The calculation of taxpayers' taxable income is based on the accrual basis. Taxpayers' income from the following business operations can be determined by stages, and the taxable income can be calculated accordingly.

1. When selling goods by installment, the realization of sales revenue can be determined according to the date when the buyer pays the price as agreed in the contract.

2. If the construction, installation and assembly projects and the provision of labor services last for more than one year, the realization of income can be determined according to the completion schedule or the workload completed. ?

3. If the processing and manufacturing of large-scale machinery and equipment, ships, etc. for other enterprises lasts for more than one year, the realization of income can be determined according to the completion schedule or the workload completed. Extended information

On the balance sheet date, if the result of the construction contract can be reliably estimated on the balance sheet date, the contract income and contract expenses shall be confirmed according to the percentage of completion method. When judging whether the result of construction contract can be estimated reliably, we should pay attention to distinguish between fixed cost contract and cost plus contract.

on the balance sheet date, if the result of the construction contract cannot be reliably estimated on the balance sheet date, it shall be handled as follows: if the contract cost can be recovered, the contract income shall be recognized according to the actual contract cost that can be recovered.

it should be pointed out that if the uncertain factors that make the result of the construction contract unreliable no longer exist, the contract income and contract cost should be confirmed by the percentage of completion method.

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