I. Relevant provisions and analysis of enterprise relocation income tax (I) Compared with the previous documents on policy relocation income tax, there was no expenditure on purchasing assets during the relocation period in the Announcement of State Taxation Administration of The People's Republic of China on Issues Related to Enterprise Policy Relocation Income Tax (State Taxation Administration of The People's Republic of China No.20 1 1 3, hereinafter referred to as11Announcement). After the release of 1 1, the enterprise relocation income tax policy has undergone the following changes: 1 Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Enterprise Income Tax Treatment for Policy Relocation Income (Caishui [2007] No.6 1, hereinafter referred to as Caishui [2007] No.61. After the implementation of the enterprise income tax law in 2008, Caishui [2007] No.61became invalid under the current tax law framework. 2. The Notice of State Taxation Administration of The People's Republic of China on the Treatment of Enterprise Income Tax on the Income from Policy Relocation or Disposal of Enterprises (Guo [2009] 1 18, hereinafter referred to as Guo [2009] 18) basically follows Cai Shui [2007]6 1. 3. The State Administration of Taxation has substantially revised the provisions on the deduction of assets purchased and built in the Announcement (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2012, hereinafter referred to as Announcement No.40) Caishui [2007] No.61and Guoshuihan [2009] 18, stipulating that "the expenditure on assets purchased and built by enterprises shall not be in the relocation income. Announcement No.40 makes it clear that Guoshuihan [2009] 1 18 is invalid. Expropriation of land, factory buildings, office buildings, etc. after Announcement No.40 was issued. In the process of relocation, it is a major item of relocation expenditure, which is changed from allowing deduction from income to not allowing deduction from income, resulting in a sudden and substantial increase in corporate income, which has aroused strong doubts from relocated enterprises. AnnouncementNo. 1 1 moderately adjusted the provisions of Announcement No.40 on the deduction of purchased assets from income. AnnouncementNo. 1 1 stipulates: (1) Any enterprise policy relocation project that has signed a relocation agreement before Announcement No.40 comes into effect (before 20121) and has not completed the relocation liquidation, is purchased by the enterprise during the reconstruction or resumption of production. However, when purchasing all kinds of assets, the residual value after deducting the compensation income for demolition should be used as the tax basis of assets, and depreciation or amortization of expenses should be calculated according to regulations. (2) The announcement number 1 1 will be implemented from 20121kloc-0/. Any policy relocation project that signs a relocation agreement after Announcement No.40 comes into effect shall be implemented in accordance with the relevant provisions of Announcement No.40 (II) Analysis of the advantages and disadvantages of income tax deduction and tax deduction. The so-called tax deduction means that according to Announcement No.40, the cost of purchasing assets during the relocation period is not deducted from the relocation income, and the balance of the relocation income after deducting other relocation expenses is taxed as the relocation income. When purchasing assets for depreciation and amortization, the depreciation expenses and amortization expenses under normal circumstances shall be deducted before tax. The so-called tax after deduction means that all kinds of assets purchased during relocation are deducted from the relocation income as relocation expenses according to the provisions of 19971February 3 1: (1), so the income deducted is not subject to income tax for the time being; (2) For all kinds of assets purchased during the relocation period, the residual value after deducting the relocation income is used as the tax basis of assets, and the depreciation or amortization for tax purposes is calculated accordingly. If the expenses for purchasing assets have been fully deducted from the relocation income, the tax basis of the assets is 0, and the taxable income (hereinafter referred to as taxable income or income) should be increased according to the depreciation or amortization accrued in accounting when paying taxes. Comparing the above two treatment methods, the tax payment time of the former is the relocation and liquidation, and the tax payment time of the latter is the depreciation or amortization of related assets, and the present value of the tax payable of the latter is much lower than that of the former. If a company carries out policy relocation, it will spend 6.5438+0.2 million yuan to rebuild factories, office buildings and other buildings, and 8 million yuan to purchase land use rights. The depreciation period of buildings and structures is 20 years, and the amortization period of land use rights is 50 years, regardless of net salvage value. Assuming that the corporate income tax rate is 25% during the period of asset purchase, there is still a balance after deducting the relocation expenses including asset purchase. When the tax is paid first and then deducted, the income tax should be more than 5 million yuan (20 million yuan) because the expenditure on purchasing assets is not deducted. 25%)。 When the tax is deducted first, the present value of the tax payable for depreciation and amortization of real estate for 20 years and land for 50 years is 6,543,807,800 yuan, which is 3,654,380 yuan+0,922 yuan (5,000,000-654,380,780 yuan) less than when the tax is deducted first. Two. Relevant provisions on accounting of income and expenditure for enterprise relocation (1) Units that implement the Accounting Standards for Business Enterprises and Small Business Enterprises 1 and Interpretation of Accounting Standards for Business Enterprises No.3 (Caishui [2009] No.8) stipulate that enterprises receive compensation for policy relocation and treat it as special payables, including compensation for relocation losses, relocation expenses and subsidies for purchasing assets during relocation. Special accounts payable shall be transferred to deferred revenue, and shall be handled in accordance with the Accounting Standards for Business Enterprises No.65438 +06- Government Subsidies. If there is any balance after use, it will be treated as capital reserve. The Accounting Standards for Small Enterprises does not regulate the accounting treatment of the profit and loss of enterprise policy relocation. However, the standards stipulate that transactions or events of small enterprises not specified in these standards can be handled with reference to the relevant provisions of the accounting standards for enterprises. 2. The Accounting Standards for Business EnterprisesNo. 16-Government Subsidies stipulates that when an enterprise receives a government subsidy, if (1) is used to subsidize the expenses it has already spent, the subsidy equal to the expenses will be directly included in the current non-operating income; (2) For the upcoming expenses, the income will be recorded in deferred revenue first, and then transferred from deferred revenue to the current non-operating income when the expenses are actually spent; (3) When purchasing related assets, during asset disposal (sale or consumption) or depreciation or amortization, the subsidy amount (excluding net salvage value) synchronized with depreciation and amortization should be transferred from deferred revenue to current non-operating income by the straight-line method. (B) the implementation of the "Enterprise Accounting System" in the accounting treatment of relocation income is not standardized. Therefore, units that implement the Accounting System for Enterprises should implement the provisions of the Notice of the Ministry of Finance on Financial Handling of Government-allocated Relocation Compensation (Caiqi [2005] 123): (1) Relocation subsidies received by enterprises from the government should be recorded in special accounts payable; (2) Loss of relocation and shutdown, relocation expenses, employee resettlement expenses, write-off of assets requisitioned due to relocation, loss of equipment dismantling, reloading and debugging expenses, etc. Enterprises should be directly written off; (3) After the relocation is completed, if there is any special payable balance, it will be transferred to the capital reserve; If the special payables are insufficient, they shall be included in the current profits and losses (non-operating expenses). Three. Accounting treatment of enterprise relocation (1) The unit that implements the accounting standards for business enterprises and small business enterprises 1, after receiving the relocation compensation, debits the account of "bank deposit" and credits the account of "special accounts payable", and then debits the account of "special accounts payable" and credits the account of "deferred revenue" according to the planned amount in the budget or supplementary budget. 2. Book cost of relocation expenses, confirmation of related losses or carrying forward requisitioned or dismantled assets: (1) Debit "non-operating expenses-relocation expenses and relocation assets disposal expenses" (detailed items are omitted below), credit "accumulated depreciation" and "accumulated amortization", and credit "bank deposit" and "employee salaries payable" according to the expenses or the cost of assets to be sold. (2) At the same time, according to the amount included in the above-mentioned non-operating expenses, debit the "deferred revenue" account and credit the "non-operating income" account; (3) The relocation expenses that have been paid and confirmed before receiving the appropriation shall be directly debited to the subject of "deferred revenue" and credited to the subject of "non-operating income". 3. Assets whose purchase fees have been deducted from the relocation income during the relocation liquidation shall be debited to the account of "deferred income" and credited to the account of "non-operating income" when the assets are depreciated, amortized or disposed of (including the consumption of materials and the sale of goods, the same below), or when the amount of relocation income should be confirmed in synchronization with the above matters. 4. When the relocation is completed, if there is any balance in the subjects of "Special Payables" and "deferred revenue", it will be transferred to the capital reserve at the time of the lender; When debiting, it is transferred to non-operating expenses of the current period; If the difference should be paid by the lender according to the relocation and liquidation income, it should be included in "special payables", "deferred revenue" or related capital reserve first, and the insufficient part should be included in the current income tax expense. 5. In case of asset replacement in the process of relocation, subjects such as "intangible assets" and "fixed assets" shall be debited according to the book value of the exchanged assets plus relevant taxes, subjects such as "accumulated amortization", "accumulated depreciation" and related assets impairment reserve shall be debited according to the balance of the exchanged assets, and subjects such as "intangible assets" and "fixed assets" shall be credited according to the relevant taxes paid or payable. The economic matters in the process of relocation also involve the sale, dismantling and repair of the fixed assets of the relocated assets, and the relocated enterprise shall conduct accounting treatment in accordance with the provisions of relevant standards and systems. In addition, the unit that implements the accounting standards for business enterprises should also confirm and transfer back the deferred income tax according to the temporary differences between accounting and taxation. (two) the implementation of the "enterprise accounting system" unit 1, received the demolition compensation, debit "bank deposits" and other subjects, credited to "special accounts payable" subjects. 2. When writing off the book cost of various expenses, losses and property rights loss assets, debit the special accounts payable, accumulated depreciation, accumulated amortization and other subjects, and credit the bank deposits, employee salaries payable, fixed assets, intangible assets and other subjects. Assets that have lost their property rights shall be resold at the same time if provision for impairment has been made. 3. After the relocation is completed, when there is a special payable balance, it will be transferred to the capital reserve; Insufficient, included in the current non-operating expenses; If there is any balance of relocation income tax payable, it should be paid from special payables or related capital reserve; Insufficient, also included in the current income tax expenses. 4. The accounting treatment of asset replacement is the same as the unit that implements the accounting standards for business enterprises. Four. Tax Adjustment Involving Relocation Gains and Losses (I) Profit and Loss Statement of Enterprise Policy Relocation Liquidation This table is divided into three sections: the first section "Relocation Income", with seven lines: 1, compensation for the value of expropriated assets; 2. Relocation and resettlement compensation; 3. Compensation for losses caused by suspension of production or business; 4. Insurance compensation for damage in the process of asset relocation; 5, the relocation of assets disposal income; 6. Other relocation income; 7. Total relocation income. The second paragraph "relocation expenses" is also seven lines, namely: 8. The actual cost of employee placement; 9. Wages and welfare funds paid to employees during the shutdown period; 10. Expenses incurred in temporarily storing the relocated assets; 1 1, relocation and installation expenses of various assets; 12, expenditure on asset disposal; 13, other relocation expenses; 14. Total relocation expenses. There is only one line in the third paragraph, that is, line 15 "relocation gain (or loss)", and the bank should fill in the difference between line 7 and line 14. Due to the release of the "new regulations", the major expenses of eligible relocated enterprises to purchase assets can be deducted from the relocation income. Therefore, the column of "expenditure on purchasing assets" should be added to the category of "relocation expenditure" in this table, which can be arranged between the original 12 line and the original 13 line, and the following original line numbers should be appropriately adjusted. (II) Principles for tax adjustment of relocation income tax When an enterprise moves, it shall fill in Schedule 9 and Schedule 3 and follow the following principles: (1) All relocation income, relocation expenses or relocation profits and losses confirmed in accounting shall be transferred back through tax adjustment; (2) For tax matters involving relocation income, relocation expenses and relocation income (or loss), except the amount of relocation income (or loss) in the relocation liquidation income statement should be included in the second and third columns of line 19 of Schedule III or the second and fourth columns of line 40, all other items should be included as 0. (3) For the relocated assets that have been deducted from the relocation income during liquidation in Schedule 9, the depreciation and amortization shall be reported in the relevant items (lines) in Schedule 9: (1) The amount (or years) confirmed or calculated according to accounting standards shall be reported in columns 1, 3, 5 and 7 respectively, with 0 (columns 2, 4 and 6). (2) Add the amounts in the columns except columns 3 and 4 in lines 2 to 6 of Schedule 9 and fill them in the columns in line 1 of the table; (3) The amount in the seventh column of line 1 in Schedule 9 and the amount in the seventh column of line 15 are transferred to the third column of line 43 and line 46 in Schedule 3 respectively. (4) Presentation in Schedule 3: 1, from the start of relocation to one year before the completion of relocation: (1) Relocation compensation income (referring to the amount included in non-operating income, the same below) confirmed in that year should be presented in Schedule 3, where: 1 1. (2) The expenses or losses of relocation expenses incurred in the current year and included in the current profit and loss shall be listed in line 40 of Schedule 3, in which such expenses included in the current profit and loss shall be listed in columns 1 and 3, and 0 shall be listed in column 2. 2. Year when the relocation is completed and the relocation gains and losses are liquidated: (1) The compensation income confirmed by accounting in that year is reported in lines 1 1 and 4 of Schedule 3, and 0 is filled in the second column; (2) At the same time, fill in columns 1 and 3 in line 40 of Schedule III, and fill in column 0 in column 2; (3) Transfer the amount of "relocation income (or loss)" in the relocation liquidation income statement to Schedule 3: If it is relocation income, transfer it to columns 2 and 3 of line 19; If the loss is caused by relocation, enter the 2nd and 4th columns of the 40th line, and fill 0 in the 1 column. 3. When the demolition compensation income is confirmed by accounting in future years, it shall also be reported in line 1 1 of Schedule 3, in which the compensation income confirmed by accounting in this year shall be reported in columns 1 and 4 of the Bank, and 0 shall be filled in column 2. The above has already introduced the tax declaration standards for the relocation profits and losses of enterprises that implement the accounting standards for business enterprises and accounting standards for small enterprises, as well as the relocated enterprises that implement the accounting system for business enterprises. Because the relocation income and relocation expenses are not recognized in accounting, the balance of relocation income is not included in the profit and loss. Such relocation enterprises should fill in the relocation liquidation income statement when the relocation is completed, and fill in the amount of "relocation income (or loss)" in Schedule 3. (5) Tax adjustment involving the profit and loss of asset disposal of the relocated enterprise. From the beginning of relocation to the year of completion of relocation, tax adjustment shall be made every year according to the net profit and loss of asset disposal of the relocated enterprise included in the profit and loss of the current year: if it is included in non-operating income, it shall be filled in columns 1 and 4 in line 19 of Schedule III, and 0 shall be filled in column 2; If it is included in non-operating expenses, it shall be filled in columns 1 and 3 in line 40 of Schedule 3, and 0 shall be filled in column 2. Basically, the new enterprise income tax regulations are the same for policy-based demolition of fixed assets and its fiscal and tax treatment methods. Handling according to the above regulations and methods is beneficial to enterprises and can also be used as a reference. Of course, it is possible to handle them in your own way. As long as it meets the requirements of policy-based demolition, corresponding solutions can be implemented.