9 Answers to Practical Questions of Finance and Taxation (February 4, 221)

question 1: how can a natural person judge the labor remuneration and business income when issuing invoices on his behalf?

Answer:

Administer taxes according to law, and administer according to law. Of course, judgment can only be based on legal provisions.

1. Judging according to law

Article 6 of the Regulations for the Implementation of the Individual Income Tax Law has provisions on "income from remuneration for labor services" and "income from business operations":

(2) Income from remuneration for labor services refers to income obtained by individuals engaged in labor services, including design, decoration, installation, drawing, testing, medical treatment, law, accounting and consulting.

(5) Operating income refers to:

1. Income obtained by individual industrial and commercial households engaged in production and business operations, and income obtained by investors of sole proprietorship enterprises and individual partners of partnership enterprises from production and business operations of sole proprietorship enterprises and partnership enterprises registered in China;

2. Income obtained by individuals from running schools, medical care, consulting and other paid service activities according to law;

3. Income obtained by individuals from contracting, leasing, subcontracting or subletting enterprises and institutions;

4. Income obtained by individuals from other production and business activities.

from the above provisions, it can be distinguished in most cases that individuals can provide services. If "income from remuneration for labor services" is not listed in the scope, it should be "income from business operations" or income from other projects in most cases.

For example, our common construction services and transportation services are not included in the "income from labor remuneration", but need to be taxed according to "business income".

article 3 of Guo shui fa [1996] No.127 stipulates that individual industrial and commercial households engaged in the construction and installation industry, construction and installation teams and individuals who have not obtained business licenses to undertake the engineering operations of the construction and installation industry, and construction and installation enterprises whose industrial and commercial registration is changed to the nature of individual economy after individual contracting, shall be subject to individual income tax according to the production and business income items of individual industrial and commercial households.

II. Practical operation

In practice, if a natural person issues invoices on behalf of him, if he does not apply for tax registration (including temporary tax registration), the tax bureau will default to "income from labor remuneration", and the value-added tax and its additional taxes will be levied if it exceeds the 5 yuan tax bureau, and the personal income tax bureau will not withhold and remit it according to the "income from labor remuneration".

if a natural person has gone through the tax registration (including temporary tax registration) and applied for issuing an invoice for labor expenses, the tax bureau will default to "business income", and the tax bureau will only collect value-added tax and its additional taxes if the monthly income exceeds 1, yuan, and the personal income tax bureau will collect it according to the "business income".

if a natural person does not apply for tax registration (including temporary tax registration), but wants to issue invoices for construction services and transportation services, the general tax hall will ask for temporary tax first, and then collect personal income tax according to the "business income". Of course, it does not rule out that some tax hall managers do not know much about the policy, and those who apply for invoices for construction services and transportation services are directly invoiced as "labor fees".

question 2: what taxes should be withheld for commissions paid by domestic units to foreign countries?

answer:

1. VAT and its additional taxes and fees need to be withheld

According to Caishui (216) No.36, domestic units need to withhold VAT when they pay commissions to overseas enterprises or individuals.

commission is the remuneration of the brokerage agent.

according to the provisions of caishui (216) No.36, brokerage services are within the taxable scope of value-added tax. Where VAT taxable services occur in China, VAT needs to be paid.

At the same time, Article 12 of Annex 1 of Caishui (216) No.36 stipulates that the sale of services, intangible assets or real estate in China means: (1) the seller or buyer of services (excluding leased real estate) or intangible assets (excluding the right to use natural resources) is in China; ... that is to say, as long as one of the sellers or buyers of services is in China, it is considered as selling services in China.

Therefore, even if overseas enterprises or individuals provide services overseas, they are still "selling services in China" and need to pay VAT.

according to article 6 of annex 1 of caishui (216) No.36, if the Chinese people * * * and overseas (hereinafter referred to as overseas) units or individuals have taxable activities in China, and there is no operating institution in China, the buyer shall be the VAT withholding agent. Unless otherwise stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.

additional taxes and fees: before September 1, 221, additional taxes and fees, including urban construction tax and education surcharge, need to be calculated and withheld according to the actual value-added tax withheld.

II. It may not be necessary to withhold income tax

(1) Enterprise income tax

If an overseas enterprise or organization does not enter the country during the provision of services and there is no establishment in China, the place where the labor service takes place is overseas, and the income of a non-resident enterprise does not originate in China, so there is no tax obligation and domestic units do not need to withhold it.

if an overseas enterprise or organization does not provide entry services during the service period, or has an institution in China and its income is related to it, the income of the non-resident enterprise comes from China, and the domestic unit needs to withhold the enterprise income tax according to law.

if an overseas enterprise or organization has a permanent establishment in China, and the service is related to the permanent establishment and belongs to the income from China, the domestic unit does not need to withhold the enterprise income tax, and the permanent establishment should declare and pay the enterprise income tax by itself.

(II) Personal income tax

If an overseas non-resident individual does not enter the country during the service period, it belongs to income from overseas and does not need to pay taxes to the China government; If you have entered the country for service during the service period, it belongs to income from domestic sources, and the payer needs to withhold personal income tax (income from remuneration for labor services).

if an individual who provides services abroad is a resident individual, he/she needs to pay taxes to the China government regardless of whether he/she enters the country during the service period, and the payer needs to withhold personal income tax according to law.

question 3: is it necessary to withhold and remit the enterprise income tax on the house rent paid by domestic companies to Hong Kong?

Answer:

1. The rent paid by domestic enterprises belongs to the income from China

According to Article 7 of the Regulations for the Implementation of the Enterprise Income Tax Law, the income from sources inside and outside China mentioned in Article 3 of the Enterprise Income Tax Law shall be determined according to the following principles: ... (5) Income from interest, rent and royalties shall be determined according to the location of the enterprise, institution or place that bears and pays the income. Therefore, domestic companies pay rent, and the domestic companies are located in China. No matter where the houses of Hong Kong enterprises are actually located, their rental income belongs to the income from China, and they should pay enterprise income tax in China according to law ...

II. Does the overseas enterprise have a permanent establishment to decide whether to withhold the enterprise income tax

(1) If there is a permanent establishment-No withholding

Paragraph 2 of Article 3 of the Enterprise Income Tax Law stipulates that if a non-resident enterprise establishes an institution or place in China, it shall obtain the income from its established institution or place in China, as well as the income that occurs outside China but is actually related to its established institution or place.

the enterprise income tax law and its implementing regulations do not stipulate a special withholding agent for the above-mentioned permanent establishment, and the permanent establishment should be used as the taxpayer to declare on its own, without withholding by the payer.

(II) Without a permanent establishment-withholding is required

As stipulated in the third paragraph of Article 3 of the Enterprise Income Tax Law, if a non-resident enterprise does not have an institution or place in China, or if it has an institution or place, but its income has no actual connection with its established institution or place, it shall pay enterprise income tax on its income originating in China.

article 37 of the enterprise income tax law stipulates that the income tax payable by a non-resident enterprise from the income specified in paragraph 3 of article 3 of this law shall be withheld at the source, with the payer as the withholding agent. The tax shall be withheld by the withholding agent from the amount paid or due each time it is paid or due.

question 4: the value-added tax has been left over in the previous period, so it will be accrued in this period. How to carry it forward and write entries after it is paid next month?

Answer:

Accrued in this period should be the output tax.

Borrowing: bank deposits, etc.

Loaning: main business income, etc.

Taxes payable-VAT payable (output tax)

Carry-over at the end of the month:

Borrowing: Taxes payable-VAT payable (transferred out without VAT)

Lending: Taxes payable-VAT unpaid

Actual payment in the next month:

Answer:

According to the Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policies for Venture Capital Enterprises and Angel Investment Individuals (Caishui [218] No.55) and the Notice of the Ministry of Finance and the State Administration of Taxation on Implementing Inclusive Tax Relief Policies for Small and Micro Enterprises (Caishui [219] No.13), start-up technology-based enterprises must meet the following conditions at the same time:

1.

2. When accepting investment, the number of employees shall not exceed 3, among which the number of employees with bachelor degree or above shall not be less than 3%; Total assets and annual sales revenue are not more than 5 million yuan;

3. It shall be established within 5 years (6 months) when accepting the investment;

4. Not listed on domestic and foreign stock exchanges at the time of investment acceptance and within 2 years after investment acceptance;

5. In the year of investment acceptance and the next tax year, the proportion of total R&D expenditure to cost expenditure shall not be less than 2%.

question 6: how to judge whether a venture capital enterprise can enjoy preferential tax policies for venture capital enterprises?

A venture capital enterprise invested in a start-up technology-based enterprise with 26 employees, total assets of 4 million yuan and annual sales income of 1 million yuan in March 218. Can it enjoy preferential tax policies for venture capital enterprises in 22?

Answer:

Caishui [219] Document No.13 specifies that the investment occurred within two years before January 1, 219, and the investment has been completed for two years since January 1, 219, and it meets other conditions stipulated in Caishui Document No.13 and Caishui [218] Document No.55, so the tax policy stipulated in Caishui Document No.55 can be applied. The investment time mentioned is March 218, which belongs to the investment that occurred within two years before January 1, 22. If it meets other conditions stipulated in Caishui [219] No.13 and Caishui [218] No.55, it can enjoy preferential tax policies for venture capital enterprises from 22.

question 7: how to calculate the personal income tax for the equity reward given to technicians by high-tech enterprises in transforming scientific and technological achievements?

Answer:

When an individual receives an equity reward, the tax payable shall be calculated and determined according to the item of "salary and salary income". Before December 31, 221, it will not be incorporated into the comprehensive income of the current year, and the comprehensive income tax rate table will be applied in full to calculate the tax. The equity incentive policy after January 1, 222 will be clarified separately. The calculation formula is:

tax payable = equity incentive income × annual applicable tax rate-quick deduction

If an individual resident obtains more than two (including two) equity incentives in a tax year, the tax payment shall be calculated according to the above provisions.

question 8: what conditions should be met for the "right to collect money for the performance obligations accumulated so far during the whole contract period" in the income confirmed by the time period method? (new income criterion)

Answer:

During the whole contract period, the enterprise has the right to collect money for the performance obligations accumulated so far (hereinafter referred to as qualified collection right), which means that in the case of termination of the contract due to customers or other parties, the enterprise has the right to collect money to compensate its incurred costs and reasonable profits for the performance parts accumulated so far, and this right is legally binding. The qualified payment right should meet the following four conditions at the same time:

First, the termination of the contract must be caused by the customer or other parties, not the enterprise itself;

second, the amount that the enterprise has the right to collect should be roughly equivalent to the selling price of the goods that have been transferred to customers so far, and the amount should compensate the cost and reasonable profit that the enterprise has already incurred, and the reasonable profit of compensation does not necessarily have to be equal to the overall gross profit level of the contract;

Third, this right is legally binding, which should take into account not only the provisions of the contract, but also the applicable laws and regulations, and the previous judicial practice, judicial interpretation and the results of similar cases that supplement or override the legal contract terms.

fourthly, the enterprise shall have this right at any time during the whole contract period. The right of qualified payment does not mean that the enterprise needs the right of unconditional payment during the whole contract period. However, during the whole contract period, when the contract is terminated due to customer reasons, the enterprise needs to have the executable right to collect money for the accumulated performance part that has been completed so far.

Question 9: The author adapted his own novel, then recorded the novel as audio and put it on the network platform. The customers listened to the income generated by the novel through the third-party platform, and the platform company shared it with the author. What is the tax on personal income tax?

Answer:

According to the description, the author owns the complete intellectual property rights (copyright) of the novel audio, and authorizes the third-party platform company to sell the broadcasting rights to the outside world. The income obtained belongs to the "royalty income", which should be taxed according to the "royalty income" and withheld and remitted by the platform company.