According to the "Implementation Rules of the Interim Regulations of the People's Republic of China and State Business Tax", the financial and insurance industry refers to the business of operating finance and insurance.

The financial and insurance industry mainly pays business tax, urban maintenance and construction tax, education surcharge, corporate income tax, etc.

1. Business tax

(1) Scope of taxation

Business scope of finance and insurance

1. Finance refers to business Monetary capital circulation activities include loans, financial leasing, financial product transfer, financial brokerage and other financial businesses.

(1) Loan refers to the business of lending funds to others for use, including self-owned fund loans and on-lending.

Owned capital loans refer to lending one’s own capital or deposits from units and individuals absorbed to others.

On-lending refers to lending borrowed funds to others.

The mortgage loan business of the pawn industry, regardless of its source of funds, is taxed as an own-fund loan. There is no tax on the loan business of the People's Bank of China.

(2) Financial leasing refers to the equipment leasing business with the characteristics of financing and ownership transfer. That is: the lessor purchases equipment and leases it to the lessee according to the specifications, models, performance and other conditions required by the lessee. During the contract period, the ownership of the equipment belongs to the lessor, and the lessee only has the right to use it. After the rent is paid off at the end of the contract, the lessee A person has the right to purchase equipment based on its residual value to obtain ownership of the equipment. All financial leases, regardless of whether the lessor sells the residual value of the equipment to the lessee, are taxed according to this tax item.

(3) Financial product transfer refers to the act of transferring ownership of foreign exchange, securities or non-goods futures.

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Non-cargo futures refer to futures other than commodity futures and precious metal futures, such as foreign exchange futures.

(4) Financial brokerage industry refers to the business of entrusting others to operate financial activities on behalf of others.

(5) Other financial businesses refer to various financial businesses other than the above-mentioned businesses, such as bank settlement, bill discounting, etc. No business tax is levied on deposits or purchases of financial products.

2. Insurance

Insurance refers to the business of pooling funds through contracts to compensate the economic interests of the insured.

(2) Basis for tax calculation

According to regulations, the tax calculation turnover of the financial industry includes: loan interest, financial leasing income, financial product transfer income and financial brokerage and other Fee income from financial services.

(1) Turnover of loan business

①The turnover of loan business is the interest earned by taxpayers from loans.

②According to the "Notice of Forwarding the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Collection of Business Tax in the Financial Industry" (Jingcaishui [1995] No. 2281): On-lending business only refers to on-lending foreign exchange business, with loans The balance of interest income minus borrowing interest expenses is the turnover, and business tax is calculated and levied; for other loan businesses, business tax is calculated and levied based on the full amount of loan interest income.

③According to the "Notice on Forwarding the Notice of the State Council on Issues Related to Adjusting Tax Policies for the Financial and Insurance Industry" (Caishuizi [1997] No. 45): the time when the overdue loan tax liability of financial institutions occurs , is the day when the taxpayer obtains the right to interest income. For overdue loans that exceed the accounting period for loan collection, business tax may be levied based on the interest income actually received.

The accounting period for loan collection shall be implemented in accordance with the relevant provisions of the financial system.

④ Regarding the taxation of long-term cashiers and settlement fines

According to the "Notice on Forwarding the "Notice of the State Council on Adjusting Issues Related to Tax Policies for the Financial and Insurance Industry"" (Finance and Taxation Zi) [1997] No. 45) stipulates that no business tax will be levied on the long-term income of cashiers of financial institutions.

The settlement fines, penalty interest, interest rate increases and other income actually received by financial institutions in the current period should be incorporated into the turnover to collect business tax.

⑤ Regarding the withholding and payment of business tax for entrusted loan business

When a financial institution accepts entrustment from other units or individuals to handle entrusted loan business for them, if the entrusting party’s funds are transferred to Transfer the funds to the handling agency, which will lend the funds to the user unit or individual. When collecting business tax, the handling agency that ultimately issues the loan to the user unit or individual and obtains the loan interest will withhold the business tax payable by the entrusting party. and pay it to the competent tax authority where the handling agency is located.

⑥ Regarding the issue of business tax collection on RMB on-lending business

Foreign-funded banks that have been approved to operate RMB business shall comply with the "Ministry of Finance and the State Administration of Taxation on Issues Concerning the Collection of Business Tax in the Financial Industry" Notification" (Caishuizi [1995] No. 79), that is, the RMB on-lending business is treated as a general loan business, and business tax is calculated based on the full amount of interest income as the turnover; business tax is temporarily not levied on RMB inter-bank transactions between foreign-funded financial institutions .

⑦ Regarding the issue of whether business tax can be levied on the foreign exchange re-lending business when self-owned capital is deposited in overseas banks and then borrowed for lending.

In the course of operation, some foreign-funded banks, in addition to transferring their own capital as required by regulations, 30% of the capital is deposited outside the People's Bank of China, and the remaining part is deposited in an overseas affiliated bank, and will be borrowed from the affiliated bank when it issues a loan.

The part of the above-mentioned loans that is equivalent to the balance of self-owned capital deposits does not belong to the "transfer" mentioned in Article 2 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Collection of Business Tax in the Financial Industry" (Caishuizi [1995] No. 79) "Lending foreign exchange business" has the nature of "lending one's own funds to others for use" as stated in Article 20 of the "Implementing Rules for the Interim Regulations of the People's Republic of China and the State on Business Tax". Therefore, for foreign-funded banks that borrow funds from overseas affiliated banks that deposit their own capital to provide external loans, the business tax on the loan equal to the portion of their own capital deposited shall be levied on the full amount of interest income.

⑧ Rural cooperative foundations established in rural areas invest their own capital, absorbed shares and other funds to members or other units and individuals for use, and charge fund occupation fees, which is a business tax "Business of lending funds to others for use" in the tax item annotation. Therefore, whether it is self-service within the scope of the regulations or services beyond the scope of the regulations, business tax should be levied in accordance with the "finance and insurance industry" tax category on the full amount of capital occupation fees or interest income collected.

⑨ According to the "Notice of Forwarding the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Collection of Business Tax in the Financial Industry" (Jingcaishui [1995] No. 2281): Starting from January 1, 1995, financial institutions Business tax will not be levied on current business for the time being. Taxes collected into the treasury for the tax period of 1995 should be refunded.

For taxes that belong to the year 1994, if business tax has not been levied, no additional tax will be levied; if business tax has been levied, no tax refund will be granted, and no business tax payable in subsequent years will be offset.

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Certain Taxation Issues in the Financial Industry" (Caishuizi [2000] No. 191): The business transactions of financial institutions that are temporarily exempt from business tax refer to financial institutions. The business of occupying and lending funds to each other does not include services provided to each other (such as agency settlement, agency issuance of financial bonds, etc.). Business tax shall be levied on the income obtained by financial institutions from providing services to each other in accordance with regulations.

(2) Financial leasing turnover

According to the "Notice on forwarding the "Notice of the State Council on Adjusting Issues Related to Tax Policies for the Financial and Insurance Industry" (Caishuizi [1997] No. 45 ) and the "Notice on Issues Concerning Business Tax Calculation and Turnover of the Financial Leasing Industry" (Caishuizi [1999] No. 183) stipulates that when a taxpayer operates a financial leasing business, the entire price and extra-price fees (including residuals) collected from the lessee shall be Value) minus the actual cost of the leased goods borne by the lessor is the turnover.

The actual cost of the leased goods includes the overseas foreign exchange borrowing interest expenses incurred by the taxpayer to purchase the leased goods, the purchase price of the goods, customs duties, value-added tax, consumption tax, transportation and miscellaneous charges, installation fees, etc. borne by the lessor. Insurance premiums and other expenses.

(3) Turnover from the transfer of financial products

① The taxable sales volume from the purchase and sale of foreign exchange is the income earned by the operator from the purchase and sale of foreign exchange based on changes in the foreign exchange market conditions.

②The taxable sales amount from buying and selling securities is the income earned by operators from buying and selling foreign exchange based on changes in the securities market conditions, that is, the difference between the buying and selling prices of securities.

(4) Turnover of the financial brokerage industry

Refers to the handling fees earned by financial institutions engaged in the financial brokerage industry.

(5) Turnover from other financial businesses

Refers to the handling fees earned by financial institutions from engaging in various other financial businesses.

① According to the "Notice on Forwarding the Notice of the State Council on Adjusting Issues Related to Tax Policies for the Financial and Insurance Industry" (Caishuizi [1997] No. 45): For financial institutions to handle discount and bill advance business, "Other financial services" are subject to business tax. The income derived by financial institutions from engaging in rediscounting and rediscounting business belongs to transactions between financial institutions and is not subject to business tax for the time being.

②According to the relevant provisions of the current financial system of financial and insurance enterprises, and in accordance with the requirements for regulating the financial management of financial and insurance enterprises, government bond fee income should be included in the unified accounting of operating income of financial institutions.

The above-mentioned financial institutions include the People's Bank of China, commercial banks, insurance companies, securities companies, securities investment fund management companies, trust investment companies, finance companies, urban credit cooperatives, rural credit cooperatives, etc.

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Certain Taxation Issues in the Financial Industry" (Caishuizi [2000] No. 191):

Procedures for banks to issue government bonds on their behalf For fee income, each bank head office shall pay business tax in full based on the handling fees collected from the Ministry of Finance. Business tax will no longer be levied on the handling fee income of each branch from its superior bank.

2. Turnover of the insurance industry

The turnover of the insurance industry is the premium earned by insurance institutions from operating insurance business.

(1) Regarding the taxation issues for insurance companies handling deposit business

According to the "Notice on forwarding the "Notice of the State Council on Adjusting Issues Related to Tax Policies for the Financial and Insurance Industry"" ( Cai Shui Zi [1997] No. 45) stipulates:

Customer deposit business refers to an insurance company that does not directly collect premiums from policy holders when handling insurance business, but collects a certain amount of due payments from policy holders. The funds that should be returned (called reserves) are used as premium income.

The turnover of the deposit business is calculated by multiplying the taxpayer's average deposit balance during the tax period by the monthly interest rate converted from the one-year deposit interest rate published by the People's Bank of China. The average savings balance is the sum of the savings balance at the beginning of the tax period and the balance at the end of the tax period multiplied by 50%.

After calculating the turnover of the deposit business in accordance with the above provisions, when calculating the turnover of other businesses of the insurance company, the premium income of the deposit business should be deducted from the operating income of the "premium income" account accordingly.

If the income obtained by taxpayers from using the collected savings falls within the scope of business tax, business tax shall be levied in accordance with relevant regulations.

(2) Regarding the taxation of primary insurance and reinsurance business

According to the provisions of the "Implementation Rules of the Interim Regulations of the People's Republic of China and the State on Business Tax": the insurance industry implements reinsurance For insurance, the turnover of the primary insurance business shall be the balance of all premium income minus the premium paid to the cedant. In order to simplify the procedures, during the actual collection process, the primary policy holder can be taxed on the full amount of the premium income it collects from the policy holder (that is, without deducting reinsurance premium expenses), and no business tax will be levied on the reinsurance premium income obtained by the cedant. .

3. According to the "Notice on Forwarding the "Notice of the State Council on Issues Related to Adjusting Tax Policies for the Financial and Insurance Industry" (Caishuizi [1997] No. 45): Regarding the taxation of the special economic zones (including Shanghai Pudong) The issue of the division of operating income from inside and outside the special zone for foreign investment and foreign financial enterprises (hereinafter referred to as foreign financial institutions) in the New District and Suzhou Industrial Park, the same below.

The income of foreign-funded financial institutions in the special economic zone originates from the special zone, which refers to the operating income obtained by foreign-funded financial institutions directly providing financial and insurance services to units located in the special zone; the income derived from outside the special zone Income refers to the operating income obtained by foreign-funded financial institutions directly providing financial and insurance services to units located outside the special zones.

The business income derived by foreign-funded financial institutions in the special economic zone from sources within and outside the special zone shall be accounted for separately; if it is not accounted for separately or cannot be accounted for separately, it shall be regarded as business income from outside the special zone and levied business tax. .

4. Regarding the taxation of bill fees, voucher fees, postage and telecommunications fees collected by financial institutions

According to the "Implementation Rules of the Interim Regulations of the People's Republic of China and the State on Business Tax" According to the relevant regulations, while financial institutions provide financial services, they sell bill vouchers, checks, etc., which are mixed sales that are subject to business tax, and this sales revenue should be incorporated into the turnover to collect business tax.

According to the relevant provisions of the "Interim Regulations of the People's Republic of China and the State Business Tax" and the "Implementation Rules of the Interim Regulations of the People's Republic of China and the State Business Tax", financial institutions provide financial and insurance industry labor services and collect postal and telecommunications services. Fees should also be incorporated into turnover to collect business tax.

5. Regarding the issue of business tax collection on offshore banking services of foreign-funded financial institutions

According to the "Implementation Rules of the Interim Regulations of the People's Republic of China and the State on Business Tax" and the "Regulations on Foreign Enterprises of the State Administration of Taxation" "Notice on whether business tax is levied on interest and rental income obtained in China" (Guo Shui Fa [1997] No. 35). According to the principle that the location of a financial institution determined by the relevant regulations is the place where the labor services are performed, foreign-funded financial institutions in my country engaged in offshore banking business, It belongs to the provision of business tax taxable services within the territory of my country, and its interest income shall be levied business tax in accordance with regulations.

For offshore business income other than interest income obtained by foreign-funded financial institutions, in order to facilitate management, the place where the business tax taxable services are generated shall be determined based on the location of the institution based on the treatment of interest income.

The so-called offshore banking business refers to the financial activities in which banks absorb funds from non-residents and serve non-residents. Offshore banking business includes: foreign exchange deposits, foreign exchange loans, inter-bank foreign exchange lending, international settlement, issuance of large-amount transferable certificates of deposit, foreign exchange guarantees, consulting and witness services, and other businesses approved by the State Administration of Foreign Exchange.

6. According to the "Notice on the Conversion of Foreign Exchange into RMB for the Financial and Insurance Industry" (Jingcaishui [1996] No. 1068), if the financial and insurance industry settles its turnover in foreign exchange, the financial industry shall The benchmark exchange rate announced by the People's Bank of China on the day it receives foreign exchange or at the end of the current quarter is converted into turnover. The insurance industry is converted into turnover based on the benchmark exchange rate announced by the People's Bank of China on the day it receives foreign exchange or at the end of the month, and business tax is calculated. , after the conversion rate chosen by the taxpayer is determined, it cannot be changed within one year.

7. According to the "Notice on Taxation Issues of Securities Investment Funds" (Jingcaishui [1998] No. 1234):

① Raising funds by issuing funds does not fall under the levy of business tax Within the tax scope, no business tax is levied.

② Fund managers using funds to buy and sell stocks and bonds will be temporarily exempt from business tax before the end of 2000.

③Business tax is levied on the price difference income from buying and selling funds by financial institutions (including banks and non-bank financial institutions); business tax is not levied on the price difference income from buying and selling funds by individuals and non-financial institutions.

8. Regarding the issue of business tax collection on uncollected interest receivable by financial enterprises

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on the issue of business tax collection on uncollected interest receivable by financial enterprises" ( Caishui [2002] No. 182) stipulates:

① The accounting period for financial enterprises’ receivable and uncollected interest shall be in accordance with the relevant provisions of the financial accounting system formulated by the Ministry of Finance or the State Administration of Taxation. According to the "Notice of the Ministry of Finance on Shortening the Accounting Period for Interest Receivable by Financial Enterprises" (Caijin [2002] No. 5): Starting from January 1, 2002, the accounting period for interest receivable and uncollected by financial enterprises will be changed from the original 180 days. Adjusted to 90 days. Therefore, the following adjustments are made to the business tax levied on loan interest of financial enterprises:

After a financial enterprise issues a loan (including self-operated loans and entrusted loans, the same below), any interest receivable and uncollected within the prescribed accounting period The interest receivable that occurs must be reported and paid business tax in accordance with regulations; if the interest receivable on a loan exceeds the accounting period for uncollected interest receivable or the loan principal has not been recovered after the expiration (including extension) from the date of interest settlement, the interest receivable shall be calculated according to the Business tax must be paid on interest actually received.

② For the receivable and uncollected interest (including interest on self-operated loans and entrusted loans, the same below) that has already paid business tax and occurred after January 1, 2001, if it exceeds the amount receivable and uncollected, If the interest is not recovered after the accounting period or the loan principal is not recovered after maturity (including extension), it can be deducted from future turnover.

③For financial enterprises that have paid business tax before December 31, 2000, the receivable and uncollected interest should, in principle, be deducted from the turnover before December 31, 2005. However, the uncollected interest receivable that has been handed over to China Huarong, Great Wall, Oriental and Cinda Asset Management Co., Ltd. shall not be deducted from the turnover.

④ Financial enterprises refer to banks (including state-owned, collective, joint-stock, joint venture, foreign-funded banks and other ownership forms of banks) urban credit cooperatives and rural credit cooperatives, trust investment companies and financial companies.

(3) Tax rate and calculation formula:

The business tax rate for local tax collection in this industry is 5%.

Calculation formula: tax payable = turnover × applicable tax rate

2. Urban maintenance and construction tax (omitted)

3. Education surcharge (omitted)

IV. Corporate Income Tax (omitted)

V. Stamp Duty

Stamp duty is a tax imposed on people who write and receive the "People's Republic of China" in economic activities and economic exchanges. *A voucher tax that is both behavioral in nature and levied on various vouchers listed in the Provisional Regulations on Stamp Duties of the People's Republic of China. There are two types of taxation: ad valorem taxation and specific taxation.

The tax payable = the tax amount × tax rate,

or the tax payable = the number of vouchers × the unit tax amount.

1. The loan contract signed by the finance and other departments in exchange for a loan shall not be discounted for the time being if it is signed directly with the user unit; if a financial unit is entrusted with the loan, the loan contract signed by the financial unit and the user unit shall be based on Prescribed decals.

2. The "interbank lending" mentioned in the "Stamp Duty Item and Rate Table" refers to the mutual financing of short-term funds between banks and non-bank financial institutions in accordance with the provisions of the national credit system. Interbank lending contracts are not certificates for enumerated taxation and are not stamped.

3. The basis for determining the inter-bank lending contract shall be based on the Notice of the People's Bank of China Yinfa [1990] No. 62 on Issuing the "Trial Measures for the Administration of Inter-bank Lending". Any inter-bank lending contract signed in accordance with the prescribed inter-bank lending period and interest rate shall not be stamped; if it does not meet the regulations, it shall be stamped according to the loan contract.

4. The account books set up by institutions at all levels of the People's Bank of China to manage treasury business and entrust institutions at all levels of specialized banks to act as agents for treasury business are not account books for accounting of the bank's own business operations and do not have stamps.

VI. Personal Income Tax

(1) Relevant Provisions on Personal Income Tax for Salespersons in the Insurance Industry

According to the "Beijing Local Taxation Bureau forwarded" the State Administration of Taxation on Insurance "Notice on Issues Concerning the Collection of Personal Income Tax on the Income of Salespersons" (Jingdi Shuige [2002] No. 406) stipulates that after deducting the actual paid business tax and surcharges from the monthly commission income of insurance salespersons (non-employees) in our city, they can 25% of marketing expenses will be deducted from the balance, and personal income tax will be calculated and paid according to the expense deduction standards and applicable tax rates stipulated in the Personal Income Tax Law.

(2) Taxation regulations for individuals’ dividend income from securities investment funds

In accordance with the "Notice of the Ministry of Finance and the State Administration of Taxation on Taxation Issues of Securities Investment Funds" (Finance and Taxation Zi [1998] No. 55):

1. The dividend income received by an individual from an investment fund management company is a taxable item of interest, dividends, and bonus income, and should be fully levied on the individual at a proportional tax rate of 20%. Income Tax. The investment fund management company is the withholding and payment obligor and shall withhold and pay personal income tax when distributing dividends to individuals.

2. Dividends, dividend income and interest income from corporate bonds obtained by investors from fund distribution shall be withheld by listed companies and bond-issuing enterprises when they distribute dividends, bonuses and interest to the fund. Pay 20% personal income tax. When the fund distributes dividends, dividends, and interest to individual investors, it will no longer withhold and pay personal income tax.

3. Personal income tax shall be levied on individual investors in accordance with the tax law on the corporate bond price difference income obtained by individual investors from fund distribution, and the tax shall be withheld and paid by the fund in accordance with the law at the time of distribution.

4. Personal income tax shall be levied on the income earned by fund managers and fund custodians from fund management activities in accordance with the provisions of the tax law.

(3) Provisions on the exemption of personal income tax on interest income from personal account deposits of housing provident funds, medical insurance funds, basic pension insurance funds, and unemployment insurance funds

According to the State Council's "On Interest on Savings Deposits" Article 5 of the "Implementation Measures for the Collection of Personal Income Tax on Income" stipulates that "Interest income from education savings deposits obtained by individuals and interest income from other special savings deposits or special savings fund deposits determined by the financial department of the State Council are exempt from personal income tax." In order to To ensure and support the smooth implementation of the reform of the social security system and housing system, it is now clarified that the following special funds paid in accordance with the proportions stipulated by the national or provincial local governments or the interest income obtained from depositing funds into bank personal accounts are exempt from personal income tax, housing Provident fund, medical insurance, basic pension insurance, unemployment insurance fund.

Extended reading: How to buy insurance, which one is better, and step-by-step instructions to avoid these "pitfalls" of insurance