secondly, the income from internal and external processing business should be accounted for separately. At present, in order to adapt to the development of market economy, enterprises often adopt a variety of business methods, which may be both import and export trade and production and processing business. This requires enterprises to distinguish the primary and secondary business, the main business is accounted for in "operating income", while the part-time business is accounted for in "other business income". Processing enterprises with materials have similar problems. For example, in order to make full use of existing equipment, processing enterprises with materials are engaged in both external processing and domestic processing, so they should separately account for internal and external processing. External processing fee income is exempt from value-added tax, while internal processing fee income is taxed. If the division is unclear, you cannot enjoy tax-free treatment. In addition, the income from the sale of waste materials by enterprises should be accounted for in "non-operating income" because it is not directly related to production and operation.
thirdly, the expenses paid by overseas clients should be included in the income according to the facts. At present, the processing fee income of domestic processing enterprises is generally low, and overseas clients often sign some agreements with domestic processing enterprises to pay part of the expenses (such as factory rent and customs declaration fees). For example, a garment factory suffered a total loss of 8.99 million yuan in 1997 and 1998, of which the processing fee income in 1998 was 72, yuan, and the total cost was 4.45 million yuan, accounting for only 16% of the expenses. The factory paid a salary of 3.12 million yuan but only got an income of 72, yuan, and it has been in this situation for 1 years since its establishment, but it can continue to operate. The reason is that overseas clients often pay the factory cash (RMB instead of foreign exchange) for daily expenses, and this part of cash is hung in the account of "other payables" instead of reflected in the income account, which shifts the income of enterprise processing fees in disguise, thus shifting profits and reducing taxable income. At the same time, due to the low income of processing fees, it also reduces the national foreign exchange income. Such expenses paid by foreign agents can be understood as extra-price subsidy income, which should be incorporated into taxable income to calculate and pay enterprise income tax.
(II) Accounting of expenses
First, the accounting of expenses should be detailed. Generally speaking, large processing enterprises can divide the expenses into "manufacturing expenses" and "management expenses". The expenses for production are included in the "manufacturing expenses", and the expenses for office management are included in the "management expenses". For small processing enterprises, all expenses can also be included in the "management expenses". For export expenses, such as supervision fees, commodity inspection fees, health inspection fees, billing fees, on-site inspection fees, hospitality fees, subsidies, etc., most enterprises put them into "customs declaration fees". In fact, this is not conducive to the financial analysis of enterprises, and the best way is to separate items. For example, some processing enterprises have a monthly customs declaration fee of several hundred thousand yuan, but the specific expenses are not clear, and the above problems do not exist if they are recorded separately. At the same time, health inspection fees and on-site inspection fees are charged according to the number of trains, while supervision fees and commodity inspection fees are calculated according to the value of materials. If the actual expenditure amount deviates greatly, we can check whether there are abnormal expenses, thus promoting enterprises to do a good job in financial analysis.
secondly, the input tax on the purchase of raw materials and accessories cannot be deducted, but should be accounted for separately and included in the cost. The main raw materials and most auxiliary materials of processing enterprises are imported through customs, and a small number of auxiliary materials are purchased from China. For materials purchased in China, even if a special VAT invoice is obtained, the input tax cannot be deducted, but can only be included in the cost. This is because, according to the current tax policy, all goods that are re-exported after processing with imported materials are subject to the "export tax exemption" management method, that is, the input tax (including the input tax of imported materials and domestic materials) is not deducted, and the final production and processing links are not taxed, and the export is not refunded. This is different from the import processing trade. Domestic materials used by import processing enterprises can apply for export tax refund (special VAT invoices must be obtained). Therefore, for the export enterprises engaged in the re-export business of processing with supplied materials, the input tax of taxed raw materials and auxiliary materials purchased for the production or processing of duty-free goods for re-export cannot be deducted and refunded, but should be accounted separately and transferred to the operating costs of processing with supplied materials. If the input tax of taxable and non-taxable items cannot be calculated separately, the input tax of raw materials consumed shall be shared according to the sales proportion.
II. Tax Preferences for Processing Enterprises with Materials
According to the Administrative Measures for Tax Refund (Exemption) of Export Goods, after the export enterprises import raw materials and spare parts duty-free in the form of processing with materials, they shall apply for the "Certificate of Tax Exemption for Processing with Materials" to the tax authorities in charge of export tax refund on the basis of the customs declaration form for imported goods processed with materials and the registration manual for processing with materials, and with this certificate, they shall declare to the tax authorities in charge of tax exemption for processing or entrusted processing. After the goods are exported, the export enterprise shall go through the verification procedures with the tax authorities in charge of export tax rebate on the basis of the export declaration form for processing with materials, the registration manual for processing with materials and the foreign exchange receipts that have been written off by the customs. For those that have not been written off within the time limit, the tax authorities in charge of export tax rebate will, jointly with the customs and the tax authorities in charge of taxation, timely pay back taxes and impose penalties.
iii. Specific operation of accounting and tax declaration. After the export declaration, the enterprise should confirm the income, debit the "accounts receivable", credit the "tax payable" and "processing fee income", and attach the copy of the "export goods declaration form" and "export foreign exchange verification form" to the accounting voucher. The customs declaration form for export goods must be provided when processing is completed and the case is closed to the customs, rather than the customs declaration form submitted to the SAFE (the fee income of the workers reported to the SAFE is not recorded). When an enterprise receives the income from the foreign exchange settlement of an agent importer or exporter, it debits the "bank deposit" and credits the "accounts receivable", and provides copies of the "bank receipt" and "bank foreign exchange exchange exchange certificate" related to the settlement. When making tax returns, enterprises should not only submit balance sheets, profit and loss statements and tax returns, but also provide the "Certificate of Tax Exemption for Processing Trade with Materials" issued by the competent export tax refund authority and a copy of the "Notice of Tax Exemption" issued by the competent tax authorities. For example, a garment processing factory belongs to a small-scale taxpayer, and the following businesses occurred in June: (1) On June 1th, 4,m of cotton combed fabric was imported, with a value of 22HKD, and 75kg of accessories such as zippers and buttons, with a value of 37HKD；; (2) On June 2th, 2 cotton children's trousers were exported, with a unit price of 8HKD and a total price of 16HKD. The income from labor payment was 2．75HKD each, totaling 55HKD (at the fixed market exchange rate of that year of 1: 1.1), and the site inspection fee paid at the time of customs declaration and export was 6 yuan, the health inspection fee was 4 yuan, the billing fee was 35 yuan and the dynamic inspection fee was 4 yuan. (3) On June 28th, pay the wages of workers 25, yuan, managers 5, yuan (the wages shall be paid in the same month), pay the meals 86 yuan, travel expenses 65 yuan, employees' medicine 47 yuan, utilities 5, yuan, equipment maintenance 2,78 yuan and factory rent 15, yuan. The accounting entries are as follows: (1) When importing raw materials on June 1th, no accounting treatment will be made, only raw materials will be recorded for future reference, and the date of imported goods and the balance of imported quantity will be registered. (2) On June 2th, after the export finished products are declared, the accounts receivable-foreign party's loan of 6,5 (55, HKD× 1.1): tax payable-VAT 3424.53 processing fee income-foreign processing 57,75.47 (with export declaration form and foreign exchange verification form attached) shall be used to register the quantity of raw materials consumed for each batch of goods. (3) Expenses paid for customs declaration and export on June 2th: Debit: manufacturing expenses-on-site inspection expenses 6-health inspection expenses 4-billing expenses 35-dynamic inspection expenses 4 loans: cash 175 (4) workshop expenses paid on June 28th: manufacturing expenses-water and electricity expenses 5-maintenance expenses 278-factory rent 15. Expenses-Meal expenses 86-Travel expenses 65 Loan: cash 151 (6) Welfare expenses paid on June 28th Loan: Welfare expenses payable-medicine expenses 47 Loan: cash 47 (7) Salary accrued on June 28th Loan: Management expenses 5 Manufacturing expenses 25 Loan: Payable wages 3 Payable wages: Borrowed: Payable wages 3. At the end of the provision of welfare funds, trade union dues, Additional borrowing for education expenses: manufacturing expenses 4375, management expenses 875, loans: welfare expenses 42, other payables-trade union expenses 6, education expenses 45 (9), tax and additional borrowing for education expenses at the end of the month: product sales tax and additional borrowing of 342.45, taxes payable-urban construction tax 239.72, other payables-additional borrowing for education expenses 12.73 (1), carried forward to manufacturing expenses. Entrusted processing cost 5233 loan: manufacturing cost 5233 (11) end-of-month carry-over income: processing fee income-external processing 5775.47 loan: this year's profit 5775.47 (12) end-of-month carry-over expenditure loan: this year's profit 657.45 loan: entrusted processing cost 5233 management fee 7358 product sales tax and surcharge 342.45 This is a project that only involves In July, the following business happened in this garment factory: (1) The processing fee income in June was declared on July 8; (2) On July 1th, a domestic factory provided cotton cloth worth 1, yuan, and entrusted the processing factory to process children's clothes. The garment factory purchased accessories worth 13 yuan and paid VAT of 221 yuan (all the accessories were collected in the same month); (3) On July 2th, a factory processed 95 finished children's garments, with the unit price of 2 yuan and the total price of 19 yuan. The processing fee for each piece was 3.5 yuan, and the processing fee receivable was 3325 yuan. (4) On July 26th, 15, pairs of children's trousers for export were submitted, with a unit price of 9HKD and a total price of ．135HKD, and the income from work payment was 3HKD each, with a total income of 45HKD (the fixed market exchange rate of that year was 1: 1.1); (5) On July 28th, I received 59,4 yuan from last month's work payment. (exchange rate of the day is 1: 1.8); (6) This month, the management cost is 25, yuan, and the manufacturing cost is 48, yuan; (7) On July 3th, the waste in the first half of the year was treated, and the income was 3, yuan. The accounting entries are as follows: (1) When filing tax returns on July 8, copies of the Tax Exemption Certificate for Processing Trade with Materials and the Tax Exemption Notice should be attached. Borrow: Taxes payable-VAT payable 3424.53-Urban construction tax 239.72 Other payables-Additional education fee 12.73 Loan: subsidy income 3766.98 (2) Borrow: Raw materials 1521 Loan: Cash 1521 Borrow: Entrusted processing cost-Accessories 1521 Loan: Raw materials. On the 2th, the processing fee income was collected for the processing of finished children's garments by A factory: accounts receivable-A factory's loan of 333,69: tax payable-value-added tax 1968.17 processing fee income-internal processing 31,367.92 1968.17 = (33,25+1,521)/(1+6%) × 6% 31,367 = 3. 82 Loan: Taxes payable-urban construction tax 137.77 Other payables-education surcharge 59.5 When reporting next month, taxes and surcharges accrued for internal processing shall be paid. (4) Customs declaration for export of children's wear and trousers on July 26th: Accounts receivable-foreign party's loan of 49,5 (45, HKD× 1.1): tax payable-value-added tax of 281.89 processing fee income-foreign processing of 46,698.11 (with export declaration form and copy of foreign exchange settlement form attached): debit: product sales tax and surcharge of 28.19. (5) On July 28th, I received last month's work payment income: debit: bank deposit of 594 (55HKD×1．8), financial expenses-exchange gains and losses of 1,1, credit: accounts receivable-foreign party's 6,5 (with the original bank bill attached, Copy of bank's foreign exchange certificate) (6) Expenditure this month: borrowing: administrative expenses 25, manufacturing expenses 48, loans: cash 73, (7) Disposal of waste income: borrowing: cash 3 loans: non-operating income-waste income 283.19 payable taxes-VAT 169.81 (8) Withdrawal of taxes and surcharges: borrowing: non-operating. (9) End-of-month carryover of manufacturing expenses: entrusted processing costs 48, loans: manufacturing expenses 48, (1) End-of-month carryover of income: processing expenses income 78,66.3 Non-operating income 283.19 Posted income 3766.98 loans: this year's profit 84,663.2 (11) End-of-month carryover of expenses: this year's profit 76,114.99 loans: management expenses 25.