This article is about the accounting processing content of the tax treatment of profits of foreign-invested enterprises. The main text introduces in detail the relevant financial and taxation knowledge of the tax treatment of profits of foreign-invested enterprises during the work and study process of financial and tax personnel. We firmly believe that we can solve it for you. Financial and taxation learning and work issues on the tax treatment of profits of foreign-invested enterprises. Tax treatment of profits of foreign-invested enterprises When a foreign-invested enterprise invests in other enterprises in China, the profits (dividends) it obtains from the invested enterprises in the country may not be included in the taxable income of the enterprise, but the feasibility study related to the investment Expenses, investment loan interest payments, investment management fees and other expenses in the implementation of investment decisions, as well as investment losses that cannot be recovered upon expiration of the investment period, etc., shall not be offset against the taxable income of the enterprise. Foreign-invested enterprises engaged in investment business should reasonably and accurately calculate domestic investment income and operating business income, as well as their respective related costs, expenses and losses. How to handle accounting for foreign investment 1. Foreign investment with fixed assets. When the investor invests externally with fixed assets, the "long-term equity investment" account will be debited with the price agreed upon by both parties, and the "accumulated depreciation" account will be debited with the accumulated depreciation amount. The "fixed assets" account is credited with its original book value. The "Capital Reserve" account is debited or credited with the difference between the net price agreed between the parties and the net book value of the fixed assets. 2. Invest overseas with inventory. When the investor invests externally with inventory, it should debit the "long-term equity investment" account according to the agreed price, credit the "raw materials", "finished goods" and other accounts with its original book value, and debit the difference between the agreed price and the actual cost. Or credit the "Capital Reserve" account. If the inventory is costed according to the plan, the cost difference that should be borne by the delivered inventory must also be allocated through the "Material Cost Variance" account. 3. Invest externally with intangible assets. If the investor invests externally with unaccounted intangible assets (such as land use rights, etc.), the "long-term equity investment" account should be debited and the "capital reserve" account should be credited according to the value confirmed after asset appraisal. If an enterprise invests externally with non-patented technology, patent rights and other intangible assets that have been accounted for, then the value should be recognized based on appraisal. The "long-term equity investment" account is debited. The "intangible assets" account is credited according to the book amortized value of the intangible asset, and the "capital reserve" account is debited or credited according to the difference between the appraisal price and the book value. I believe that the above explains the tax treatment of profits of foreign investment enterprises, and also introduces the accounting treatment of profits of foreign investment enterprises. In fact, tax treatment focuses on the time of tax payment, and accounting treatment focuses on the time when business occurs. As long as you make a good distinction, you can conduct correct accounting. If you still don’t understand, it is recommended to consult an online accounting teacher. The above is the complete interpretation of "Tax Treatment of Profits of Foreign Investment Enterprises" by Accounting Practical Practice. If all accounting friends have relevant financial and taxation issues when studying "Tax Treatment of Profits of Foreign Investment Enterprises" and study questions, you can leave comments in the comment area.

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