What Benefits Can Enterprises Enjoy In Supporting Epidemic Prevention Donations, Cross Border Financing, And Preventing And Controlling Material Supply?

1, what tax benefits can be given to public donations for epidemic prevention?

According to the recent preferential tax policies, there are four main aspects in encouraging public donations.

First, donation of cash and articles to deal with the epidemic through the public welfare social organizations or the state organs above the county level and their departments and other state organs shall allow full deduction of enterprise income tax or personal income tax before tax.

The two is to directly donate to the hospitals that undertake the epidemic prevention task, and to fully deduct the enterprise income tax or personal income tax before the tax.

Three, free donations should be exempt from value-added tax, consumption tax, urban maintenance and construction tax, education fee addition and local educational attachment.

The four is to expand the scope of donation tax exemption.

Compared with the current policy, the policy on the income tax of the epidemic has two main characteristics:

The first is to break through the limitation of proportions. The policy is clear that enterprises and individuals should donate cash and articles in response to epidemic situations through public welfare social organizations or state organs at or above the county level, and allow them to be deducted in full when calculating taxable income.

The second is to break through the procedural restrictions. Taking into account the urgency of the outbreak, the policy stipulates that enterprises and individuals directly donate donations to hospitals that undertake epidemic prevention and control tasks to cope with the epidemic, and allow them to be deducted in full when calculating taxable income.

Below are specific questions and answers through these questions and answers.

1, Q: our company has purchased a group of medical supplies such as medical alcohol, disinfectant and so on. It has been donated to Hubei by the China Charity Federation for the prevention and treatment of new crown pneumonia. Can the business enjoy exemption from VAT?

One

Q: our company has purchased a group of medical supplies such as medical alcohol, disinfectant and so on. It has been donated to Hubei by the China Charity Federation for the prevention and treatment of new crown pneumonia. Can the business enjoy exemption from VAT?

Answer: you can enjoy it. The third circular of the Ministry of finance of the General Administration of Taxation on the prevention and control of the new type of coronavirus infection in the prevention and control of the donation of the New Zealand coronavirus infection (2020 No. ninth, hereinafter referred to as "Notice No. 9)" stipulates that the units and individual businesses will produce and entrust goods processed or purchased by means of public welfare social organizations and state organs at the county level or above, or directly. The hospitals that are responsible for the epidemic prevention task will be exempt from VAT by donating gratuitous donations to cope with the new type of coronavirus infection. The China Charity Federation belongs to the "public welfare social organization". Your company can donate medical materials without compensation to the public welfare organizations such as the China Charity Federation. It can enjoy the above exemption from VAT according to the regulations.

Two

Q: our company is a liquor making enterprise. In order to support the new crown pneumonia epidemic prevention and control, we have produced a batch of 75 degrees alcohol and are going to donate it to the county government for disinfection and epidemic prevention. Can you enjoy the preferential policies of consumption tax?

A: No. 9 announcements stipulate that units and individual industrial and commercial households will donate goods produced, commissioned, processed or purchased by public welfare social organizations and state organs at the county level or above, or directly to hospitals responsible for epidemic prevention and control, and donate gratuitous VAT, consumption tax and their appends to hospitals for coping with the new type of coronavirus infection. The notice of the Ministry of Finance and the State Administration of Taxation on adjusting the consumption tax policy (No. 93 [2014]) stipulates that the consumption tax on alcohol should be abolished since December 1, 2014.

Alcohol does not fall within the scope of consumption tax, and the alcohol produced by your company does not need to pay consumption tax whether it is donated or sold abroad. Your company donated alcohol to the county government for disinfection and epidemic prevention. You can enjoy VAT and its additional preferential policies in accordance with the Announcement No. 9.

Three

Q: what should enterprises pay attention to when they donate information through public welfare social organizations or state organs at the county level or above?

Answer: enterprises should donate donations for public welfare donations in time, through donations from public welfare social organizations or state organs above the county level and other state organs and other state organs to deal with the new crown pneumonia epidemic situation. The donation note is kept and kept by the enterprise.

Four

Q: what information should companies keep if they donate donations directly to hospitals that undertake epidemic prevention tasks to cope with the outbreak of new crown pneumonia?

Answer: enterprises directly donate donations to hospitals that undertake epidemic prevention and control tasks to cope with the new crown pneumonia epidemic situation. They should take good care of themselves and keep the donation letter received by the other party.

Five

Q: can individuals deduct taxes for the Wuhan epidemic before tax? How do I deduct it?

Answer: individual donations can be deducted from personal income tax through donations from public welfare social organizations or state organs at the county level or above, as well as donations from state organs directly responsible to the epidemic prevention and control task. The specific deduction method can be implemented in accordance with the "Notice of the Ministry of Finance on the donation of personal income tax policy on charitable charities" (promulgated by the Ministry of finance of the Ministry of Taxation on 2019, No. ninety-ninth). When deducting, it can be deducted from the personal income tax withheld from the wage income withholding and the deduction of personal income tax from the classified income. It can also be deducted when the consolidated annual income is cleared.

Six

Q: can I directly donate the mask to the hospital before tax deduction? What can I do if I can deduct it?

Answer: according to the Announcement No. ninth of fiscal and taxation 2020, individuals who directly donate donations to hospitals that undertake epidemic prevention and control tasks to cope with the epidemic situation of pneumonia caused by new coronavirus can be deducted in full when calculating the taxable income of personal income tax. At the same time, when deducting the tax deduction for personal income tax and filling out the detailed list of donation deduction for charitable donations of individual income tax, it is necessary to indicate "direct donation" in the remarks column.

Seven

Q: our company has donated a group of medical oxygen inhalation equipment directly to the Wuhan Fire God Mountain hospital for the treatment of new crown pneumonia. Can the business enjoy exemption from VAT?

Answer: you can enjoy it. Notice No. third of Article 9 provides that units and individual industrial and commercial households will donate goods produced, commissioned, processed or purchased through public welfare social organizations and state organs at the county level or above, or directly to hospitals responsible for epidemic prevention and control. Your company directly donates medical equipment to Wuhan Fire God Mountain hospital for the treatment of new crown pneumonia, and can enjoy the above exemption from VAT according to the regulations.

Two

What are the foreign exchange convenience measures to support overseas donations for epidemic prevention?

These foreign exchange facilitation measures to support overseas donations for epidemic prevention are:

Open up the "green channel":

1, facilitate the import of epidemic prevention materials. Banks should open up a "green channel" for cross-border RMB business such as import and export of related materials, such as epidemic prevention and control. For the import of epidemic prevention and control materials needed by relevant departments and local governments, the branches of foreign exchange bureaus shall direct the banks in their respective districts to simplify the procedures and materials for import, purchase and payment of foreign exchange.

2, for the foreign exchange donation fund imported and supported by the epidemic prevention and control, the bank can directly handle the existing foreign exchange settlement account of the current account through the recipient unit, and suspend the implementation of the request for the donation of foreign exchange account.

A number of banks announced that they were exempt from cross border donation fees.

During the fight against epidemics, no fee will be waived for donations from units or individuals to special account for epidemic prevention in Hubei or special funds for epidemic prevention.

1, personal foreign exchange quotas are limited each year, but what about donations from overseas?

It can be handled according to the "no quota" business. In from February 10th to 12th, the Zhejiang branch of the foreign exchange bureau instructs the Bank of China Xiaoshan branch and the Xiaoshan agricultural and commercial bank to purchase and pay 38 thousand and 600 US dollars and 1070 US dollars respectively for the 2 individuals according to the "no quota" business, and supports the import hospital protective clothing and masks to donate to hospitals in the province.

2, the donation of enterprises, but there is no payment of foreign exchange how to deal with?

It can be solved through the difference report. In February 9th, a sewing machine Limited by Share Ltd commissioned German subsidiaries to purchase 3000 sets of protective clothing worth about 100 thousand euros, all donated, but there was no problem of foreign exchange payment. The Zhejiang branch of the foreign exchange bureau instruct the enterprise to solve the problem through the balance report, and supports the corporate philanthropy.

3, can foreign enterprises and individuals donate the commission fee?

The cross border donation fee can be exempted. ICBC, Hubei branch, China Construction Bank Hubei branch, Minsheng Bank Wuhan branch, Ping An Bank Wuhan branch, Hengfeng bank Wuhan branch and other banks announced that during the fight against the epidemic, no fee was collected for donations from units or individuals to special account households or remittance of special funds for epidemic prevention in Hubei area.

You can enjoy preferential exchange rate. The Hubei branch of ICBC has a special preferential price for the interest rate of foreign exchange loans and the rate of foreign exchange settlement and sale, and gives preferential rates of 100%, 70% and 50% between the exchange rate retail price and wholesale price difference. Hengfeng bank Wuhan branch gives the maximum discount to the donation fund.

Three

What foreign exchange policies do we have to support material import and cross border financing?

To support enterprises in importing anti epidemic materials and cross-border financing, these foreign exchange policies are:

1, facilitate the import of epidemic prevention materials. Banks should open up a "green channel" for cross-border RMB business such as import and export of related materials, such as epidemic prevention and control. For the import of epidemic prevention and control materials needed by relevant departments and local governments, the branches of foreign exchange bureaus shall direct the banks in their respective districts to simplify the procedures and materials for import, purchase and payment of foreign exchange.

2, support cross-border financing of enterprises to prevent and control the epidemic. When enterprises pay for capital account income related to epidemic prevention and control, they do not need to submit documents in advance or one by one. Banks should strengthen post examination for the authenticity of the use of enterprise funds. If there is any need for epidemic prevention and control, enterprises can cancel the borrowing limit of foreign debts, and apply for online registration of foreign debts online, so as to facilitate cross-border financing of enterprises.

3, import of epidemic prevention materials can take "green channel". In February 7th, a certain import and Export Co., Ltd. of Yiwu, Zhejiang, was required to pay 80 thousand euros to Poland for the import of 5870 protective clothing, but the company has not yet opened the euro account. The Yiwu branch of the foreign exchange bureau instruct the Yiwu rural commercial bank to handle the opening business of the euro in advance with the relevant contract documents and undertaking.

We need remittance to buy epidemic prevention materials, but time is urgent. What should we do if there is no contract?

In February 11th, a medical equipment Co., Ltd. of Hangzhou was required to pay 3055 US dollars for the purchase of 10 thousand masks. The Zhejiang branch of the foreign exchange bureau instruct the Yuhang rural commercial bank to screen the business of WeChat in accordance with the import business provided by the enterprise. It takes less than 10 minutes to complete the business.

It is necessary to remit money to purchase epidemic prevention materials, but it is not a "directory enterprise".

Directory enterprises refer to the import and export enterprises that have archival records in the foreign exchange bureau. In January 29th, a hospital in Ji'an, Jiangxi province had to buy a number of special masks and goggles from Germany, but the hospital was neither a directory company nor a foreign exchange account. The central branch of the Ji'an branch of the foreign exchange bureau instructs the Yongxin branch of Bank of China special operations to simplify the business process and materials needed to import and purchase foreign exchange, and complete the transfer of funds in less than 1 hours.

Can import and export of anti epidemic materials be waiver?

Now, relevant departments encourage banks to reduce fees.

For example, the Wenzhou branch of Ouhai branch of the Agricultural Bank of China has made clear that the foreign exchange business of the epidemic prevention related materials can enjoy 120 points in real terms and 100 points for foreign exchange purchase.

Four

What tax incentives can be provided to support the epidemic prevention and control supplies?

The recent preferential tax policies have mainly supported the following aspects:

1, we should refund the value-added tax increment tax refund to the key protection material production enterprises.

2, taxpayers provide the focus of epidemic prevention and control to ensure that goods transportation revenue is exempt from VAT.

3, taxpayers are exempt from VAT from providing public transport services, life services and the necessary income of the residents.

4. Expand production capacity and purchase equipment for the key material production enterprises of the epidemic prevention and control, allowing the one-time deduction of enterprise income tax before tax.

5, the Department of health and health authorities shall be exempted from customs duties directly for the prevention and control of epidemic materials.

Here is a detailed set of questions and answers.

1 question: in accordance with the preferential treatment of enterprise income tax matters, tax concessions need to retain the reference materials. Is there any material to be kept when the epidemic prevention and control focus on ensuring that the material production enterprises enjoy a one-off Deduction Policy?

A: the State Administration of Taxation issued a Notice No. fourth in 2020. It is clear that the one-off Deduction Policy for the key material production enterprises of epidemic prevention and control shall be implemented in the preferential policies and management, etc., with reference to the "notice on the implementation of the enterprise income tax policy on equipment and appliances" (the State Administration of Taxation on 2018 No. forty-sixth). The main retained reserve information is also part of the preferential policy management. Therefore, referring to the 46 announcement, including the data on fixed assets purchase time, fixed assets voucher, and accounting for the difference between assets tax treatment and accounting treatment, three kinds of data.

2 question: our company is a new type of coronavirus detection reagent manufacturer. The focus of epidemic prevention and control is to ensure that the material production enterprises enjoy a one-time Deduction Policy. How should we make tax returns?

Answer: enterprises enjoy the new equipment purchased from the expansion of production capacity, and once they are included in the current period cost tax before the enterprise income tax deduction policy, the monthly (quarterly) prepayment of the fixed assets shall be reported in the fourth line of the fixed assets accelerated depreciation (deduction) schedule (A201020), "two, one time deduction of fixed assets"; the annual tax declaration should be "asset depreciation and amortization". And tax adjustment schedule (A105080) "Tenth lines" (three) one time deduction of fixed assets.

3 question: I am a courier company. Now I am a small taxpayer. Prior to this month sales have been less than 100 thousand yuan, enjoy small and micro enterprises exempt from value-added tax policy. Recently, affected by the new crown pneumonia epidemic, the volume of online shopping has increased. Our sales volume has exceeded 300 thousand yuan in 1-2 months. Then can't I enjoy tax exemption now?

Answer: "the announcement of the Ministry of Finance on the prevention and control of pneumonia related to the new coronavirus infection" (No. eighth of 2020, hereinafter referred to as "Notice No. 8") stipulates that the income earned by the taxpayer to provide the residents with the necessary materials for the express delivery service is exempt from the value added tax. "Fifth" The specific scope of express delivery service shall be implemented in accordance with the provisions of the sales and service, intangible assets and real estate notes (fiscal 36 [2016] issued). The policy has been implemented since January 1, 2020, and the deadline is announced according to the epidemic situation.

For the residents to provide the necessary living materials, the income from the express delivery service refers to the income received from the delivery service for the personal express delivery of the residents. Therefore, the income collected by your company in 1-2 months, whether or not its monthly sales exceed 100 thousand yuan, can be exempt from VAT according to the relevant regulations of the 8 announcement.

4 question: can enterprises with tax credit C level enjoy this tax refund policy focusing on the prevention and control of epidemic diseases and ensuring the material production enterprises?

Answer: you can enjoy it. The second regulation No. 8 provides that the key point of the epidemic prevention and control is that the material production enterprises can apply to the competent tax authorities on a monthly basis to apply for the full refund of the increment tax on value added tax. The policy has been implemented since January 1, 2020, and the deadline is announced according to the epidemic situation. The list of key production and protection enterprises for epidemic prevention and control is determined by the provincial and above development and reform departments, industrial and information departments, and the tax credit level of enterprises is not required. Therefore, if the enterprises with tax credit C level have been identified by the provincial and above development and reform departments, the industrial and information departments as the focus of the epidemic prevention and control to ensure the production enterprises of materials, they can submit tax refund applications to the competent tax authorities from February 2020 and after the tax declaration period according to the 8 announcement.

5 question: can sorting services enjoy the tax exemption policy stipulated in the fifth Circular of the Ministry of finance of the Ministry of Finance on the prevention and control of pneumonia related to the new coronavirus infection (2020 No. eighth)?

Answer: No. 8 notice fifth provides that the income earned by the taxpayer to provide the residents with the necessary materials for the express delivery service is exempt from VAT. The specific scope of express delivery service shall be implemented in accordance with the provisions of the sales and service, intangible assets and real estate notes (fiscal 36 [2016] issued). The policy has been implemented since January 1, 2020, and the deadline is announced according to the epidemic situation.

To provide the residents with the necessary delivery materials, the delivery service refers to the delivery service for the personal express delivery of the residents. Receiving service refers to the business activities of receiving, sorting, and delivering services of letters and parcels within the time limit promised by the sender. Among them, the pick-up service refers to the collection of letters and parcels from the sender and delivery to the service provider's distributing center in the same city.

The sorting service refers to the business activities that the service providers classify and distribute letters and parcels in their distribution centers. Delivery service refers to the business activities of the service provider delivering the letters and parcels from the distribution center to the recipient of the same city. Therefore, the above sorting services provided by your company can be exempt from VAT preferences in accordance with the relevant provisions of Announcement No. 8.

6 question: our company is a shipping company. Recently, cargo ships were shipped to medical care and control materials such as medical gloves, protective clothing, and a batch of grain to Wuhan. May I ask whether our company's transport revenue can be exempted from VAT?

Answer: third of the 8 circular stipulates that the income from the key protection materials for the transport epidemic prevention and control of taxpayers is exempt from VAT. The specific scope of the key protection materials for epidemic prevention and control is determined by the national development and Reform Commission and the Ministry of industry and information technology. The policy has been implemented since January 1, 2020, and the deadline is announced according to the epidemic situation.

Therefore, if the goods shipped by your company belong to the key areas for ensuring the scope of the epidemic prevention and control established by the national development and Reform Commission and the Ministry of industry and information technology, the income gained from the corresponding water transport services can be exempt from VAT according to the Announcement No. 8.

7 question: our company is the focus of the national development and Reform Commission to determine the focus of the epidemic prevention and control of material production enterprises. Can you go to the Inland Revenue Department in February to apply for tax refund?

Answer: according to the notice issued by the State Administration of Taxation on the prevention and control of the epidemic of pneumonia related to the new coronavirus infection (the Announcement No. fourth of the State Administration of Taxation 2020), the key point of the epidemic prevention and control is to ensure that the material production enterprises apply the value-added tax increment tax refund policy according to the second regulation No. 8, which should be completed within the tax return period of the value-added tax. After the current value-added tax declaration, we apply to the competent tax authorities for refund of the increment tax. Therefore, your company can complete the value-added tax declaration in January 2020 during the tax declaration period in February, and then apply for the incremental tax refund in accordance with the Announcement No. 8 to the competent tax authorities.