Small and micro enterprises must issue invoices when purchasing goods.

Announcement of the State Administration of Taxation

Announcement of the State Administration of Taxation on the Issuance of the "Administrative Measures for Pre-tax Deduction Vouchers for Enterprise Income Tax" State Administration of Taxation Announcement No. 28 of 2018

Article 2 The term "pre-tax deduction voucher" as mentioned in these Measures refers to various types of vouchers used by enterprises to prove that reasonable expenditures related to the income are actually incurred when calculating the taxable income of corporate income tax, and based on which pre-tax deductions are made.

Article 3 The term "enterprise" as mentioned in these Measures refers to the resident enterprises and non-resident enterprises stipulated in the Enterprise Income Tax Law and its implementation regulations.

Article 4: Pre-tax deduction vouchers shall be managed in compliance with the principles of authenticity, legality and relevance. Authenticity means that the economic business reflected in the pre-tax deduction voucher is true and the expenditure has actually occurred; legality means that the form and source of the pre-tax deduction voucher comply with national laws, regulations and other relevant provisions; relevance means that the pre-tax deduction voucher and its Expenditures reflected are relevant and probative.

Article 5 When an enterprise incurs expenditures, it shall obtain a pre-tax deduction certificate as the basis for deducting relevant expenditures when calculating the taxable income of corporate income tax.

Article 6 An enterprise shall obtain a pre-tax deduction certificate before the end of the final settlement period stipulated in the Corporate Income Tax Law of the current year.

Article 7 Enterprises should retain information related to pre-tax deduction vouchers, including contract agreements, expenditure basis, payment vouchers, etc., for future reference to verify the authenticity of pre-tax deduction vouchers.

Article 8 Pre-tax deduction vouchers are divided into internal vouchers and external vouchers according to their sources.

Internal vouchers refer to the original accounting vouchers produced by the enterprise for accounting of costs, expenses, losses and other expenditures. The filling and use of internal vouchers should comply with national accounting laws, regulations and other relevant provisions.

External vouchers refer to the vouchers obtained from other units and individuals to prove the occurrence of expenditures when an enterprise conducts business activities and other matters, including but not limited to invoices (including paper invoices and electronic invoices) , financial bills, tax payment vouchers, collection vouchers, split orders, etc.