Whether a company's financial management income is taxable is determined by the nature of the financial management products invested:
1. Interest income from government bonds
"About Corporate Income Tax on Corporate Government Bond Investment Business" Announcement on Addressing Issues" (State Administration of Taxation Announcement No. 36 of 2011) stipulates that if an enterprise holds the treasury bonds purchased by direct investment from the issuer until maturity, the interest income of the treasury bonds obtained from the issuer will be fully exempt from corporate income tax.
2. Income from investment banking financial products
1. Capital-guaranteed and interest-guaranteed financial management
For investment in capital-guaranteed products that charge fixed interest, that is, in this type of financial management In this model, the enterprise does not bear investment risks and only collects fixed profits. This model should pay business tax. According to Article 5 of the "Notice of the State Administration of Taxation on Issuing the "Administrative Measures for Business Tax Declaration in the Financial and Insurance Industry" (Guo Shui Fa [2002] No. 9): the act of investing with monetary funds but collecting fixed profits or guaranteed profits also falls under the category of called loan business. According to Article 3 of the "Notice of the State Administration of Taxation on Issuing the Comments on Business Tax Items (Trial Draft)" (Guo Shui Fa [1993] No. 149), loan activities fall within the scope of the financial and insurance industry, and the fixed profits collected shall be in accordance with the "financial Insurance industry" pays business tax. Therefore, the financial management model that guarantees principal and interest should pay business tax.
2. Non-capital protection and capital-guaranteed floating income
These are two forms of financial management models. One is non-capital guaranteed and floating income; the second is capital guaranteed, but the income is not fixed. Do these two financial management models involve business tax? Regarding this financial management model, due to unclear provisions in policy documents, there are great differences in implementation. According to the provisions of Item 8, Paragraph 6 of the "Notice of the State Administration of Taxation on Issuing the Comments on Business Tax Items (Trial Draft)" (Guo Shui Fa [1993] No. 149): investing in intangible assets as shares, participating in the profit distribution of the investor, ***No business tax will be levied on activities that bear investment risks. Can investing in non-capital-guaranteed or capital-guaranteed financial products with floating returns be interpreted as an act of jointly bearing investment risks? It will be regarded as investment income and no business tax will be paid. Regarding this view, further support from policy documents is needed.
Corporate income tax: According to the "Corporate Income Tax Law", this type of income is income from the transfer of property and falls within the scope of corporate income tax. There is only one exception. Dividends, bonuses and other equity investment income between qualified resident enterprises are tax-free income. The dividends, bonuses and other equity investment income referred to here do not include the public issuance and listing of continuously held resident enterprises. The investment income achieved by the stocks is less than 12 months.
3. Income from investment in stocks
Income from investment in stocks also falls within the scope of business tax. According to Article 5 (4) of the "Provisional Regulations of the People's Republic of China on Business Tax": For the trading of financial products such as foreign exchange, securities, futures, etc., the turnover is the balance after the selling price minus the buying price; in addition, according to the "Implementation Rules of the Interim Regulations of the People's Republic of China and the State on Business Tax" (the Ministry of Finance and the National Taxation Article 18 of the General Administration Order No. 52 further clarifies that the business of trading foreign exchange, securities, futures and other financial commodities mentioned in Article 5 (4) of the regulations refers to the foreign exchange, securities, non-goods and other financial products engaged in by taxpayers. Futures and other financial product trading business. According to regulations, stocks are financial commodities and should be levied business tax as "financial and insurance industry" with a tax rate of 5%. The turnover is the balance after the selling price minus the buying price.
IV. Income from investment funds
Income from fund investment is also subject to the provisions of Article 5, Item 4 of the "Interim Regulations on Business Tax". Taxpayers engaged in foreign exchange, securities, futures and other financial services For commodity trading business, the balance after the selling price minus the buying price is the turnover, and the business tax is calculated and paid. Therefore, the price difference income obtained by enterprises from trading funds should pay back business tax as required.
Article 2 (2) of the "Notice of the Ministry of Finance and the State Administration of Taxation on Certain Preferential Policies for Enterprise Income Tax" (Caishui [2008] No. 1) clearly stipulates: For investors from securities investment fund allocations The income obtained is not subject to corporate income tax for the time being.
To sum up, for corporate investment funds, the price difference income obtained from the subscription and redemption of fund units should be incorporated into the taxable income of the enterprise and levied corporate income tax; if it is income obtained from fund distribution , no corporate income tax is levied for the time being.