At 19:30 on the evening of November 16, 2016, we used the live broadcast function to share a finance and tax salon with our entrepreneurial partners. The topic shared is "How to deal with these financial and tax issues we may already have (Part 1)".

Below, I will summarize and review the content I shared:

(Some text content has been slightly deleted)

1. The company financed the purchase of a house and a car. The right holder is written as a shareholder (natural person). Financial and tax issues

2. Accounts receivable or other receivables of shareholders are listed on the books

As for the issue of year-end, we believe: The starting point for taxation of unrepaid loans from individual shareholders to enterprises should be 12 months (i.e. one year) from the time of borrowing to repayment, not after the end of the tax year. In other words, if an individual shareholder borrows money from an enterprise but does not use it for production and operations, and does not repay it within 12 months, a personal income tax of 20% of the borrowed amount will be levied. If the loan was borrowed on October 14, 2016 and has not been repaid by October 13, 2017, a personal income tax of 20% shall be levied.

In actual work, many shareholders choose to avoid taxes nakedly, or to use the company's money as their own money. However, these are all tax risks and are not recommended by us.

3. In cost expenses, company expenses and shareholders’ personal consumption are mixed together and cannot be clearly distinguished

The standard approach is that the company is the company, the shareholders are the shareholders, and the company’s assets are transferred to the company. The company's expenses are also included in the company's accounts, and shareholders can exercise their shareholder rights in a standardized manner and receive dividend distributions.

For tax audits, the "shareholder personal consumption expenses" involved in the above situations will be regarded as shareholder dividends, and a 20% personal income tax will be calculated and paid. It will also involve late payment fees and penalties for personal income tax.

4. There are no vehicles among the fixed assets in the company's books, but there are a lot of financial and tax issues related to vehicle usage costs.

Concern 1: Can the input tax on gasoline and repair costs incurred when using a car be deducted?

First of all, we can see an official website reply issued by the State Administration of Taxation in 2013:

Based on this reply we can see: "Implementation Rules of the Interim Regulations on Value-Added Tax" Article 25 The input tax that cannot be deducted refers to the input tax of the enterprise when purchasing a car that is subject to consumption tax for its own use. The input tax on gasoline and repair costs used for production and operation can be deducted. Therefore, when a private car is used for public use, the input tax on gasoline and repair costs used for production and operation can also be deducted.

Attention 2: What expenses incurred by the car can be deducted before corporate income tax?

According to Article 8 of the "Enterprise Income Tax Law", the actual and reasonable expenditures incurred by the enterprise related to the acquisition of income, including costs, expenses, taxes, losses and other expenditures, are allowed in the calculation of taxable income. The amount will be deducted at the time of payment. Article 27 of the "Implementation Regulations" stipulates that the relevant expenditures referred to in Article 8 of the Enterprise Income Tax Law refer to expenditures directly related to the acquisition of income. The so-called reasonable expenditures refer to necessary and normal expenditures that are in line with the routine of production and operation activities and should be included in the current profits and losses or asset costs.

Therefore, the expenses incurred by the enterprise must meet the authenticity, relevance and reasonableness of the above provisions at the same time before they can be deducted before corporate income tax.

Attention 3: Some suggestions on the public use of private cars

Attention 4: Tax-related issues for car owners

Whether car owners should pay value-added tax on vehicle rental income ?

VAT should be paid on the car owner’s income from leasing the car.

Should both parties to the lease pay stamp duty?

According to Article 1 of the "Interim Regulations on Stamp Duty", all entities and individuals who write and receive the vouchers listed in these regulations within the territory of the People's Republic of China are taxpayers of stamp duty. In other words, stamp duty taxpayers include not only entities but also individuals. According to Article 2 of the "Interim Regulations on Stamp Duty", a lease contract for property such as a car is a taxable voucher for stamp duty. Both parties to the document shall decal 0.1% of the lease contract amount and pay stamp duty.

5. The original documents attached to the collection of costs and expenses are not enough to support the relevant cost and expense data

For manufacturing enterprises, the three items that constitute the product cost are materials, labor and materials. , labor, various expense accounting does not clearly belong to which cost object, and the recorded value will cause problems. If the unit has clear accounting, but the specific bills are incomplete, and the tax bureau does not know the ins and outs of the accounting, it will be very difficult for the tax bureau to approve it. Maybe from high principles. Generally, the attachments corresponding to product costs, such as picking lists, labor cost calculation sheets, and manufacturing cost calculation sheets, cannot be omitted, and the details in these three items cannot be defaulted.

For commercial enterprises, the cost of purchase, the proportion of sales, the corresponding proportion of output tax, the inventory purchased, the corresponding contracts, invoices (including deduction coupons), The payment flow and the book balance at the end of the period should all be understood to a certain extent. At the same time, the process data reflection of the receipt, receipt and deposit of the corresponding inventory is also a key point of special attention.

As for employee wages, when paying employees in cash, there is no confirmed pay slip signed by the employee. Can the pay slip be effectively connected with the employee's labor contract and social security list? In actual work, wages paid in cash require the employee's signature. If a transfer is used, the amount paid is the amount paid. Leave cannot be taken. If the overpayment is paid, the employee may have to pay it in cash. After the payment is made, there will be no salary slip, so the account will be If the salary from work does not match the money from the bank, there is something wrong. In this case, you cannot check it. It will be obvious as soon as you check it.

6. Mande Enterprise Service's "Easy Account Checking" - the function of checking accounts at any time on the mobile phone

In order to facilitate the users of Mande Enterprise Service to have a clearer understanding of their company's accounting process Regarding the account status, we have specially developed the "Easy Account Check" function, which means that everyone can conveniently check the accounts at any time using their mobile phones, push tax reporting information in a timely manner, and avoid fines.