22-year Cultural Undertakings Construction Expenses—policy review, calculation and application, and scope of application are all covered in one article~~

Hi, everyone, today’s topic comes from a question from Sister Wan Wan from Yangzhou, Jiangsu Province in “Qianying Yashe-Chajiuxuan (Finance and Taxation Hotspot Group)”. She said that their company does lighting For those who provide design services, do they need to pay cultural undertakings construction fees? Let’s talk about the cultural undertakings construction fees together with questions.

I remember that as early as 2020, the National Taxation and Ministry of Finance issued Regulation No. 25 of 2020, which exempted cultural undertaking construction fees from January 1, 2020 to December 31, 2020. Later, due to the epidemic expansion, and then continued to implement some preferential tax policies in response to the epidemic in the 2021 Ministry of Finance and State Administration of Taxation Announcement No. 7 of 2021, and extended the implementation period for cultural undertaking construction fees to December 31, 2021. By 2022, cultural undertaking construction Are the fees exempted or not? So what is the cultural undertaking construction fee? In fact, not all enterprises are involved. To put it simply, this fee is a government fund levied on the advertising and entertainment industry since 1997, and is collected by the tax authorities. Let’s talk about what businesses involve cultural undertaking construction fees. First of all, let me remind you that cultural undertaking construction fees may be involved whether you are a small-scale taxpayer or a general taxpayer. It depends on the scope of your collection and not on whether you are a small and micro enterprise. This is related to the judgment of exempting cultural undertaking construction fees. It’s different, we’ll talk about it later. First of all, according to the advertising media units and outdoor advertising business units that "provide advertising services" stipulated in Finance and Taxation No. 25 of 2016; the units and individuals that "provide entertainment services" stipulated in No. 60 of Finance and Taxation. So the scope of taxation for the advertising service industry here does not include natural persons, but the entertainment service industry does include natural persons. This is the reason why the two announcements were written separately. The scope of payment of cultural undertaking construction fees is actually very clear. He based his judgment on the scope of advertising services and entertainment services in the "Sales Services, Intangible Assets, and Real Estate Notes" No. 36 of 2016 of the Ministry of Finance and Taxation. Take a look at the pictures for the scope involved, I won’t go into details here.

After reading this scope, everyone’s minds must be confused. In order to avoid some confusion, I have listed some situations in which cultural undertaking construction fees are not required to be paid, including but not limited to the following, only For reference: advertising production, if the actual form of marketing and promotion services is exhibition services, providing conference services; advertising design that is accounted for separately (except where advertising design and advertising services are mixed and advertising design is not accounted for separately); provision of travel services; Advertising creative planning; advertising installations that are accounted for separately (except for advertising installations and advertising services that are sold mixedly and advertising installations are not accounted for separately); celebrity publicity and endorsements (online live broadcasts belong to the provision of radio, film and television services, and if they are live broadcasts with goods, they are not taxed; If it is live advertising and entertainment, it needs to be levied); for performances in rural areas or store celebrations; for advertising consultation; for text printing and pictures of advertising products; for advertising planning. After talking about the scope, let’s see what discounts are available. According to Article 7 of the Finance and Taxation No. 25, 2016, among small-scale VAT taxpayers, enterprises with monthly sales of no more than 20,000 yuan (tax payment of 60,000 yuan on a quarterly basis) and Taxable services provided by non-enterprise entities are exempt from cultural undertaking construction fees; and Finance and Taxation No. 60 of 2016 stipulates that payers who have not reached the value-added tax threshold are exempt from cultural undertaking construction fees. The exemption here must be for small-scale taxpayers, and general taxpayers are not exempt. There is also a provision that stipulates that from July 1, 2019 to December 31, 2024, cultural undertaking construction fees will be halved for centrally-affiliated enterprises and institutions according to Finance and Taxation Regulation No. 46 of 2019, and the provinces (autonomous regions and municipalities) are authorized to This fee will be reduced for local enterprises, institutions and individuals within a range of 50%. At this point, the above-mentioned regulations are currently implemented, and the document on cultural undertaking construction fees in 2022 has not yet been released. After talking about discounts, let’s talk about how to calculate the amount of cultural undertaking fees payable.

In fact, the formula is very simple, that is, the billed sales are multiplied by 3. What we should pay attention to here is the caliber of sales: first, the billed sales are all the tax-included prices and extra-price expenses obtained. It is not calculated using the accounting method. The income data is calculated differently from the sales volume in the VAT return. The sales volume here is the tax-included price. Second, if the unit providing advertising services obtains a legal deduction certificate, the difference can be collected, that is, the balance after deducting the "tax-included" advertising publishing fees paid to other advertising companies or advertising publishers. Another thing to remember here is that the entertainment industry cannot be differentially levied. Let’s take an example to deepen our understanding: Company A is a general taxpayer. It completed a 1 million advertising business in August last year and issued a special invoice for value-added tax, which was paid to the advertising publisher Company B that month. The publishing fee is 300,000, and the invoice given is a special invoice. The publishing fee paid to Company C is a general invoice of 50,000. How does Company A calculate the value-added tax and cultural undertaking construction fees? Analysis and answer process: The value-added tax issued by Company A The invoice involves advertising business, and the value-added tax rate is 6. Then the output tax amount of the value-added tax should be 1 million divided by 1.06 times 6, which equals 56,603.77 yuan. The input tax on the special invoice obtained from Company B is 300,000 yuan divided by 1.06 times 6 Deng Yi 16,981.13 yuan. The VAT invoice obtained from Company B cannot be deducted, so the VAT payable by Company A this month is 56603.77 minus 16981.13, which equals 39622.64 yuan. So how is the cultural undertaking construction fee calculated? The analysis is as follows: Company A’s advertising revenue this month totals 1 million before tax, and the advertising publishers B and C get the total price and tax of 300,000 and 50,000 respectively. Then our The billed sales volume is 100 minus 30 minus 5 which equals 65, and the cultural undertaking construction fee payable is 650,000 times 3 which equals 19,500. Then according to the preferential policies of Finance and Taxation No. 46 of 2019, assuming that both the central and local governments are 50, the actual amount of compensation payable in the current period is 19,500 times 50 times (1 minus 50) 19,500 times 50 times (1 minus 50), why is it calculated like this here? 50 is the tax reduction ratio, and each of them accounts for 50. We only need to pay a fee of 50. Of course, this calculation will be calculated directly by the system when you declare. The specific calculation is reflected in the 18th line of the report. The specific calculation formula is: 18 = 10 × proportion of central income attributable × (1- 50) 10×proportion of income attributable to local areas×(1-tax reduction ratio of income attributable to local areas)-the amount of prepayment for the current period in line 13. Of course, if you are charged the difference, then you need to fill in the "List of Taxable Service Deduction Items" one by one based on the valid vouchers for obtaining the deduction items. It is used as an attachment to the declaration form and needs to be submitted at the same time when making the declaration. The specific filling is as follows, I will not elaborate in detail. If you are watching the video version, you can pause it or find the text link, which will be more intuitive.

As for the entries for cultural undertakings construction fees, when calculating the payable, debit: taxes and surcharges, credit: taxes payable - cultural undertakings construction fees payable; in fact, the amount paid At that time, debit: taxes payable - cultural undertaking construction fees payable, loan: bank deposit is enough. In addition, I would like to say a few words about the issuance of invoices. The above example is about a single advertising business. In practice, the business includes design, production, and installation. Assuming that the design component accounts for a small proportion, then according to the General Administration Announcement No. 11 of 2017, which belongs to the sale of self-produced goods while providing installation services, should account for the sales of production and installation services separately, and apply different tax rates or levy rates respectively. Therefore, it is a concurrent operation of sales and installation, and the invoice The bill should be issued in two lines, the first line is for *metal products*billboard production, with a tax rate of 13 (or levy rate of 3), and the second line is for *construction services*billboard installation, with a tax rate of 9 (or levy rate of 3).

If the proportion of design is large, such as engineering design, which is a mixture of design services and installation services, then the value-added tax will be paid according to the design services from the main business, with a tax rate of 6 (or a collection rate of 3). Have you lost your knowledge? Finally, in Let’s summarize the key points mentioned above: 1. Advertising planning, design, production, consulting, conferences and exhibitions, and text printing and pictures of advertising products do not need to pay cultural undertaking construction fees. 2. Artistic performances, cultural activities, sports performances, and cultural and entertainment services organized and arranged by travel companies at the request of tourists are not entertainment services and do not fall within the scope of collecting cultural undertaking construction fees. 3. The difference is levied on the advertising service industry and the full amount is levied on the entertainment service industry. 4. The scope of taxation for the advertising service industry does not include individuals, but the entertainment service industry does. .