1. According to Article 7 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC), 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:
(a) the income from the sale of goods shall be determined according to the place where the trading activities take place;
(2) The income from providing labor services shall be determined according to the place where the labor services occur;
(3) Income from property transfer, income from real estate transfer shall be determined according to the location of real estate, income from movable property transfer shall be determined according to the location of the enterprise, institution or place where movable property is transferred, and income from equity investment assets transfer shall be determined according to the location of the invested enterprise;
(four) dividends, bonuses and other equity investment income, according to the location of income distribution enterprises to determine;
(5) Income from interest, rent and royalties shall be determined according to the location of the enterprise, institution or place that undertakes or pays the income, or according to the domicile of the individual who undertakes or pays the income;
(six) other income determined by the competent departments of finance and taxation of the State Council.
Two, confirm the source of such investment income, mainly adopts two principles:
First, the principle of the place where the investment right occurs, that is, the residence of the right provider is the source of investment income;
The second is the principle of the place of use of investment rights, that is, the place of use of rights or assets or the residence of the debtor who actually bears the investment income is the source of income. In short, income from interest, dividends and bonuses refers to the local sources of income from companies, enterprises, economic organizations or individuals who use funds and pay interest or distribute dividends and bonuses.
Extended data:
The object of enterprise income tax is the income obtained by taxpayers. Including sales of goods, provision of services, transfer of property, dividends, interest, rent, royalties, donations and other income.
A resident enterprise shall pay enterprise income tax on its income from sources inside and outside China.
(1) Priority principle of tax law: When calculating taxable income, if the enterprise's financial and accounting treatment methods are inconsistent with the provisions of tax laws and regulations, it shall be calculated in accordance with the provisions of tax laws and regulations.
For example, the scope of employee welfare expenses is inconsistent with the relevant provisions in the finance department and the tax letter, while State Taxation Administration of The People's Republic of China made it clear when answering questions about taxation that income tax should be handled according to the documents in the tax letter; In accounting treatment, according to the documents of the Ministry of Finance. Inconsistent, in accordance with the standards of the tax law.
In practice, we must also pay attention to the embodiment of the priority principle of tax law in other aspects. For example, it is stated in the contract that the individual income tax arising from the equity transfer shall be borne by the individual, but the other party shall bear this part of the expenses. In practice, if personal income tax is not paid, the tax authorities will still find someone to take responsibility.
(II) The principle of harmonization of tax laws: If the expenses actually recognized by an enterprise in the financial accounting treatment according to the financial accounting system do not exceed the pre-tax deduction scope and standards stipulated in the enterprise income tax law and relevant tax laws and regulations, the expenses recognized in the actual accounting treatment of the enterprise shall be deducted before the enterprise income tax, and its taxable income shall be calculated.
(III) Blank principle of tax law: The specific deduction items that are not clearly stipulated by the tax laws and regulations and the competent department of finance and taxation of the State Council shall be calculated according to the national financial accounting regulations on the premise of not violating the basic principle of pre-tax deduction.
For example, regarding the labor insurance expenditure, at present, only the specific deduction scope is stipulated, and there is no deduction standard, so enterprises can calculate according to the national financial accounting regulations.
Baidu Encyclopedia-Enterprise Income Tax