New policy for tax refund with excess tax credit

Hello everyone! Welcome to the tax lecture hall. I am Liu Yunmao, deputy director of the Goods and Labor Taxation Department of the State Administration of Taxation. In order to support the development of small and micro enterprises and manufacturing and other industries, boost the confidence of market entities, and stimulate the vitality of market entities, on March 21, 2022, the Ministry of Finance and the State Administration of Taxation jointly issued the "Regulations of the Ministry of Finance and the State Administration of Taxation on Further Increasing the Value-Added Tax Retention at the End of the Period" Announcement on the Implementation of the Tax Credit and Refund Policy (Announcement No. 14 of 2022 by the Ministry of Finance and the State Administration of Taxation, hereinafter referred to as "Announcement No. 14") clarifies the policy for tax credits and refunds for small and micro enterprises and manufacturing and other industries. At the same time, the State Administration of Taxation issued a corresponding "Announcement of the State Administration of Taxation on Collection and Administration Matters Concerning Further Strengthening the Implementation of the End-of-Period Value-Added Tax Refund Policy" (State Administration of Taxation Announcement No. 4 of 2022, hereinafter referred to as "Announcement No. 4" ) to clarify relevant collection and management issues. In order to facilitate the majority of taxpayers to better understand and enjoy the policy, here I will explain the key contents of the new policy on the 2022 excess tax refund and the hot issues that taxpayers are concerned about.

1. The main contents of the new policy on excess tax refund

This year’s new policy on excess tax refund has three major features: first, focusing on “small and micro enterprises and key supported industries”; second, “ Incremental reserve credits and existing reserve credits" will be withdrawn simultaneously; third, "institutional, one-time and phased" arrangements will be simultaneously implemented. Specifically, the new policy mainly includes two categories: First, the small and micro enterprise tax credit refund policy, that is, in 2022, the existing tax credits for qualified small and micro enterprises in all industries will be refunded in one go, and the incremental tax credits will be refunded on a monthly basis. The second is the tax credit refund policy for manufacturing and other industries, which applies to "manufacturing industry", "scientific research and technical service industry", "electricity, heat, gas and water production and supply industry", "transportation, warehousing and postal industry" Eligible enterprises in the six industries of "software and information technology services industry" and "ecological protection and environmental management industry" will receive a one-time refund of the existing tax credits and a full refund of the incremental tax credits on a monthly basis. Five issues are highlighted here:

First, expand the scope of the policy of monthly refund of incremental excess tax credits for advanced manufacturing industries to all small and micro enterprises and six key industries, and make it a policy long-term policy. Second, all eligible small and micro enterprises and enterprises in manufacturing and other industries will be refunded the existing retained tax credits formed before April 1, 2019. This existing tax refund policy is a one-time policy. The “one-time” here means that after the taxpayer obtains the existing excess tax refund, he will no longer have the existing excess tax credit. Third, the universal tax refund policy implemented in 2019 has set a tax refund threshold of "the incremental tax credit for six consecutive months is greater than zero, and the sixth month is no less than 500,000 yuan." This tax refund threshold will be phased out for micro-enterprises. Article 1 of Announcement No. 14 stipulates that the implementation period is before December 31, 2022. Fourth, the applicable subjects of the excess tax refund policy for small and micro enterprises and manufacturing industries include not only enterprises, but also individual industrial and commercial households that calculate taxes according to the general tax calculation method. Fifth, from the perspective of policy classification and conditions, there may be overlap in applicable subjects of the tax credit refund policy for small and micro enterprises and the tax credit refund policy for manufacturing and other industries. In other words, a certain taxpayer, such as a small and micro enterprise in the manufacturing industry, can both The tax refund policy for small and micro enterprises can also be applied to the tax refund policy for manufacturing and other industries. Taxpayers can choose to apply it independently, and the effect of the policy implementation is the same.

Second, the determination of the applicable subjects of the new tax refund policy

The first is the determination of six industries including manufacturing. The determination of taxpayers who are eligible for the excess credit tax refund policy in six industries, including manufacturing, continues the previous "subordinate" application principle of the advanced manufacturing industry's excess credit tax refund policy, and determines whether the taxpayer meets industry-related conditions based on the taxpayer's main business. , rather than determined by the industry in which the taxpayer is registered. In other words, as long as the total value-added tax sales of a taxpayer engaged in six industries including manufacturing account for more than 50% of the total value-added tax sales, it will meet the subject conditions of six industries including manufacturing. Three issues need to be emphasized here:

First, regarding the calculation range of sales proportion. The sales proportion is calculated and determined based on the sales volume for the 12 consecutive months before the taxpayer applies for tax refund. It should be noted that when calculating the sales ratio, the numerator of the calculation formula is the total value-added tax sales of the six industries. Second, regarding industry registration information.

For taxpayers whose six categories of income account for more than 50%, but the industry information registered by the taxpayer does not belong to these six industries, especially when a certain type of income among the six industries is the highest value of the taxpayer's various types of income, it is recommended to pay tax People should handle changes to industry registration information in a timely manner and in accordance with regulations. Third, the implementation of the tax refund policy for advanced manufacturing industry will be suspended. After the advanced manufacturing industry’s incremental excess tax refund policy was expanded to six industries including manufacturing, and tax refunds were implemented for the existing excess tax credits, the six industries including manufacturing industry’s excess tax refund policy has fully covered the previous incremental advanced manufacturing industries. Excess tax refund policy. Therefore, after the implementation of the New Deal, the advanced manufacturing industry’s incremental excess tax refund policy will also cease to be implemented.

The second is the classification standard for enterprise size. At present, there are two main classification standards announced by relevant departments: First, the "Classification Standards for Financial Industry Enterprises" issued by the People's Bank of China and five other departments, which classify financial industry enterprises based on one indicator of "total assets". The second is the "Standard Regulations for the Classification of Small and Medium-sized Enterprises" issued by the Ministry of Industry and Information Technology and other four ministries and commissions, which uses one or a combination of two indicators from the three indicators of "operating income", "total assets" and "employees" to classify 16 types of industries respectively. Carry out patterning. In addition, there are six types of industries such as "education" and "health" that are not included in this classification standard.

In order to effectively ensure the implementation of the excess tax refund policy and adhere to the principles of unified standards and full coverage, the excess tax refund policy adopts the two criteria of "operating income" and "total assets" among the above two standards. indicators to determine the size of the enterprise. At the same time, for industries that do not have "operating income" or "total assets" indicators in the two standards, as well as industries that are not included in the classification of the two standards, the classification standards are clarified as follows: The micro enterprise standard is value-added tax sales (annual ) below 1 million yuan (excluding 1 million yuan); the standard for small enterprises is VAT sales (annual) below 20 million yuan (excluding 20 million yuan); the standard for medium-sized enterprises is VAT sales (annual) 100 million yuan Below (excluding 100 million yuan).

Three issues are emphasized here: First, the total assets indicator is determined based on the end-of-year value of the taxpayer’s previous fiscal year. Second, the operating income indicator is determined based on the taxpayer’s value-added tax sales in the previous fiscal year. Value-added tax sales include tax declaration sales, audit sales, and tax assessment adjustment sales. If the value-added tax difference tax policy applies, the sales volume after the difference will be determined. Third, in the application of classification indicators in the "Standard Regulations for Classification of Small and Medium Enterprises", some need to meet two indicators at the same time, and some only need to meet one of the indicators. Taxpayers should consider the different national economic industries in which they are located. The corresponding stroke indicators apply.