2. Loss donation, the expenditure that has been confirmed in accounting, is the income of the enterprise MINUS the cost and the profit after deducting the expenses. When the product is used for loss donation, because there is no income to confirm, the income is not confirmed in accounting, and the confirmed income cannot be recovered, which will also lead to losses. The profit result at this time is the real profit situation of the enterprise.
3. In order to prevent tax reduction, enterprises use tax loopholes to pay less enterprise income tax. According to the provisions of Guoshuihan No.828 [2008]:
Two, the enterprise will transfer assets to others in the following circumstances, due to changes in the ownership of assets and does not belong to the internal disposal of assets, should be regarded as sales to determine income.
(a) for marketing or sales;
(two) for social and entertainment;
(three) for employee rewards or benefits;
(4) Distribution of dividends.
(5) Accepting donations from abroad;
(six) other purposes of changing the ownership of assets.
4. Due to the above reasons.
When regarded as sales, enterprise income tax increases taxable income. In tax adjustment, the deemed sales income and deemed sales cost are calculated separately, and the taxable income is collected after the two are offset.
If it is only recognized as income at the time of sales, it is equivalent to adjusting and increasing all sales income (excluding value-added tax) for enterprises, which violates the term "income from enterprise income tax", not taxable income, but turnover.
5, special tips:
If the goods are given to others free of charge, it should also be regarded as sales value-added tax. When it is regarded as sales, the enterprise has only cost and no income on its books. At the same time, the output tax of value-added tax is calculated at market price and included in non-operating expenses.
Document basis: Article 4 of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Order No.50 "Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax" of the Ministry of Finance stipulates: "The following acts of units or individual operators shall be regarded as selling goods:
(1) Entrusting the goods to others for consignment;
(2) Consignment of goods;
(three) taxpayers with more than two institutions and unified accounting transfer goods from one institution to other institutions for sale, except that the relevant institutions are located in the same county (city);
(4) using self-produced or entrusted goods for non-taxable items;
(5) Providing the goods produced, entrusted or purchased as investment to other units or individual operators;
(6) Distributing commodities produced, entrusted or purchased to shareholders or investors;
(seven) the goods produced or commissioned for processing are used for collective welfare or personal consumption;
(8) Giving the goods commissioned for production, processing or procurement to others free of charge. "
The above are regarded as sales, and all of them should pay VAT as required.