The Approved Method Of Collection Of Income Tax Will Be Implemented Next Year. Cross Border Electricity Providers Welcome Again

In order to promote cross-border e-commerce enterprises to better carry out export business, recently, the State Administration of Taxation issued a cross-border electricity supplier income tax approved collection method, the implementation since January 1, 2020.

In order to support the development of cross-border electricity providers and promote the innovation of the foreign trade mode, the State Administration of Taxation recently issued the "notice on the verification of the export income tax of retail enterprises in the cross border electricity supplier comprehensive examination area", and authorized the collection of the eligible cross-border electricity enterprise income tax, and the taxable income rate was determined by 4%. At the same time, eligible enterprises can enjoy preferential policies for small profit enterprises and tax exemption policies stipulated in the tax law, and will be implemented from January 1, 2020.

Li Changnian, chief officer of the two grade enterprise income tax department of Shenzhen Taxation Bureau, For cross-border electricity providers (taxable income rate) 4%, is the lowest proportion of approved tax, if the cross-border e-commerce enterprises are still in line with the small and micro, in line with other preferential conditions, after the actual income tax burden rate is only 1%, or even lower than 1%.

The conditions for cross-border electricity suppliers to meet the approved levy include:

First, register in the comprehensive examination area, and register the date, name, unit of measurement, quantity, unit price and amount of the export goods on the cross border e-commerce online comprehensive service platform.

The two is that the export goods go through the declaration procedures of e-commerce export through the Customs at the location of the comprehensive test area; three, the export goods do not obtain valid receipts, and their value-added tax and consumption tax enjoy the tax exemption policy.

Li Changnian, chief officer of the two grade enterprise income tax department of Shenzhen Taxation Bureau, This will greatly reduce the actual tax burden of cross-border electricity providers. This policy will not only reduce the tax burden of our large cross-border e-commerce enterprises, but also bring more favorable margins for small and medium-sized cross-border e-commerce enterprises.