The Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Preferential Enterprise Income Tax for "Company+Farmers" Business Model (Announcement No.2 of State Taxation Administration of The People's Republic of China No.20 20 10/0) stipulates that some enterprises adopt the business model of "Company+Farmers" to raise livestock and poultry, that is, the company signs an entrusted breeding contract with farmers to provide farmers with livestock and poultry seedlings, feed, veterinary drugs and vaccines (the ownership still belongs to the company). Farmers develop livestock and poultry into finished products and send them to the company for recycling. In view of the fact that enterprises adopting the business model of "company+farmers" do not directly engage in livestock and poultry breeding, but entrust farmers to raise livestock and poultry, and bear the management responsibilities such as market, management, procurement and sales and most of the management risks, the relationship between the company and farmers is labor outsourcing. Therefore, they are engaged in the production of agriculture, forestry, animal husbandry and fishery projects with the business model of "company+farmer".
According to the above regulations, the "company+farmer" business model can enjoy the preferential enterprise income tax policy, but it must conform to the principle that "the company signs an entrusted breeding contract with farmers to provide farmers with livestock and poultry seedlings, feed, veterinary drugs and vaccines (ownership still belongs to the company), and farmers will raise livestock and poultry into finished products and deliver them to the company for recycling." In this mode, livestock and poultry, livestock seedlings, feed, veterinary drugs and vaccines raised by farmers are all. The expenses incurred have been regarded as the production cost of the company, and the company will pay some remuneration to the farmers when collecting and recovering. Because farmers use their own places or skills to provide services, that is, they have obtained taxable income from business tax. Regardless of whether the income reaches the threshold, they should apply to the tax authorities to issue relevant invoices to the company.
What vouchers are needed for agricultural product input tax deduction?
According to Item (3) of Article 8 of the Provisional Regulations on Value-added Tax, unless otherwise stipulated by the State Council, the input tax for purchasing agricultural products shall be calculated according to the purchase price of agricultural products and the deduction rate 1 1% (changed to 9%) indicated on the purchase invoice or sales invoice.
Ordinary VAT invoices issued by individuals for your company to sell self-produced agricultural products to tax authorities belong to ordinary VAT invoices issued by agricultural producers to sell self-produced agricultural products to buyers.
Therefore, on the basis of real business, the deduction can be calculated based on the sales invoice, and no other materials are needed as proof for calculating the deduction.
It should be reminded that if your company buys agricultural products from commodity circulation, wholesale and retail, even if you get the sales invoice, you can't deduct the input tax.
How to do the tax treatment of the company+farmer business model?