@fatherpayer friend, did you finish your 2024 corporate income tax check? Between 1 january and 31 may 2025, taxpayers were required to settle corporate income tax remittances for 2024. Payers who have not yet done so are asked to do so quickly! The tax authorities continue to provide the taxpayer with the service of in-mission risk alert. How should we respond to these doubts in order to prevent the risk of taxation? I've been combing nine common questions today, and i hope it will help you。
1.
My company is an electronic smoke producer, and in 2024, when research and development costs were incurred, could it benefit from the r & d plus deduction policy
Response: according to the circular of the ministry of finance, the national tax administration, the ministry of science and technology on the refinement of the policy on the deduction of research and development costs before taxing them (fiscal (2015)) no. 119) stipulates that the industries in which r & d costs are not applied and deductions are tobacco manufacturing, accommodation and catering, wholesale and retail trade, real estate industry, rental and business services, entertainment industry, ministry of finance and other industries under the national tax administration authority。
The national statistics office has clarified that enterprises producing electronic smoke are in the tobacco industry. As a result, e-smoking enterprises are not required to apply r & d deductions。
2.
Our company has a creative design activity this year. Can we get a discount on r & d costs? How should remittance declarations be completed
Response: according to the circular of the ministry of finance, the national tax administration, the ministry of science and technology on the refinement of the policy on the deduction of research and development costs before taxing them (fiscal (2015)) (no. 119) provides that the costs associated with creative design activities carried out by enterprises to acquire innovative, creative and breakthrough products may be deducted before tax under this circular。
Creative design activities are the development of multimedia software, animation games software, digital animation, game design; architectural design of buildings (the green building evaluation standard is tristar); landscape garden engineering design; industrial design, multimedia design, animation and derivative product design, model design, etc。
Please note the distinction between r & d activities and creative design activities, and do not duplicate the benefits of the r & d costs plus deductions。
When the annual corporate income tax returns are filled in, the cost of creative design activities is increased by the deduction of the benefit, and the taxpayer, in line 22 of the main reporting form, according to the catalogue of business income tax reporting, “exempt, reduced income and added deductions” is added by the deduction of the amount of the benefit。
3.
Can the amounts stated in the “loss of impairment of assets” in the master and tax adjustment schedules be inconsistent
Response: under the law of the people's republic of china on enterprise income tax, unapproved expenditure on reserves is not deducted from the calculation of taxable income。
This means that, with the exception of financial enterprises, “loss of impairment of assets” should be matched with the amount and tax adjustment on the master and tax adjustment schedules。
The general tax administration has amended the annual corporate income tax returns, and losses in the 12th and 13th rows of the main enterprise income tax returns are entered in the number “-”。
I'm sorry.
My company is engaged in agriculture, forestry, livestock and fishing, and which projects are eligible for income tax relief from the enterprise? How do you fill out the annual corporate income tax returns
Response: according to the law of the people's republic of china on income tax for enterprises, income from the activities of enterprises in the fields of agriculture, forestry, livestock and fisheries is exempt from and reduced from the income tax of enterprises。
The fourth column, “project income”, covers the total amount of income earned under the income tax relief granted to enterprises。
The fifth column, “project costs”, covers the total costs incurred for the benefit of the enterprise income tax credit。
Column 6 “providing taxes and fees” covers the total amount of taxes and fees actually incurred for the benefit of the enterprise income tax credit, including taxes and their surcharges in addition to the enterprise income tax and the value added tax allowed for deductions, fees for contracting, fees for lawyers, etc。
The seventh column, “pattern to be apportioned”, states the total amount of the reasonable share of the costs of the income tax credit received from the enterprise. A reasonable share may be determined on the basis of parameters such as investment, sales income, assets, salaries, etc., and may not be changed at will。
Column 8 “tax adjustments” states that taxpayers are required to adjust the amount of income, costs, expenses of tax-exempt items in accordance with tax provisions, and tax deductions are entered in the “-”。
5.
My company's a branch. Can i benefit from the small microenterprises alone
An enterprise income tax is a corporate tax system, according to the general state tax administration bulletin on the implementation of income tax preferences for small microenterprises (general state tax administration bulletin no. 6 of 2023), if an enterprise establishes branches that do not have legal personality, it shall aggregate the number of persons engaged, the total amount of assets, the annual taxable income of the general institution and its branches, and determine whether the conditions for small microenterprises are met on the basis of aggregate figures。
6.
My company is a foreign trade company, and at what point should the income from the export declaration be recognized for the business income tax
Response: according to the circular of the state tax administration on certain issues regarding the recognition of income tax revenues of enterprises (state tax letter) (no. 875) provides that an enterprise shall recognize the realization of income if the sale of the goods is accompanied by:
A contract for the sale of goods has been concluded and the enterprise has transferred the main risks and rewards associated with ownership of the goods to the purchaser
(b) businesses do not retain the right to continue to regulate and exercise effective control over the goods sold, which are usually linked to ownership
The amount of income can be reliably measured
The costs incurred or to be incurred by the seller can be reliably accounted for。
For example, when the seller and buyer settle at a fob price, the seller delivers the goods to the ship designated by the buyer at the designated port of shipment, or obtains proof of delivery to the ship and gives notice to the buyer, the risk of loss of or damage to the goods shifts when the goods are delivered to the ship, while the seller is responsible for the export clearance. In the above case, the seller should use the date of export on the export declaration as the revenue recognition point。
7.
How should we deal with the financial funds that my company has acquired in previous years and that qualify for non-taxable income after five years
Response: according to the circular of the ministry of finance of the general state tax administration on the treatment of income taxes of enterprises with special purpose financial funds (customs no. 70), the portion of fiscal funds that meet the prescribed conditions, after treatment of non-taxable income, which has not been incurred within five years (60 months) and has not been paid back to the financial sector or other government departments that have disbursed the funds, shall be included in the total taxable income for the sixth year of receipt of the funds; expenses incurred in fiscal funds which are included in the total taxable income shall be allowed to be deducted in the calculation of the taxable income。
8.
Do we need to remove the projected net residual value when we get a one-time tax credit for equipment equipment purchased this year
Response: the bulletin of the national tax administration on the implementation of the enterprise income tax policy on the deduction of equipment and equipment (official gazette no. 46 of 2018) provides:
New equipment, appliances and equipment purchased by an enterprise with a unit value of not more than 5 million yuan are allowed to be deducted from the calculation of the taxable income at a one-time cost. Fixed assets are deducted prior to the annual lump-sum tax that follows the month in which they are put into service. The tax treatment of an enterprise's assets may be inconsistent with the accounting treatment when it chooses a one-time tax deduction policy。
In order for enterprises to fully reap the dividends of tax incentives, enterprises may benefit from such preferences without regard to the projected net residual value of equipment purchased and equipment expected in their accounting。
9.
My company invests in partnerships, foreign firms, and can the dividends from the investors benefit from tax-exempt earnings
Article 83 of the regulations for the implementation of the income tax law of the people's republic of china on enterprises provides that the return on an investment of interest, such as dividends, dividends, etc., between eligible resident enterprises, referred to in article 26, paragraph 2, of the income tax law on enterprises, means the return on an investment of a resident enterprise directly investing in another resident's enterprise。
The return on equity investments, such as dividends, dividends, etc., referred to in article 26, subparagraphs (b) and (c), of the law on income tax for enterprises does not include the return on investment for less than 12 months of publicly issued shares of continuously held resident enterprises。
A partnership, a foreign enterprise, is not an enterprise with income tax. Thus, taxpayers cannot benefit from tax-exempt income benefits in the form of dividends from partnerships or foreign enterprises。
Contributions: ii-jun
