The State Council's "Notice on Imposing Income Tax on Solely Proprietary Enterprises and Partnership Enterprises" [Guo Fa (2000) 16] stipulates that in order to fair the tax burden, support and encourage individuals to invest and set up enterprises, and promote the sustained, rapid and healthy development of the national economy, the State Council has decided that from 2000 1 month 1 day,

In order to conscientiously implement the spirit of the Notice of the State Council on the Collection of Income Tax by Sole Proprietors and Partnerships [Guo Fa (2000) 16], hereinafter referred to as the Notice) and do a good job in the collection and management of individual income tax by investors of sole proprietors and partnerships, the Ministry of Finance and State Taxation Administration of The People's Republic of China formulated the Provisions on the Collection of Individual Income Tax by Investors of Sole Proprietors and Partnerships [Cai Shui (2000) 09

Sole proprietorship enterprises and partnership enterprises refer to:

(1) A sole proprietorship enterprise or partnership enterprise registered and established in accordance with the Law of the People's Republic of China on Solely Owned Enterprises and the Law of the People's Republic of China on Partnership Enterprises;

(2) A sole proprietorship and partnership private enterprise registered and established in accordance with the Provisional Regulations of the People's Republic of China on Private Enterprises;

(3) A partnership law firm registered and established in accordance with the Lawyers Law of the People's Republic of China;

(4) Other sole proprietorship and individual partnership institutions or organizations with unlimited liability and unlimited joint and several liability approved by relevant government departments in accordance with laws and regulations.

A sole proprietorship enterprise takes the investor as the taxpayer, and a partnership enterprise takes each partner as the taxpayer.

Article 4 of the Provisions on Individual Income Tax for Investors in Sole proprietorship Enterprises and Partnership Enterprises stipulates that the total income refers to all kinds of income obtained by enterprises engaged in production and operation and activities related to production and operation, including commodity (product) sales income, operating income, labor service income, project price income, property rental or transfer income, interest income, other business income and non-operating income.

If an enterprise rents or transfers the fixed assets on its books to the outside world, its income will no longer be taxed as "income from property lease" or "income from property transfer", but the taxable income incorporated into the enterprise will be uniformly taxed as "income from production and operation"; Similarly, if an investor lends money to other units or individuals in the name of an enterprise, the interest earned should also be taxed as "income from production and operation", instead of personal income tax as "interest income";

If an investor uses the fixed assets owned by an individual that have nothing to do with the production and operation of the enterprise for external lease or transfer, the income obtained shall be subject to individual income tax separately according to the items of "income from property lease" or "income from property transfer"; Similarly, if investors lend money unrelated to the production and operation of enterprises to others. The interest income earned by them shall be withheld and remitted by the paying unit at 20% of the personal income tax according to the "interest income".

For investors who invest their funds abroad in the name of an enterprise (with limited liability), the dividends after tax (enterprise income tax) shall be withheld and remitted by the invested enterprise according to the "dividend income" item, and will not be incorporated into the "production and operation income" for taxation or supplementary tax;

Document No.91of Caishui (2000) stipulates that after a sole proprietorship enterprise and a partnership enterprise stop collecting enterprise income tax, if the tax reduction or exemption has not expired, it can be continued before 20001February 3 1. Provisions on Individual Income Tax for Investors of Sole proprietorship Enterprises and Partnership Enterprises shall be implemented from 1 month 1 day, 2000.

If an enterprise can continue to enjoy the preferential treatment of 50% corporate income tax in 2000 according to the regulations, then when calculating the actual personal income tax paid by the enterprise in 2000, we should first determine the amount of corporate income tax payable in 2000 according to the regulations, and then determine the amount of corporate income tax that it should enjoy by 50%, and then subtract the amount of corporate income tax that it should enjoy by 50% from the personal income tax that it should pay as its actual tax amount. In order to facilitate the operation, the author suggests that when collecting personal income tax in 2000, personal income tax should be preferential according to the preferential range of corporate income tax.

The policy of making up for losses is equally applicable to enterprise income tax and individual income tax (the period of making up for losses is five years), and it is naturally connected when implementing the "two income taxes". When implementing the above policies, it cannot be regarded as a special preferential policy of enterprise income tax. When implementing enterprise income tax, the losses that have not been made up in previous years can be made up with the income in 2000 and subsequent years.

Article 15 of the Regulations stipulates that investors who have paid income tax from overseas production and operation may calculate and deduct the income tax paid abroad in accordance with the relevant provisions of the Individual Income Tax Law.

Since the income from production and operation is subject to an excessive progressive tax rate of 5%-35%, when calculating the personal income tax payable in accordance with the provisions of China's tax law, the income divided back (net income+overseas paid tax) should be combined with the income from production and operation of the enterprise to determine its applicable tax rate, and then the personal income tax payable by overseas income according to the provisions of China's tax law should be calculated according to the proportion of overseas income to the total income as the credit limit of overseas income.

[Case 339]

[Case Description] Tianlan Planning & Production Institute is a sole proprietorship enterprise invested by Lan Yaping. In 2002, the total profit was 55,000 yuan, of which the overseas income was10,000 yuan, and the overseas paid-in income tax was 1 500 yuan.

If the known annual taxable income is more than 50,000 yuan, the tax rate is 35%, and the deduction is 6750; If the annual taxable income exceeds 30,000 yuan to 50,000 yuan, the tax rate is 30%, and the deduction is 4,250.

[Requirements] The income tax payable by Tianlan Planning and Production Office in Lan Yaping in 2002.

[Legal basis] Provisions of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Individual Income Tax for Investors in Sole proprietorship Enterprises and Partnership Enterprises [Caishui (2000) No.091].

[Calculation Note] The income tax payable by Tianlan Planning & Manufacturing Co., Ltd. in Lan Yaping in 2002 is calculated as follows:

Taxable income = 45000+10000+1500 = 56500 (yuan)

The applicable tax rate is 35%, and the quick deduction is 6750.

56500× 35%-6750 =13025 (yuan)

Personal income tax payable for overseas income according to China's tax law is:

13 025× (11500 ÷ 56500) = 2651.11(yuan)

Or:11500× 35%-11500+56500× 6750 = 2651.1(yuan)

It is greater than the individual income tax paid abroad 1500 yuan, so the paid-in income tax abroad is allowed to be credited.

Personal income tax payable by Tianlan Planning and Production Office in Lan Yaping =13025-1500.

=11525 (yuan).

If an enterprise starts business in the middle of a year, or the actual operating period of the tax year is less than 12 months due to merger or closure, it shall be regarded as a tax year. When calculating the payable income tax, it should be noted that the income from production and operation is subject to the excessive progressive tax rate of 5%-35%, so it should be converted into the annual taxable income for calculation; When an enterprise pays personal income tax in advance on a monthly basis, it should also convert the taxable income of the current month into the taxable income of the whole year and calculate the taxable income of the current month. However, the above conversion method is not used for taxable items of "income from contracting and leasing" and taxable items of "income from production and operation" in the taxpayer's liquidation year, and the actual operating period is less than one year. The specific calculation method is as follows:

(1) Convert the actual operating income into the annual taxable income (if the starting month is less than one month, it will be calculated as one month);

(2) Calculate the annual tax payable;

(3) Convert the actual tax payable according to the original proportion.

[Case 340]

[Case Description] New Century Enterprise Management Consulting Firm is a sole proprietorship enterprise in Chen Xinwen, which started business on March 5, 2002, and its taxable income in 2002 was 47,689 yuan.

[Requirements] Income tax payable by Chen Xinwen, a new century enterprise management consulting firm.

[Legal basis] Individual Income Tax Law of the People's Republic of China and Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China.

[Calculation Note] Convert the monthly income of Chen Xinwen, a new century enterprise management consulting firm, in 2002 10 into the taxable income of the whole year as follows:

Annual taxable income = 47,68910×12 = 57,226.8 (yuan)

Taxable amount calculated according to annual income = 57,226.8× 35%-6,750.

=13 279.38 (yuan)

Actual tax payable =13 279.38÷12×10 =1066.15 (yuan).

[Special Note] The income tax calculation method with an actual operating period of less than one year cannot be calculated by directly multiplying the actual income by the applicable tax rate and quick deduction corresponding to the annual income.

[Case 34 1]

[Description of the case] Following the previous case [Case 340], New Century Enterprise Management Consulting Firm started business on 1 February1day in 2002. The actual operating period was one month, and the taxable income in 2002 was 4,500 yuan.

[Legal basis] Individual Income Tax Law of the People's Republic of China and Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China.

[Analysis and Guidance] Convert the income of Chen Xinwen, a new century enterprise management consulting firm, in 2002 1 month into the taxable income of the whole year as follows:

Annual taxable income = 4,500×12 = 54,000 yuan.

Taxable amount calculated according to annual income = 54 000× 35%-6 750

=12150 yuan.

The actual tax payable of Chen Xinwen, a new century enterprise management consulting firm in 2002 =12150 ÷12 =10/2.5 yuan.

However, if the actual income is directly multiplied by the applicable tax rate and quick deduction method corresponding to the annual income, the calculated tax payable is:

Taxable amount of Chen Xinwen, a new century enterprise management consulting firm, in 2002 = 4500× 35%-6750.

=-5175 (yuan).

The result is obviously wrong.

When an enterprise prepays personal income tax on a monthly basis, it should also be converted into taxable income for the whole year. The accumulated personal income tax payable as of this month should be calculated according to the above method, and then the personal income tax payable in advance this month should be calculated.

Personal income tax payable in advance this month = personal income tax payable in advance this year-personal income tax paid in advance this year

When an investor establishes two or more sole proprietorship enterprises, the applicable tax rate shall be determined based on the total taxable income of all enterprises, and the tax payable shall be calculated by using the taxable income of the enterprises, and then settled. The specific calculation method is as follows:

Total individual income tax payable by investors = total taxable income of all enterprises × applicable tax rate-quick deduction

Personal income tax payable by this enterprise = total personal income tax payable by investors × taxable income of this enterprise ÷ total taxable income of all enterprises.

Or = taxable income of this enterprise × tax rate corresponding to the total taxable income of all enterprises-(taxable income of this enterprise ÷ total taxable income of all enterprises )× quick deduction.

[Case 342]

[Case Description] Changhe (Baiyin) Textile Machinery Factory was established by Fan Guifang on March 5, 200 1 year. On October 6th, 2002, Changhe (Baiyin) Textile Machinery Factory entrusted Junyang Financial Service Center to declare personal income tax.

The accounting statements of Changhe (Baiyin) Textile Machinery Factory in 200 1 year reflect 200 1 year:

The main business income is 800,000 yuan.

Other business income is 40,000 yuan

Business tax and surcharge 50,000 yuan

Operating cost is 580,000 yuan.

The management fee is 80,000 yuan.

The sales expense is 35,000 yuan.

The financial expenses are 60,000 yuan.

Non-operating expenditure is 30,000 yuan.

The total profit is 5,000 yuan.

Deng Xiaode, a certified public accountant of Junyang Financial Services Center, found the following problems by reviewing relevant accounting documents:

(1) Review the "Payable Wage" account, and pay the salary of110,000 yuan in this period, of which the investor's own salary is 6,000 yuan, and there is no balance in the Payable Wage Account at the end of the period. The enterprise * * * has 9 employees (excluding investors themselves), and the taxable wage standard stipulated by the province is 860 yuan/person/month, and the expense deduction standard for investors is 800 yuan/person/month.

(2) Examining the accounts of "trade union funds", "employee welfare funds" and "employee education funds", the withdrawals in this period are RMB 2,200,15,400 and 1650 yuan respectively, and the actual amounts in this period are 500 yuan,/10 000 and/kloc respectively.

(3) Review the "management fee" account, and charge 6800 yuan for business entertainment in this period.

According to the tax law, the business entertainment expenses directly related to the production and operation of an enterprise in each tax year can be deducted according to the facts within the following proportions: if the annual net sales (business) income is15 million yuan or less, it does not exceed 5.9 million yuan of the net sales (business) income, and the annual net sales (business) income exceeds15 million yuan.

(4) Review the "sales expenses" account. In this period, the advertising expenses are 2 1 000 yuan and the business promotion expenses are 4,000 yuan.

[Requirements] Analyze and calculate the personal income tax payable by Fan Guifang of Changhe (Baiyin) Textile Machinery Factory in 200 1 year.

[Legal basis] Individual Income Tax Law of the People's Republic of China and Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China.

[Calculation and analysis] The tax law stipulates that the investor's own salary shall not be deducted before tax, and the allowable deduction of the investor's expenses is:

800 yuan/month × 10 month = 8,000 yuan;

Taxable wage limit = 860 yuan/person/month × 10 month × 9 persons = 77,400 yuan,

Overtime salary = (110 000-6 000)-77 400 = 26 600 yuan;

The taxable income should be increased = 26,600+6,000-8,000 = 24,600 yuan.

According to the tax law, the actual trade union funds, employee welfare funds and employee education funds incurred by an enterprise are deducted according to the facts within the standards of 2%,14% and1.5% of its total taxable wages respectively.

The deduction limit of trade union funds = 77,400× 2% =1548 (yuan), which is greater than the actual amount, should be deducted according to the actual data.

The taxable income should be increased = 2 200-500 =1700 (yuan).

Deduction limit of employee welfare expenses = 77,400×14% =10,836 (yuan), which is greater than the actual amount, shall be deducted according to the actual data.

The taxable income should be increased =15400-10000 = 5400 yuan;

The deduction limit of employee education funds = 77,400×1.5% =1161(yuan), which is less than the actual amount.

Taxable income to be increased =1650-1161= 489 (yuan)

Total taxable income increased by "three expenses" =1700+5400+489 = 7589 (yuan)

Limit of business entertainment expenses = (800 000+40 000) × 5 ‰ = 4 200 (yuan),

Taxable income should be increased = 6800-4200 = 2600 (yuan)

According to the tax law, the part of advertising expenses and business promotion expenses incurred by an enterprise in each tax year that does not exceed 2% of the sales (business) income in that year can be deducted according to the facts, and the excess part can be carried forward to future tax years indefinitely.

The limit of advertising expenses and business promotion expenses = (800,000+40,000) × 2% =16,800 yuan,

Taxable income should be increased = (21000+4 000)-16 800 = 8 200 (yuan)

To sum up the calculation results, the taxable income of Fan Guifang of Changhe (Baiyin) Textile Machinery Factory in 200 1 year 3-1February.

＝5000＋24600＋7589＋2600＋8200

= 47,985 (yuan)

As mentioned above, the tax law stipulates that if an enterprise starts business in the middle of a year, or the actual operating period of the tax year is less than 12 months due to merger or closure, its actual operating period shall be regarded as a tax year. Due to the excessive progressive tax rate of 5%-35% for the income from production and operation and personal income tax, the income with an operating period of less than one year (whether it exceeds 50,000 yuan or not) needs to be converted into the annual taxable income for calculation (the opening or closing in the middle of each month is calculated as one month). However, the taxpayer's liquidation income and contracted lease income shall be regarded as the annual production and operation income, and the conversion method shall not be adopted.

The taxable income converted into the whole year is = 47,98510×12.

= 57,586.8 (Yuan)

The taxable amount calculated according to the annual income is = 57,586.8× 35%-6,750.

=13 405.38 (yuan)

Actual tax payable =13 405.38 ÷12×10 =1171.15 (Yuan

Things that are easy to be confused between personal income tax and enterprise income tax pre-tax deduction items

(1) Special provisions for deduction of wages and expenses of investors. The wages of investors in sole proprietorship enterprises and partnership enterprises shall not be deducted before tax, but the expenses of investors are allowed to be deducted. The specific standards shall be determined by the local tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government with reference to the expense deduction standards of the "income from wages and salaries" item in the individual income tax law.

(2) The criteria for defining fixed assets are different. Article 33 of the Measures for Taxation stipulates that houses, buildings, machinery, equipment, means of transport and other equipment and appliances related to production and operation that have been used by self-employed individuals (sole proprietorship enterprises and partnership enterprises) for more than one year and whose units are more than 1000 yuan are fixed assets.

Article 29 of the Detailed Rules for the Implementation of the Provisional Regulations on Enterprise Income Tax stipulates that the taxpayer's fixed assets refer to houses, buildings, machines, machinery, means of transport and other equipment, appliances and tools related to production and business operations with a service life of more than one year. Articles that do not belong to the main equipment for production and operation, with a unit value of more than 2,000 yuan and a service life of more than two years, shall also be regarded as fixed assets.

(3) Different standards are allowed to deduct fixed assets before tax. Article 6 of the "Regulations" stipulates that the income from production and operation shall be determined by referring to the "Measures for the Taxation of Individual Income Tax of Individual Industrial and Commercial Households (Trial)" (Guo Shui Fa [1997] No.43). Among them, Article 23 of the Tax Measures stipulates that the development expenses incurred by self-employed individuals in researching and developing new products, new technologies and new processes, as well as the purchase expenses of testing instruments and experimental devices with a single value of less than 50,000 yuan for researching and developing new products and technologies are allowed to be deducted; Test instruments and experimental devices with a single value of more than 50,000 yuan, as well as other equipment purchased to meet the standard of fixed assets, shall be managed as fixed assets and shall not be deducted in the current period.

(4) In terms of enterprise income tax, the Ministry of Finance and State Taxation Administration of The People's Republic of China Caigongzi (96) No.41stipulate that the key equipment and testing instruments for trial production purchased by taxpayers for developing new technologies and new products, with a single unit value of less than100000 yuan, can be amortized into the management expenses at one time or several times. Among them, those that meet the standard of fixed assets should be managed separately, and depreciation is no longer extracted.

(5) The calculation methods of pre-tax deduction of advertising expenses and business promotion expenses are different. Paragraph 6 of Article 6 of the Regulations stipulates that the advertising and business promotion expenses incurred by an enterprise in each tax year do not exceed 2% of the sales (business) income of that year, which can be deducted according to the facts; The excess can be carried forward to future tax years indefinitely. This regulation means that the sum of advertising fees and business promotion fees does not exceed 2% of the sales (business) income of the year. The Measures for Pre-tax Deduction of Enterprise Income Tax (Guo Shui Fa (2000) No.84) stipulates that the advertising expenses incurred by taxpayers in each tax year do not exceed 2% of sales (business) income, which can be deducted according to the facts. The excess can be carried forward to future tax years indefinitely; The business publicity expenses incurred by taxpayers in each tax year shall not exceed 5‰ of sales (business) income. Within the scope, can be deducted according to the facts.

(6) The restrictions on pre-tax deduction of reserves are different. Article 6, paragraph 8, of the Regulations stipulates that all kinds of reserves accrued by enterprises shall not be deducted. Article 18 of the Detailed Rules for the Implementation of the Provisional Regulations on Enterprise Income Tax stipulates that the provision for doubtful debts and commodity discount reserve drawn by taxpayers according to the provisions of the Ministry of Finance are allowed to be deducted when calculating the taxable income.