It is understood that enterprise income tax is a tax levied on the taxable income of enterprises. To calculate the taxable income, we must first confirm the income, which is an important premise of enterprise income tax. The income in enterprise income tax refers to the funds, accounts receivable or other forms of income that can generate interest, royalties and dividends due to the sale of goods, the provision of services and the use of their assets by others in the normal production and operation activities of an enterprise. The "Notice" mainly clarifies the recognition of enterprise income tax from three aspects.
First of all, the confirmation of enterprise sales revenue must follow the accrual principle and the principle that substance is more important than form.
The "Notice" specifies in detail the conditions for enterprises to sell goods and the time for confirming the realization of income. When an enterprise sells goods that meet the following conditions, it shall confirm the realization of income: the contract for the sale of goods has been signed, and the enterprise has transferred the main risks and rewards related to the ownership of goods to the buyer; The enterprise has neither retained the right to continue management, which is usually associated with ownership, nor effectively controlled the sold goods; The amount of income can be measured reliably; The costs incurred or to be incurred by the seller can be recorded reliably. If the conditions for revenue recognition in the preceding paragraph are met, the realization time of revenue shall be confirmed in accordance with the following provisions if the following commodity sales methods are adopted: if the goods are sold by collection or acceptance, the revenue shall be confirmed when the collection procedures are completed. If the goods are pre-sold, the income shall be recognized when the goods are issued. If the goods to be sold need to be installed and inspected, the income shall be recognized when the buyer accepts the goods and completes the installation and inspection. If the installation procedure is simple, you can confirm the income when you send the goods. If the goods are sold by commission, the income shall be confirmed when the list of sales agents is received.
The Notice also clarifies the income tax treatment of sales repurchase, trade-in, commercial discount, cash discount and discount return. If the goods are sold by after-sale repurchase, the income of the sold goods shall be confirmed according to the sales price, and the repurchased goods shall be treated as purchased goods. If there is evidence that it does not meet the conditions for the recognition of sales revenue, if financing is carried out by selling goods, the money received will be recognized as a liability. If the repurchase price is higher than the original selling price, the difference shall be recognized as the interest expense during the repurchase period. Where old goods are exchanged for new ones, the income of the sold goods shall be confirmed according to the confirmation conditions of the income of the sold goods, and the recovered goods shall be treated as purchased goods. The price discount given by enterprises in order to promote commodity sales belongs to commercial discount. Where commercial discounts are involved in the sale of commodities, the income from the sale of commodities shall be determined according to the amount after deducting the commercial discounts.
However, the debt deduction provided by the creditor to the debtor to encourage the debtor to pay within the prescribed time limit belongs to cash discount. Where cash discounts are involved in selling goods, the amount of income from selling goods shall be determined according to the amount before deducting cash discounts, and cash discounts shall be deducted as financial expenses when actually occurring. The concession given by an enterprise on the sales price due to the unqualified quality of the goods it sells belongs to the sales concession; Goods returned by enterprises due to the quality and variety of goods sold belong to sales returns. In case of sales discount and sales return of the sold goods whose sales revenue has been confirmed by the enterprise, it shall offset the current sales revenue in the current period.
Secondly, at the end of each tax period, if the result of providing labor services can be estimated reliably, the income from providing labor services should be confirmed by the completion progress (completion percentage) method.
The circular also explained in detail what is meant by "the result of providing services can be reliably estimated". The following conditions must be met at the same time: the amount of income can be measured reliably, the completion progress of the transaction can be determined reliably, and the costs that have occurred and will occur in the transaction can be calculated reliably. The completion progress of labor services provided by enterprises can be determined by the following methods: measurement of completed work, the proportion of labor services provided to total labor services, and the proportion of incurred costs to total costs.
For the confirmation of income amount, the Notice requires that the enterprise should determine the total labor income according to the contract or agreement price received or received from the receiving party, and multiply the total labor income provided at the end of the tax period by the completion progress, and deduct the labor income accumulated in the previous tax year, and confirm it as the current labor income; At the same time, according to the estimated total cost of providing labor services multiplied by the completion schedule, the amount after deducting the labor costs accumulated in the previous tax period is carried forward to the current labor costs.
Different from the past, the "Notice" also clarified the confirmation conditions and time for eight labor income, such as installation fee and membership fee. If the charge involves several activities, the money received in advance should be allocated to each activity reasonably and the income should be recognized separately. Membership fee, when applying for membership or joining membership, only members are allowed. If all other services or goods are charged separately, the income will be recognized when the membership fee is obtained. After applying to become a member or joining a member, a member can obtain various services or commodities without paying fees during the membership period, or sell commodities or provide services at a price lower than that of a non-member, and the membership fee is confirmed by stages throughout the benefit period.
It is worth noting that the Notice clearly stipulates that if an enterprise sells its own goods by buying one for free, it is not a donation, and it should share the total sales amount according to the proportion of the fair value of each commodity to confirm the sales income of each commodity.