The circular of the ministry of finance and the general state tax administration on income taxes on credits, returns of transfer taxes incorporated into the profits of enterprises (custom 74) stipulates that the exemption and return of the business tax (which includes withdrawals and withdrawals and withdrawals, respectively) shall be combined with the profits of the enterprise, with the exception of projects for which the department of state, the ministry of finance and the general state tax administration have specified, and with respect to direct relief or withdrawals, with the profits of the current year; in the case of refunds or refunds, the profits of the year in which the refund is actually received shall be incorporated。
Accounting treatment of tax returns
(i) principles for the accounting treatment of tax return
Notices issued by the ministry of finance on accounting treatment requirements for the relief and return of transit taxes (fiscal number 6, hereinafter referred to as the circular) are essentially in the same spirit as the provisions of the regulations on accounting treatment for the return of transit taxes:
Businesses that receive tax refunds, tax refunds, etc., are recorded on the principle that “from where they come from and back to where they come from”, such as turnover tax, income tax, and excise tax refunds received by producing enterprises, shall be credited to the profit or loss element at the time of the original tax calculation, and when producing enterprises entrusting foreign trade enterprises with the export of taxable consumer goods receive a refund, they shall also be credited to the accounts receivable at the time of taxation。
Value-added tax (vat), because it is an “ex-price tax”, is not appropriate to take back the proceeds of sales when the tax is refunded or returned, and is therefore required to be credited to the supplementary income。
Refundable excise taxes for the self-employed export of taxable consumer goods by foreign-trade enterprises, since the enterprise does not calculate the amount of excise tax paid, but the excise tax is paid by the producer and included in the purchase price, so that the excise should be calculated in such a way as to reduce the cost of selling the exported goods。
(ii) specific accounting treatment of tax returns
1. Value-added tax
In accordance with the requirements of the regulations and the notices, enterprises receive vat for immediate withdrawal, fortification and fortification and fortification, debiting “bank deposits” and crediting “subsidized income”。
2. Consumption tax
In accordance with statutory documents such as the regulations, the circular and the regulation of the ministry of finance on the accounting of consumption taxes (customs 83):
(1) the enterprise receives excise taxes and returns, debits “bank deposits” etc., and is credited to the “main operations tax and surcharges”, “property sales tax and surcharges”. (2) the excise tax of the producing enterprise, which entrusts the foreign trade enterprise with the export of taxable consumer goods, which is refunded in accordance with the rules, is credited to the “receivable subsidy” (company), “receivable account” (other enterprises) and to the “payable tax” and to the “bank deposit” and “receivable account”. (3) where consumer goods subject to tax are subject to reimbursement by foreign trade enterprises for their own export, the items “receivable subsidies” (company), “excise refunds” (other enterprises) are debited at the time of tax, and credited to the items “main operating costs” (company), “costs of sale of goods” (other enterprises) and, upon receipt of refunds, to the items “bank deposits” and “receivable subsidies” and “export refunds”。
3. Business tax
The regulations, the notices all require that enterprises receive returned turnover tax, debit “bank deposits” and credit “primary operations tax and surcharges”, “business tax and surcharges”, etc
4. Corporate income tax
Under the regulations, when the company actually receives the refunded income tax, it shall offset the current income tax charge, debit the “bank deposits” to the “income tax” subject。
The above-mentioned regulation is made in respect of limited companies and the manner in which other enterprises receive the income tax returned has not yet been found, but in relation to the regulation, the latter shall also be treated in the light of the regulation。
