Summary of knowledge points of enterprise income tax

Enterprise income tax refers to an income tax levied on enterprises (resident enterprises and non-resident enterprises) and other income-earning organizations in the People's Republic of China with their production and operation income as the tax object. As a taxpayer of enterprise income tax, he should pay enterprise income tax in accordance with the Enterprise Income Tax Law of the People's Republic of China. The following are the knowledge points of corporate income tax that I have summarized for you. Welcome to read.

I. Taxpayer

Within the People's Republic of China, enterprises and other income-earning organizations (hereinafter referred to as enterprises) are taxpayers of enterprise income tax.

II. Taxpayers

The taxable objects of enterprise income tax are the income from production and operation, other income and liquidation obtained by taxpayers (including resident enterprises and non-resident enterprises). Including income from domestic and overseas sources of resident enterprises and taxable income from domestic sources of non-resident enterprises.

III. Tax rate

1. For resident enterprises and non-resident enterprises that have established institutions and places in China and whose income is actually related to the institutions and places they have established, the applicable tax rate is 25% for their income sourced from inside and outside China.

2. if a non-resident enterprise does not have an institution or place in China, or if it does, but the income it obtains has no actual connection with the institution or place it has set up, the applicable tax rate is 2%.

IV. Calculation of taxable income

1. The taxable basis of enterprise income tax is taxable income, that is, the total income of an enterprise in each tax year, after deducting non-taxable income, tax-exempt income, various deductions and losses allowed to make up for previous years.

2. Taxable income = total income-non-taxable income-tax-free income-deductions-The calculation of taxable income of loss-making enterprises in the previous year is based on the accrual basis.

(I) Total income

The total income of an enterprise refers to the income obtained from various sources in monetary and non-monetary forms. Including: income from selling goods, income from providing labor services, income from transferring property, income from equity investment such as dividends and bonuses, interest income, rental income, royalty income, income from accepting donations and other income.

(II) Non-taxable income

1. Financial allocation.

2. Administrative fees and government funds collected according to law and incorporated into financial management.

3. Other non-taxable income stipulated by the State Council.

(III) Pre-tax deductions

The reasonable expenses actually incurred by an enterprise related to income, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.

(4) Deduction criteria

1. Wage and salary expenses.

reasonable wages and salaries incurred by the enterprise are allowed to be deducted.

2. Employee welfare funds, trade union funds and employee education funds. Employee welfare expenses, trade union funds and employee education funds incurred by the enterprise shall be deducted according to the standard. Those who do not exceed the standard are deducted according to the actual amount, and those who exceed the deduction standard can only be deducted according to the standard.

3. Social insurance premium.

4. borrowing costs.

5. Interest expense.

6. Exchange loss.

7. Public welfare donation.

the portion of the public welfare donation expenditure incurred by the enterprise that does not exceed 12% of the total annual profit is allowed to be deducted when calculating the taxable income.

8. Business entertainment expenses.

the business entertainment expenses related to the production and business activities of the enterprise shall be deducted according to 6% of the amount incurred, but the maximum amount shall not exceed 5‰ of the sales (business) income of the current year.

9. Advertising expenses and business promotion expenses.

unless otherwise stipulated by the competent departments of finance and taxation of the State Council, the eligible advertising expenses and business promotion expenses incurred by the enterprise shall be deducted if they do not exceed l5% of the sales (business) income of the current year; The excess shall be allowed to be carried forward and deducted in future tax years.

1. Special funds for environmental protection.

the special funds for environmental protection, ecological restoration, etc. extracted by enterprises in accordance with the relevant provisions of laws and administrative regulations are allowed to be deducted. If the above-mentioned special funds are changed after extraction, they shall not be deducted.

11. insurance premium.

if an enterprise participates in property insurance, the insurance premium paid in accordance with the regulations is allowed to be deducted.

12. rental fee.

13. Labor protection fee.

reasonable labor protection expenses incurred by the enterprise are allowed to be deducted.

14. Expenses related to assets.

expenses incurred by enterprises in transferring various fixed assets are allowed to be deducted. Depreciation expenses of fixed assets, amortization expenses of intangible assets and deferred assets calculated by enterprises according to regulations are allowed to be deducted.

15. Costs shared by the head office.

16. Loss of assets.

17. Other items that are allowed to be deducted in accordance with relevant laws, administrative regulations and relevant state tax laws. Such as membership fees, reasonable meeting fees, travel expenses, liquidated damages, litigation costs, etc.

(5) Items

1. Dividends, bonuses and other equity investment income paid to investors shall not be deducted.

2. Corporate income tax.

3. Tax late payment.

4. fines, fines and losses of confiscated property.

5. Donation expenditure exceeding the prescribed standards.

6. sponsorship expenditure.

7. Unapproved reserve expenditure.

8. Management fees paid between enterprises, rents and royalties paid between operating institutions within enterprises, and interest paid between operating institutions within non-bank enterprises.

9. Other expenses unrelated to income.

(VI) Compensation for losses

The losses incurred by an enterprise in a certain tax year can be compensated by the income of the next year. If the income of the next year is insufficient, the compensation can be continued year by year, but the longest period shall not exceed 5 years. Moreover, when an enterprise calculates and pays enterprise income tax in summary, the losses of its overseas business institutions shall not be offset against the profits of its domestic business institutions.

(VII) Taxable income of non-resident enterprises

V. Tax treatment of assets

(I) Fixed assets

When calculating the taxable income, the depreciation of fixed assets calculated by the enterprise in accordance with regulations is allowed to be deducted.

(2) Productive biological assets

(3) Intangible assets

When calculating taxable income, the amortization expenses of intangible assets calculated by the enterprise according to the regulations are allowed to be deducted.

(4) Long-term deferred expenses Long-term deferred expenses refer to expenses incurred by an enterprise that should be amortized for more than one year or several years.

(5) During the period of foreign investment by an enterprise investing in assets, the cost of investing in assets shall not be deducted when calculating the taxable income. When an enterprise transfers or disposes of an investment asset, the cost of the investment asset is allowed to be deducted.

(VI) Inventory

If an enterprise uses or sells inventory, the inventory cost calculated in accordance with regulations may be deducted when calculating the taxable income.

(VII) Asset losses

Asset losses incurred by an enterprise shall be declared and deducted in the year when they are actually confirmed or actually incurred according to the provisions of the tax law, and shall not be deducted in advance or later.

VI. Calculation of Taxable Amount

The formula for calculating the taxable amount of enterprise income tax is:

Taxable amount = taxable income x applicable tax rate-tax reduction and exemption-tax credit

VII. Tax preference

(I) Tax-free income

1. debt interest income.

2. dividends, bonuses and other equity investment income of qualified resident enterprises.

3. Non-resident enterprises that set up institutions and places in China obtain dividends, bonuses and other equity investment income that are actually related to the institutions and places from resident enterprises.

4. Income of qualified non-profit organizations.

5. in the share-trading reform, the listed company should increase its registered capital or capital reserve and not levy enterprise income tax if the non-tradable shareholders accepted by the listed company as consideration are injected into assets and exempted from debts.

(II) Income from tax reduction or exemption

1. Items exempted from enterprise income tax.

2. Projects with enterprise income tax halved.

3. Income from investment and operation of public infrastructure projects supported by the state.

4. Income from qualified environmental protection, energy saving and water saving projects.

5. Income from qualified technology transfer.

6. Income derived from China by non-resident enterprises.

7. Small and meager profit enterprises.

8. High-tech enterprises.

(3) Tax reduction or exemption in ethnic autonomous areas

(4) Additional deduction

1. Research and development expenses.

2. Wages paid for the placement of disabled persons and other employed persons encouraged by the state. (5) Deduction of taxable income When a venture capital enterprise engages in venture capital that the state needs to support and encourage, it can deduct taxable income according to a certain proportion of the investment amount.

(6) accelerated depreciation

if it is really necessary to accelerate the depreciation of fixed assets of an enterprise due to technological progress and other reasons, the depreciation period can be shortened or accelerated depreciation can be adopted.

(VII) Deduction of income

The income obtained by an enterprise from the comprehensive utilization of resources and the production of products that meet the requirements of the national industrial policy may be deducted when calculating the taxable income.

(VIII) Tax credit

An enterprise can implement tax credit according to a certain proportion of its investment in purchasing special equipment for environmental protection, energy saving and water saving, and safe production.

VIII. Withholding at source

(1) Withholding agent

If there is no institution or place in China, or if there is an institution or place, but the income obtained by a non-resident enterprise has no actual connection with the institution or place it has established, the income tax payable on the income obtained from China shall be withheld at source, and the payer shall be the withholding agent.

(II) Withholding method

The formula for calculating the taxable amount of withholding enterprise income tax is:

Taxable amount of withholding enterprise income tax = taxable income x actual collection rate

(III) Withholding management

The withholding agent shall be designated by the tax authorities at or above the county level, and shall be informed of the calculation basis, calculation method, withholding period and withholding method of the withheld tax.

IX. Special tax adjustment

(I) Scope of special tax adjustment

If the business dealings between an enterprise and its related parties do not conform to the principle of independent transactions, and the taxable income or income of the enterprise or its related parties is reduced, the tax authorities have the right to make adjustments in a reasonable way.

(II) Tax treatment of related business between related parties

(III) Verification of taxable income

If an enterprise fails to provide information on business dealings with its related parties, or provides false or incomplete information that fails to truly reflect its related business dealings, the tax authorities have the right to verify its taxable income according to law. (IV) Supplementary tax payment and additional interest The tax authorities have made tax adjustments in accordance with regulations. If supplementary tax payment is needed, it shall be supplemented with additional interest in accordance with the regulations of the State Council.

(V) Time limit for tax adjustment

If the business dealings between an enterprise and its related parties do not conform to the principle of independent transactions, or the enterprise implements other arrangements that do not have reasonable commercial purposes, the tax authorities have the right to make tax adjustments within 1 years from the tax year in which the business occurs.

X. Administration of enterprise income tax collection

(1) Tax payment place

1. Tax payment place of resident enterprises.

unless otherwise stipulated by tax laws and administrative regulations, resident enterprises shall take the place where the enterprise is registered as the place of tax payment; However, if the place of registration is overseas, the place of tax payment shall be the place where the actual management institution is located.

2. Tax payment place of non-resident enterprises.

where a non-resident enterprise establishes an institution or place within the territory of China, the place where the institution or place is located shall be the place of tax payment.

(II) Time limit for tax payment

Corporate income tax is levied on an annual basis, paid in advance by month or quarter, and settled at the end of the year, with overpayment and underpayment. The tax year starts from January 1st to December 31st in Gregorian calendar.

(III) Tax returns

If the enterprise income tax is paid in advance on a monthly or quarterly basis, the enterprise income tax return shall be submitted to the tax authorities within 15 days from the end of the month or quarter to pay the tax in advance.

Differentiate the types of tax payment

Resident enterprises

(1) Enterprises established in China according to law

(2) Enterprises established overseas but with actual management institutions in China (one of them is enough) Non-resident enterprises

(3) Enterprises established overseas and with actual management institutions not in China but with institutions and places in China

(4). There is no institution or place, but there is the determination of the source of domestic income (used to judge whether the income is subject to enterprise income tax in China)

the place where the transaction activity of selling goods takes place.

the place where the labor obtained from providing labor services occurs.

the location of the real estate obtained from the transfer of real estate.

the location of the enterprise, institution or place where the movable property is transferred.

the location of the invested enterprise from the transfer of equity investment assets.

the location of the enterprise from which dividends, bonuses and other equity investments are distributed.

the burden of income from interest, rent and royalties, and the location of the enterprise or institution, place or personal residence where the income is paid. ;