises to carry out accounting recognition, measurement and reporting according to accounting standards. Except for tax laws and regulations and the State Council's financial and tax authorities, the principle of deduction before tax and the amount of tax payable should be followed.

Accrual basis, also known as accrual basis and accrual basis, is used to obtain the right to receive cash or to pay cash, which is the indication of the occurrence of power and responsibility, recognizing the current income and expenses, claims and debts.

Income and expenses belonging to the current period, whether they are paid or not, are regarded as income and expenses in the current period; they do not belong to the current income and expenses, and even if the payments have been paid in the current period, they are not regarded as the income and expenses of the current period.

At the same time, the principle of proportioning should be complemented. The expenses of enterprises should be declared or deducted in the current proportion or the distribution period, and should not be advanced or lagged, so as to correctly confirm profits and losses.

Specific types of valid deductions under pre tax deduction

Comprehensive taxation, finance, accounting, etc.

According to the source, deducting credentials can be divided into external vouchers and internal vouchers. According to whether vat or business tax should be paid, external vouchers can be divided into taxable project vouchers and non taxable project credentials.

Payment of taxable items should be obtained as valid vouchers.

Taxable items refer to items that should be paid (or exempt) vat or business tax when the goods, real estate, labor or services are accepted and the intangible assets are granted.

Payment of non taxable items does not require (not allow) to obtain invoices.

Non taxable items refer to projects where the income party fails to pay VAT or business tax according to law.

When an enterprise takes out non taxable items, it should obtain corresponding valid certificates and deduct the tax according to the regulations.

Valid tax deductions for common tax deduction include, but are not limited to, the following:

1. payment of taxable items paid to domestic enterprises or individuals, invoices issued by the enterprise or individual.

2. the operating taxable income paid to the non enterprise units such as administrative organs, public institutions, and military units shall be invoiced by the unit.

3. purchase of duty-free agricultural products from farmers (livestock) in the territory, agricultural products sales invoices issued by farmers (herdsmen) or agricultural products purchase invoices issued by enterprises.

4. pay government funds and administrative fees, and collect financial instruments issued by departments.

5. to pay taxes (Fees) deductible before tax, tax payment documents issued by tax authorities or tax payment certificates.

6. appropriations for workers' union funds and special receipts for trade union funds issued by trade union organizations.

7. payment of land pfer fees, financial instruments issued by the land department.

8. social insurance premiums, social insurance premiums, special receipts issued by social security institutions, etc.

9. deposit the housing provident fund, the housing accumulation fund remittance (Supplement) payment book and bank pfer bill stamped by the management agency.

10. through donations from public welfare social organizations or people's governments at or above the county level and their departments, donations donated by the financial sector are supervised.

11. collect fees and deductions from the tax authorities or other departments, collect collection certificates and payment books issued by departments, such as labor union funds collection credentials.

12. the pre tax deduction of assets losses shall be carried out in accordance with the provisions of the "administrative measures for pre tax deduction of enterprise assets loss income tax" (promulgated by the State Administration of Taxation on 2011 Announcement No. twenty-fifth).

13. breach of contract fees, compensation fees, cancellation of labor contract (dismissal) compensation, demolition compensation fees and other non taxable project expenditures, obtaining receipts, receipts, receipts or signature lists of personal receipts, such as the cancellation of labor contracts (dismissal) compensation, demolition compensation fees, etc., and supplemented with equivalent credentials and photocopies or identity cards of receivables or individuals as supplementary evidence.

14. according to court decisions, mediation, arbitration and other expenses, court judgments, rulings, mediation documents, and arbitral awards, notarized creditor's rights instruments and payment documents that can be carried out by the people's court.

(about this item, the author persisted for several years, but after all, it is only the author's personal view. Therefore, the fashion of lectures dare not use the affirmative tone completely. Generally speaking, it will be added to the sentence "the specific provisions of the local competent tax authorities shall prevail."

Up to now, the Announcement No. ninety-second issued in 2015 of the State Administration of Taxation on December 25, 2015 and the same day came into effect, that is, the notice on the issue of certain business tax clearly stipulates that "sixth of the Provisional Regulations on business tax" include certificates of compliance with the relevant provisions of the competent department of the State Council, including court judgments, rulings, mediation documents, arbitration awards and Notarial Creditor's rights instruments.

According to this provision, since the above certificate is a deduction for sales tax of business tax, there is no legal barrier to tax deduction before income tax.

15. the amount of money paid to units or individuals outside China should be provided with contracts, foreign exchange payment documents, units or individuals to sign documents.

If a tax authority is doubtful in its examination, it may require it to provide the confirmation certificate of the notary public abroad and examine and approve it by the tax authority.

16. the enterprise's self-made regulations conform to financial and accounting regulations, which can directly reflect the calculation basis of cost allocation and the material cost accounting table, assets depreciation or amortization form, manufacturing cost collection and distribution form, product cost calculation sheet, labor payment form for payment of employees, travel allowance, pportation subsidy, and communication fee subsidy documents.

17. tax laws and regulations have special provisions or requirements for pre tax deduction of enterprise income tax, and shall be deducted according to the regulations or requirements.

18. other valid and valid certificates prescribed by the Department of Finance and taxation under the State Council.

If the tax laws and regulations have special provisions or requirements, they shall be deducted according to the regulations or requirements.

Special provisions for pre tax deduction and effective deduction of voucher management

If a taxpayer fails to meet the requirements, forged, altered, false invoices, receipts and other bills shall not be taken as valid deductions.

Special payment items should also have relevant information as annexes or references, and some expenses can not be deducted even if effective certificates are obtained.

1. the interest that an enterprise has to borrow from a non-financial enterprise or individual shall, in addition to obtaining the legal deduction certificate, pay the interest for the first time and make the deduction before tax, it shall also provide "a description of the similar loan interest rate for the same period in any financial province in the province".

2. wages deduction, wage distribution plan, wage settlement sheet, labor contract, personal income tax withholding, and social insurance list sealed by social security institutions.

3. tobacco advertising and advertising expenses should not be deducted when calculating the taxable income.

4. the expenses generated from the use of non taxable income shall not be deducted when calculating taxable income; the depreciation and amortization of assets calculated for expenditures shall not be deducted when calculating taxable income.

The collection method of enterprise income tax is paid in advance according to the season (month) and is paid at the end of the year.

The related costs and expenses incurred by the enterprise in the year are not valid for obtaining the valid certificate of cost and cost in a timely manner because of various reasons. When the quarterly income tax is paid in advance, it can be accounted for temporarily according to the book amount. However, when the settlement is made, the effective certificate of the cost and cost should be supplemented.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.