Can product quality indemnity be deducted before tax? Product quality indemnity can be deducted before enterprise income tax.
The quality compensation expenses incurred are normal expenses in the course of operation and can be directly deducted before tax.
A Special Vehicle Co., Ltd. (hereinafter referred to as Party A, located in Jiangsu Province) is engaged in the manufacture and sales of special vehicles, special vehicles and modified vehicles. In May of 20 14, Party A signed a quality indemnity agreement with A Logistics Co., Ltd. (Party A), the main contents of which were: 30 cars purchased by Party A had serious quality problems such as serious bending deformation at the rear end of the upper platform, cracking and oil leakage in the lifting tank at the rear end. Party A agrees to compensate 400,000 yuan for the round-trip vehicle expenses, vehicle insurance and maintenance expenses. This fee will be deducted from the quality guarantee, and Party A will issue a receipt. When Party A accepts the sales order, it has paid the quality deposit as agreed in the contract, which is reflected in "other receivables" as1000000 yuan. The financial department makes the following accounting treatment:
? Debit: non-operating expenses of 400,000 yuan
? Credit: other receivables 400,000.
There are three different opinions on whether the quality compensation paid by Party A can be deducted before tax.
The first opinion is that the quality indemnity included in "non-operating expenses" cannot be deducted before tax because Party A has not obtained the invoice.
The second opinion is that the quality compensation expenses incurred should be offset against "other receivables", which belongs to the write-off of bad debts, and can be deducted before tax according to the Administrative Measures of State Taxation Administration of The People's Republic of China on Pre-tax Deduction of Enterprise Asset Losses (State Taxation Administration of The People's Republic of China Announcement No.2011Year No.25).
The third opinion is that the quality compensation paid by Party A is a normal expenditure in the course of operation and can be directly deducted before tax.
Which of these three opinions is correct?
explain
? According to the pre-tax deduction principle of the Enterprise Income Tax Law and the Announcement of Jiangsu Local Taxation Bureau on Issuing the Administrative Measures for Pre-tax Deduction Certificates of Enterprise Income Tax (Jiangsu Local Taxation Bureau [201]13), the management of pre-tax deduction certificates should follow the principles of authenticity, legality and effectiveness. Authenticity refers to the fact that the expenditure reflected by the pre-tax deduction certificate has indeed occurred, which is the first principle. Legitimacy means that the source and form of the pre-tax deduction certificate conform to the provisions of national laws and regulations. Validity means that the voucher can fully reflect that the expenses incurred by the enterprise comply with the provisions of the tax law. The expenses incurred by an enterprise due to quality problems of products (services), such as indemnity and liquidated damages, shall be deducted before tax with the quality indemnity agreement, quality inspection report (or quality accident appraisal) related contracts, court documents and payment documents signed by both parties.
According to the above tax policy, the first opinion is obviously wrong. If Party A is required to obtain the invoice before the product quality compensation can be paid, Party A can be required to issue the Application Form for Issuing Special VAT Invoice in Red Letter to the competent tax authorities by way of concession. In the Notice of Issuing Special VAT Invoices in Red Letter issued after examination by the competent tax authorities, Party A issues red-letter VAT invoices to offset the income from its main business. There is no dispute about pre-tax deduction in this way, but there is no such clause in the indemnity agreement. In practice, this operation is also cumbersome, and buyers are unwilling to settle quality claims in this way.
The second opinion is also incorrect. In the form of accounting treatment, it seems that bad debts are written off, but from the substantive analysis of business occurrence, offsetting transactions is indirectly charged to quality compensation. For example, the quality compensation paid by bank deposit can be deducted before tax, and the quality compensation paid by transfer is to write off bad debts and cannot be directly deducted before tax, so its conclusion is untenable.
To sum up, the third opinion is correct.
Can the compensation be deducted before tax? For court enforcement. You take the court's judgment, the enforcement document and the receipt of deduction as the basis for pre-tax deduction.
Because it is not the court that deducts the money and then uses it for itself. So they can't issue invoices.
Also, the court is not an enterprise, and there is no invoice at all. They are administrative units. Administrative units only have unified receipts for administrative undertakings. It's stamped by the Finance Bureau.
Hope the landlord will adopt it
Shenyang Kingdee Finance will answer your questions.
Can compensation and liquidated damages be deducted before tax? Compensation and liquidated damages are losses caused by violation of contract terms, unlike other illegal acts, so they can be deducted before tax. If it is due to illegal fines and late fees, it can not be deducted before tax.
According to Article 8 of the Enterprise Income Tax Law of the People's Republic of China, "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."
Therefore, the liquidated damages and compensation paid in economic transactions are allowed to be deducted before tax.
Can the compensation paid by the enterprise be deducted before tax? The compensation paid by the enterprise can be deducted before tax.