Tax Withholding: Can I Deduct The Invoice When I Pay?

When we calculate the income tax in 2013, the interest on individual loans payable has not yet been paid.

According to the eighth section of the enterprise tax law and the ninth provision of the enterprise income tax law, the actual interest rate of individual loans can be deducted, whether or not it is paid. However, the Inland Revenue Department considers that the principle of accrual basis can not be deducted according to the provisions of wages according to the principle of accrual basis.

Questions

(1) whether the interest paid by our company in 2013 can be deducted before the income tax. Is it necessary to obtain the invoice when deducting? If the interest on the loan payable before May 31, 2014 has been paid, can I deduct it? If there is no invoice at the time of payment, can it be deducted?

(2) if the interest is paid, the invoice can not be deducted because it has not been obtained, and the invoice has been obtained later. Is it deducted from the invoice in the year of the invoice, or is it deducted from the cost in 2013?

Reply

First, about

The eighth law of the enterprise income tax law of the People's Republic of China stipulates: "the actual expenses that are related to the acquisition of income, including costs, expenses, taxes, losses and other expenditures, are allowed to be deducted when calculating the taxable income."

The "actual happening" refers to the actual occurrence of the economic business (such as the provision of labor, the development of the lease period, the appropriation of funds, etc.), rather than the payment of funds.

According to the eighth article of the enterprise income tax law of the People's Republic of China, the ninth provision of the regulations on the implementation of the enterprise income tax law of the People's Republic of China provides: "the calculation of the taxable income of enterprises shall be based on the accrual basis, and shall be the income and expenses of the current period. Whether they are paid or not, they shall be regarded as the income and expenses of the current period, and shall not be the income and expenses of the current period. Even if the payments have been paid in the current period, they shall not be regarded as the income and expenses of the current period.

Unless otherwise stipulated by the regulations and the competent departments of Finance and taxation under the State Council. "

The ninth regulation of the implementing regulations emphasizes: "unless otherwise stipulated by the regulations and the competent departments of Finance and taxation of the State Council," all other systems of accrual basis shall be implemented.

Any tax laws are general provisions and special provisions. The special provisions are mainly based on anti avoidance, easy to collect and manage, and policy oriented.

Where there are no special provisions, general provisions shall be implemented.

For example:

1. the consulting fees, rents and other fees that happen in the enterprise are deductible as long as they happen in the current period, whether or not they can be paid. However, the Circular of the State Administration of Taxation on the deduction of wages and salaries of employees and the deduction of employees' welfare benefits ([2009]003) stipulates that the deduction of wages shall be deducted from the actual payment of wages, which is based on the need to avoid tax avoidance.

2. taking into account the long development period of real estate enterprises, the characteristics of the pre-sale and centralized delivery, in order to strengthen the management of the income tax of the real estate development enterprises, and ensure the balanced income tax of the real estate enterprises, the State Administration of Taxation issued the circular on the issuance of the enterprise income tax treatment method for real estate development and operation ([2009]31), which required that the receivables obtained from the unfinished products be recognized taxable income when the receipt was received, and the tax reduction should be made in the future when the taxable income was paid in the future.

3. the tenth provision of the enterprise income tax law of the People's Republic of China stipulates that expenses not related to production and operation can not be deducted before tax. However, the ninth provisions of the People's Republic of China enterprise income tax law also make special provisions. Public welfare donations (not related to production and business operations) are not over twelve percent of the current accounting profits, and can be deducted in real terms.

This is based on the guiding role of tax policy, giving some encouragement to the enterprises' moderate public welfare donation.

According to the ninth regulation of the implementation of the enterprise income tax law, the system of accrual basis shall be implemented without any special provisions.

Interest charges recognized by accrual basis, whether or not paid, can be deducted before tax.

Two. About legal credentials.

The notice of the State Administration of Taxation on Further Strengthening the management of ordinary invoices ([2008]80) stipulates that taxpayers' use of invoices which do not conform to the prescribed invoices, especially those that do not fill in the full name of the payment party, shall not allow taxpayers to use before tax deduction, tax deduction, export tax rebates and financial reimbursement.

The opinions of the State Administration of Taxation on strengthening the management of enterprise income tax ([2008]88) stipulate that "non compliant invoices should not be used as proof of pre tax deduction."

Some specific measures for further strengthening tax collection and Administration ([2009]114) stipulate that no valid and valid credentials are not required to be deducted before tax.

The invoice that the taxpayer obtains must be completed and the contents must be true, otherwise it will not be deducted before tax. "

As can be seen from the above provisions,

"The actual occurrence" stipulated in the eighth provision must provide the necessary evidence (that is, legal and valid credentials).

Legal credentials refer to the original vouchers, such as economic contracts, payment receipts, delivery and delivery documents, photocopies of identity cards and so on, which must be obtained according to the scope of tax invoice.

1. tax invoice issuing scope

Payments made to domestic units or individuals, and the acts of the unit or individual, which belong to the business tax or the scope of collection of value-added tax (except for the sale of financial commodities), shall be valid and valid by the invoice issued by the unit or individual.

In addition, no tax invoice must be issued.

If wages are made with self-made vouchers, the land pfer fees shall be accounted for by means of financial bills, and the property tax shall be accounted for by tax payment vouchers.

With regard to the scope of the issuance of tax invoices, the nineteenth rules for the implementation of the Interim Regulations on business tax, which are outside the "Regulations for the administration of invoices in People's Republic of China" and the detailed rules for their implementation, can be used for reference.

2. tax invoices issued amount

The amount of tax invoice is the amount of actual paction, that is, receivables, rather than the turnover of value added tax or business tax.

For example, there are many items in the sales tax according to the difference as the basis of business tax.

Another example is the business tax "a supply of materials" business. The amount of construction invoices issued by the construction company to the real estate enterprises includes the business tax of a material supply, but does not contain the amount of the material supplied by a company.

3. tax invoice issuing place

The place where the tax invoice is issued is issued by the tax authority for the VAT or business tax specified in the Provisional Regulations of the People's Republic of China on value added tax and the Provisional Regulations of the People's Republic of China on business tax.

The twenty-sixth rule of the People's Republic of China detailed rules for the implementation of invoice management stipulates that invoices must be invoiced at the time when the business revenue is confirmed.

No invoice can be issued without operation. "

The recognition of business revenue should be understood in accordance with the caliber of the tax law. The eleventh provision of the special invoices for value-added tax ([2006]156) stipulates that the special invoices for value-added tax shall be issued according to the time when the value added tax shall be paid.

It can be seen that the time of issuing tax invoices is consistent with the time of tax payment of value-added tax or business tax. Since the value added tax or business tax is declared monthly, the time for issuing tax invoices refers to the time when the duty of value added tax or business tax occurred.

According to the twelfth regulation of the Provisional Regulations on business tax of People's Republic of China and the twenty-fourth provision of its implementing rules, the time for the payment of interest tax on business tax shall be determined according to the principle of the actual receipt of interest and the date of interest receivable stipulated in the contract.

The business tax will be declared before 15 days of the following month, and the late fee will be calculated from the 16 day of next month.

Example: a company borrows 10 million yuan from the company B and borrows for three years. From January 1, 2013 to December 31, 2015, the annual interest rate is 10%. The two sides agreed to repay the principal and interest once a year after the expiration of three years.

The duty time of business tax payment is December 31, 2015, and the tax invoice is issued on any day in December 2015.

5., the tax adjustment method should be obtained without obtaining the tax invoice.

According to the notice issued by the State Administration of Taxation on certain issues concerning enterprise income tax (No. thirty-fourth of the State Administration of Taxation Announcement No. 2011), "the relevant costs and expenses actually incurred in the year of the enterprise fail to obtain valid certificates of cost and cost in a timely manner due to various reasons. When the enterprise pays quarterly income tax in advance, it can temporarily calculate the book amount, but when the settlement is paid, the effective certificate of the cost and cost should be supplemented."

Therefore, the amount allowed to be deducted from the tax year before the final settlement period shall be obtained by the tax invoice (the tax invoice is set out and the time is set before the settlement is paid), but the tax invoice is not obtained. It is not allowed to be deducted before tax, and the tax adjustment shall be increased. When the invoice is actually made available, the deduction will be deducted and the longest time will be five years.

The deduction time was originally implemented for three years, and changed from 2011 to five years.

The notice of the State Administration of Taxation on certain issues concerning tax treatment of the taxable income of enterprise income (the State Administration of Taxation Announcement No. fifteenth of 2012) stipulates that "according to the relevant provisions of the" law of the People's Republic of China on tax collection and administration ", the enterprises shall find that the expenses incurred before the enterprise's income tax is deducted and deducted or deducted less in accordance with the provisions of the tax in the past year, and after making special declarations and instructions, the enterprise will make an allowance for the deduction of the item's annual calculation, but the confirmation period of the supplementary compensation shall not exceed 5 years.

The enterprise income tax due to the above reasons can be deducted from the taxable amount of enterprise income tax in the year of confirmation. If the tax is not deducted, it can be deducted or applied for tax refund in the next year.

If a loss making enterprise seeks to confirm the expenses that have not been deducted before the enterprise income tax in the previous year, or if a profit enterprise has suffered losses after its confirmation, it should first adjust the amount of the annual loss payable by the expenditure, and then calculate the enterprise income tax payable in the following year according to the principle of making up the deficit, and shall deal with it according to the preceding paragraph.

In the above example, the interest invoice should be issued in December 2015. When calculating the enterprise income tax for the year 2013 or 2014, no tax invoice is required, which is allowed to be deducted before tax.

An enterprise can confirm interest payable on the basis of the loan contract and interest calculation list.

Here, the list of loan contracts and interest calculation can be used as a valid and valid evidence for pre tax deduction.

6. tax inspection finds that no income tax has been obtained from tax invoices.

Tax law requires taxpayers to purchase goods and provide services. The purpose of obtaining invoices is to strengthen the management of the tax revenue of upstream enterprises. This is the purpose of "tax by vote".

The thirty-fifth regulation of the People's Republic of China invoice management stipulates that "the use of other documents instead of invoices shall be ordered by the tax authorities to correct them and may be fined not more than 10 thousand yuan."

If the taxpayer fails to obtain the invoice at the prescribed time (invoice opening time), the tax authority shall order the taxpayer to require the upstream enterprise or individual to make up the invoice.

If a supplementary invoice can be obtained within the prescribed time limit (before the tax treatment decision is issued), no tax adjustment is made (otherwise the tax refund is added on the other side).

If the tax invoice is still not obtained before the tax decision is issued, the tax adjustment shall be made, and the invoice shall be supplemented later, and the deductible deduction shall be made (the period from the next five months of the supplementary tax period is calculated from the next month of the turnover tax payment obligation).

In summary, according to the agreement between your company and the individual loan contract, if the person has not yet fulfilled the invoice opening time (that is, the interest payment date stipulated in the contract) in 2013, if your company can provide legal evidence to prove that the interest expense actually occurs in the current period, and the interest expense has not exceeded the standard stipulated by the tax law, it can be deducted before tax, and no tax adjustment is made.

If the loan agreement has not yet obtained the invoice before May 31st, the interest expense can not be deducted before tax.

In the next 5 years, the invoice will be deducted to the deduction of interest year.

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