Value added tax treatment
Provide taxable services for the reform of the camp for free.
Notice on Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax in an All-round Way [2016] No.36 stipulates that the following situations shall be regarded as selling services, intangible assets or real estate:
(a) units or individual industrial and commercial households provide services to other units or individuals free of charge, except for public welfare undertakings or for the public.
(2) A unit or individual transfers intangible assets or immovable property to other units or individuals free of charge, unless it is used for public welfare undertakings or for the public.
(3) Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
In the above provisions, the taxable behavior of "for public welfare or for the public" provided free of charge is clearly listed as an exception as sales.
How to understand this exception? According to the Law of the People's Republic of China on Donation of Public Welfare, the public welfare refers to the following non-profit items: (1) activities of social groups and individuals in need such as disaster relief, poverty relief and assistance to the disabled; (2) Education, science, culture, health and sports; (three) environmental protection, public facilities construction; (4) Other public interests and welfare undertakings that promote social development and progress.
It can be seen that the unpaid taxable behavior of disaster relief public welfare undertakings meets the exception that it is not necessary to pay VAT as sales. If transportation services are provided free of charge, reconstruction services in disaster areas, etc., it is not necessary to pay VAT as sales.
Provide goods such as daily necessities free of charge
Item (8) of Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax stipulates that it is necessary to treat the goods produced, processed or purchased as sales goods and give them to other units or individuals for free.
According to the above regulations, unlike providing taxable services to the disaster-stricken areas free of charge, if the goods produced, processed or purchased are given to the disaster-stricken areas free of charge, value-added tax is required.
Personal income tax treatment
Pre-tax deduction ratio
According to the Individual Income Tax Law and its implementing regulations, individuals donate their income to education and other social welfare undertakings and areas suffering from serious natural disasters and poverty-stricken areas through social organizations and state organs in China, and the part of the donation that does not exceed 30% of the taxable income declared by taxpayers can be deducted from their taxable income.
Except for special items that can be deducted in full, such as donations to rural compulsory education.
Pre-tax deduction bill
According to the Interim Measures for the Administration of the Use of Donation Notes for Public Welfare, natural persons who provide donations should also obtain donation notes for public welfare as valid documents for individuals to apply for pre-tax deduction of donations in accordance with relevant state regulations.
Example of personal income tax calculation:
When an actor's disaster happened, he just performed in a rural area in a neighboring county, earning 50,000 yuan, and immediately donated 20,000 yuan to the disaster area through the local civil affairs bureau. How to pay personal income tax?
1, the deductible donation of this individual before tax: [50000 * (1-20%)] x30% =12000 yuan.
2. Personal income tax payable: [50000 * (1-20%)-12000] * 30%-2000 = 6400 yuan.
At the same time, the Reply of State Taxation Administration of The People's Republic of China on the Application for Refund of Paid Individual Income Tax after Personal Donation (Guo Shui Han [2004] No.865) stipulates that donations to education and other public welfare undertakings that individuals are allowed to deduct before tax should belong to the taxable income in the current tax declaration period; The donation balance that cannot be fully deducted in the current period shall not be transferred to other taxable income items or deducted from the taxable income in the subsequent tax declaration period, nor shall it be retroactively deducted from the taxable income in the previous tax declaration period.
That is, the actual donation of 20,000 yuan exceeds the pre-tax deductible12,000 yuan, and the excess of 8,000 yuan cannot be carried forward for deduction.
Enterprise income tax treatment
Pre-tax deduction ratio
The Enterprise Income Tax Law stipulates that the portion of the public welfare donation expenses incurred by an enterprise that is within 12% of the total annual profit is allowed to be deducted when calculating the taxable income; The part exceeding the total annual profit 12% shall be deducted when calculating the taxable income within three years after the carry-over.
It should be emphasized that the "total annual profit" here refers to the annual accounting profit calculated by the enterprise in accordance with the provisions of the national unified accounting system.
Pre-tax deduction bill
According to the Measures for the Administration of Financial Bills and the Interim Measures for the Administration of the Use of Public Welfare Donation Bills, public welfare donation bills refer to the vouchers issued by state organs, public welfare institutions, public welfare social organizations and other public welfare organizations when they accept public welfare donations according to law.
Donation bills are the original vouchers of accounting and the basis for supervision and inspection by finance, taxation, auditing and supervision departments. It is a valid certificate for donors to donate to foreign countries and apply for pre-tax deduction of donations according to relevant state regulations.
Groups or departments that can deduct the donation limit before tax.
The public welfare donation that can be deducted before enterprise income tax refers to the donation that the enterprise uses for public welfare undertakings stipulated in the Law of the People's Republic of China on Donation to Public Welfare Undertakings through public welfare social organizations or people's governments at or above the county level and their departments.
Enterprises or individuals who have obtained the pre-tax deduction qualification for public welfare donations or the people's governments at or above the county level and their constituent departments and directly affiliated institutions can make pre-tax deduction of income tax for donation expenses of public welfare undertakings according to regulations. Among them:
The people's governments at or above the county level and their constituent departments and directly affiliated institutions do not need to identify the pre-tax deduction qualification of public welfare donations.
The pre-tax deduction qualification of donations from public welfare social organizations shall be jointly confirmed by the departments of finance, taxation and civil affairs in combination with the registration of social organizations and public welfare activities, and a list shall be published in the form of an announcement.
Public welfare donations made by enterprises or individuals to public welfare social groups in the list in the year to which the list belongs may be deducted before tax according to regulations.
Special policy provisions
In order to co-ordinate and guide all forces, support and help the recovery and reconstruction after the catastrophic geological disasters and disasters, and make the basic production and living conditions and economic and social development in the disaster areas fully recover and exceed the pre-disaster level, the state has successively issued some special tax policies to support post-disaster recovery and reconstruction. Donations involving goods are exempt from VAT and surcharges; Donations made by enterprises and individuals that meet the requirements shall be fully deducted before tax; The documents of property right transfer written for disaster-stricken areas or residents are exempt from stamp duty and so on.
It should be noted that donations can be deducted in full before enterprise income tax, and loss-making enterprises can also deduct donations, and the losses formed can be made up within the prescribed period of time.
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