When the business ceases to operate and prepares for write-off, many operators feel that they do not need to pay attention to fiscal duties as long as they cease to operate. In fact, the write-off chain is a tax priority verification node, with taxes and charges arising from the disposal of inventory, clearing of transactions and distribution of profits. Tax planning during the write-off phase, pre-empting of assets and claims obligations, compliance to reduce liquidation tax obligations and avoid impediments to write-off。
I. What are the main taxes involved in the liquidation of companies? Where are the risks concentrated
Common taxes written off during liquidation: value added tax (inventory, disposal of fixed assets), enterprise income tax (reconciliation proceeds), shareholders'share of red tax (distribution of surplus property)。
Hf risk: significant inventory, fixed assets are retained on the books and the undeclared income is actually disposed of; large transactions are long-outstanding; higher undistributed profits on the books and red tax is generated on the distribution of surplus assets; there are tax obligations, late declarations are not cleared in advance and write-off processes are directly blocked. Many enterprises did not find the problem until they started writing off, and the cost of corrective work increased significantly。
Ii. How is the booking inventory disposed of? Tax-related differences in different treatments
Common disposal routes for pre-cancellation goods: external discount sales, distribution to shareholders, end-of-life damage。
Foreign sales: declaration of vat at fair price, recognition of liquidation proceeds
(a) distribution to shareholders: value added tax (vat) based on sales being treated as equivalent
Real end-of-life: retention damage, obsolescence, supporting documentation for loss, treated as loss of assets
Mistakes: many operators directly believe that bookings can be processed at zero cost and need not be declared. As long as the ownership of goods is transferred, most triggers the vat tax obligation; there is no basis for self-cancellation and the tax authorities do not accept the loss deduction。
Iii. Settlement of transactions: how do accounts receivable and payable address the tax reduction
Accounts receivable: timely and recoverable collections; uncollectible bad debts, preparation of transactions contracts, collection records, certificates of debtor failure, etc., to be deducted from the declaration of bad debts losses。
Accounts payable: accounts payable determined to be non-obligating require transfer to liquidation proceeds and payment of enterprise income tax. There should be no long-term check-outs to try to avoid them; it would be possible to negotiate priority settlement of arrears and reduce taxable earnings。
Iv. Distribution of proceeds of liquidation and surplus property, and how can shareholders ' taxes be reasonably planned
Proceeds of liquidation = total realizable value of assets - basis of taxation of assets - cost of liquidation - associated taxes - gain or loss on liquidation of obligations. The proceeds of liquidation are subject to corporate income tax。
After the enterprise has settled its entire debt, the remaining property is allocated to the shareholders: 20 per cent of the tax is levied, depending on the dividends of the original investment cost of the shareholders。
Planning: prior to the formal commencement of liquidation, reasonable disposal of assets, settlement of various types of liabilities, early liquidation of false transactions and reduction of taxable gains during liquidation. The prohibition on the transfer of assets without charge and the transfer of inventory at a low cost is an artificially low surplus and can be easily taxed。
V. How long before a write-off enterprise is scheduled to run a fiscal combo? What's the point
It is proposed to initiate self-requirement for taxes three to six months before write-off。
1. Completing all late tax returns and clearing arrears
2. To streamline inventories, fixed assets, develop disposal programmes and measure the corresponding taxes
3. Reconcile transactions on a case-by-case basis to collect, settle and treat bad debts
4. Clean-up of long-term stockholders ' cross-borrowing to avoid treating them as equivalent
5. Payment of blank invoices, tax control equipment, regularization of calendar-year certificate statements for tax clearance verification。
Summary
The write-off is not the end of the fiscal obligation, and the liquidation verification will re-assess the accounts of the enterprise for the calendar year. The early consolidation of asset disposal and transactional clean-up would avoid large and abrupt taxes and charges during the liquidation phase. If you're going to shut down a business, you want to comb out the list of pre-cancellation tax checks and welcome the comment area exchange。
