From March 1
Personal income tax reform since the first final settlement officially began
A word of warning:
Enterprise income tax final settlement May 31!
Personal income tax final settlement June 30!
Here, Fintegrity focuses on the final settlement of corporate income tax. What Tax incentives are in place for 2019? What changes have taken place in the enterprise income tax final settlement return? There are so many reports. What should I fill in and what shouldn't I fill in? Wait, there's no room for any negligence in a series of preparations! For the enterprise income tax final settlement, we mainly talk about how to make up for the loss? Policy basis
1. According to article 18 of the enterprise income tax law of the People's Republic of China, the losses incurred by an enterprise in the tax year are allowed to be carried forward to the following year and made up with the income of the following year, provided that the carrying forward period shall not exceed 5 years.
2. In accordance with the provisions of article 1 of the notice on the extension of the carryover period for losses of high-tech enterprises and small and medium-sized technology-based enterprises (no. 76 [2018]) :As of January 1, 2018, if an enterprise is qualified as a high-tech enterprise or a technology-based small and medium-sized enterprise (hereinafter referred to as the qualification) in the current year, the losses incurred in the five years prior to the qualifying year, which have not yet been made up, are allowed to be carried forward to the next year. The longest carrying forward period is extended from 5 years to 10 years.
3. According to the notice of taxation policy of The State Administration of Taxation of The Ministry of Finance on supporting the prevention and control of pneumonia epidemic caused by novel coronavirus (announcement of The State Administration of Taxation of The Ministry of Finance no. 8 of 2020), the maximum carrying forward period of the losses incurred in 2020 by enterprises in difficult industries greatly affected by the epidemic shall be extended from 5 years to 8 years.
Fintegrity looks at hot issues——
What is a loss in the Tax Law? Article 10 of the regulations for the implementation of the enterprise income tax law provides that the term "loss" as mentioned in article 5 of the enterprise income tax law refers to the amount less than zero after the deduction of the tax-free income, tax-free income and various deductions from the total income of an enterprise in each tax year in accordance with the provisions of the enterprise income tax law and these regulations.
Is the preparation period a loss year? According to article 7 of the notice of the state administration of taxation on certain tax issues concerning the implementation of the enterprise income tax law (guo shuixin [2010] no. 79), the year in which an enterprise commences production and operation shall be the year in which the profit and loss of the enterprise shall be calculated. Enterprises engaged in production and business operation before preparing expense that may occur during the course to organise activities may be calculated as the current losses, shall be in accordance with the taxation guoshuihan [2009] no. 98, article 9 of the regulations, the business can start from the date of the one-time deduct, can also be used as a long-term prepaid expenses not less than three years for deduction.
When the enterprise is liquidated, can it cover the previous year's loss? According to the "notice of the state administration of taxation of the ministry of finance on several issues concerning the handling of enterprise income tax in enterprise liquidation" (caishui [2009] no.
Can the legal partner of the partnership use the loss of the partnership to offset its profit? According to article 5 of the notice of the state administration of taxation of the ministry of finance on the income tax of partnership partners (caishui [2008] no. 159), "if the partners of the partnership are legal persons or other organizations, the losses of the partnership shall not be used to offset the profits when calculating the income tax paid by the partners.
Can the domestic and foreign losses of the enterprise be made up for each other? According to the provisions of article 17 of the enterprise income tax law, when an enterprise collects and calculates the payment of enterprise income tax, the losses of its overseas business organizations shall not be deducted from the profits of its domestic business organizations. According to the state administration of taxation's "operation guide for tax credit for overseas income of enterprises", domestic enterprises are allowed to make up for their losses with overseas income. In addition, according to the notice of the state administration of taxation of the ministry of finance on improving the tax credit policy for overseas income of enterprises (caishui [2017] no.
Three reminders from Fintegrity about making up for lost money—— 1.The checked amount of taxable income can cover the loss 2.The period of enterprise preparation shall not be counted as a loss year 3.Make up for the loss during the period when the production and operation is stopped by policy relocation
The annual corporate income tax final settlement, is a big test for financial personnel. For both Fintegrity's CFO service and every financial personnel, the final settlement of corporate income tax is very important, which best reflects the professional ability of financial personnel. Although the remittance work is completed at the end of may, it is suggested that enterprises declare as early as possible on an accurate basis, rather than concentrate on the declaration in mid-to-late may.
About final settlement, Fintegrity remind again!!
1.Prepare accounting statements according to the national unified accounting system 2.Prepare the relevant documents for future reference against the preferential tax policies 3.Prepare data and data related to tax payment adjustment against tax policies
4.Accurately and completely carry forward the annual tax payment adjustment in accordance with the tax policy
5.Check and improve the pre-tax deduction voucher
6.Correctly select the applicable annual return
