The provisions for allowable deductions in business tax are as follows:

1. Transportation industry (changed to value-added tax)

Article 5, Paragraph 1 of the Regulations, stipulates that, If a transportation enterprise transports passengers or goods out of the territory of the People's Republic of China and uses other transportation enterprises to transport passengers or goods overseas, the balance of the total freight minus the freight paid to the carrier shall be the turnover.

The "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Business Tax" (Caishui [2003] No. 16) stipulates that the use of transportation enterprise invoices with the approval of local tax authorities will be levied according to the tax category of "Transportation Industry" If a business tax unit allocates the transportation business it undertakes to other transportation companies and collects unified prices from them, the balance of all income it obtains minus the freight paid to other transportation companies shall be the turnover.

2. Tourism Service Industry

Paragraph 2 of Article 5 of the Regulations stipulates that if a tourism enterprise organizes a tour group to travel outside the People's Republic of China, it shall be replaced by other tourism enterprises abroad. If a group is accepted, the balance of the total travel fee minus the travel fee paid to the group accepting company shall be the turnover.

The "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Business Tax" Caishui [2003] No. 16 clarifies: If a tourism enterprise organizes a tour group to travel within China, the total tourism fee collected minus the substitute The balance after tourists pay room fees, meals, transportation, tickets to other units or travel fees paid to other group tour companies is the turnover.

3. Construction and Installation Industry

Article 5, Paragraph 3 of the Regulations: If the general contractor of the construction industry subcontracts or subcontracts the project to others, the total contract amount of the project shall be The balance after deducting the price paid to the subcontractor or subcontractor is the turnover.

Article 18 of the "Implementation Rules of the Interim Regulations of the People's Republic of China on Business Tax" When taxpayers engage in construction, repair, and decoration engineering operations, regardless of how they settle accounts with the other party, their turnover should include the expenses used for the project. The price of raw materials and other supplies and power is included.

When a taxpayer is engaged in installation engineering operations, and the value of the installed equipment is used as the output value of the installation project, its turnover should include the price of the equipment.

The "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Business Tax" (Caishui [2003] No. 16) stipulates that the cables, optical cables and cables used in communication line projects and transmission pipeline projects constitute the main body of pipeline projects Anti-corrosion pipe sections, pipe fittings (elbows, tees, cold bends, insulated joints), pipe pigs, receiving and transmitting balls, pumps, heating furnaces, metal containers and other items are equipment, and their value is not included in the project plan. tax turnover.

The taxable turnover of other construction and installation projects should not include the value of equipment. The specific list of equipment can be enumerated by provincial-level local tax authorities based on their respective actual conditions.

The issue of equipment price is an issue that the construction unit must pay attention to, otherwise it may cause unnecessary overpayment of taxes.

The tax policy for determining the turnover of the construction industry later changed significantly, giving taxpayers more room for planning when calculating taxes to be paid. Not only does it include the above-mentioned equipment price issues, but the county also has the "Notice of the State Administration of Taxation on the Collection of Turnover Tax on Taxpayers Selling Self-Produced Goods and Providing Value-Added Services and Providing Construction Industry Services at the same Time" (Guo Shui Fa [2002] No. 117) listed from Products refer to:

(1) Metal structural parts: including prefabricated houses, steel structure houses, steel structure products, metal grids and other products;

(2) Aluminum alloys Doors and windows;

(3) Glass curtain walls;

(4) Machinery and equipment, electronic communication equipment;

(5) Other self-produced products specified by the State Administration of Taxation goods.

"Notice of the State Administration of Taxation on the Collection of Turnover Tax on Taxpayers Selling Self-Produced Building Waterproofing Materials and Providing Construction Industry Labor Services" (Guo Shui Fa [2006] No. 80): Taxpayers selling self-produced building waterproofing materials The supply of materials and labor services to the construction industry has also been added. The six materials used in construction involved in the above two documents may not be included in the turnover tax issue if they meet the prescribed conditions.

More thorough and worthy of attention than the above regulations is the "Notice of the Ministry of Finance and the State Administration of Taxation on the Collection of Business Tax on Taxpayers Providing Decoration Services in the Form of Contract Contracting" (Caishui [2006] No. 114): For decoration services provided by taxpayers in the form of contract work, taxable turnover shall be recognized based on the labor fees, management fees, auxiliary material fees and other income actually collected from customers (excluding the price of materials and equipment purchased by customers themselves).

The above-mentioned decoration services provided in the form of outsourced work means that the main raw materials and equipment required for the project are purchased by the customer themselves, and the taxpayer only charges the customer labor fees, management fees, auxiliary material fees, etc. Decorative labor.

IV. Financial Industry

(1) On-lending business

The "Regulations" stipulate that: on-lending business shall be the balance after deducting the loan interest from the loan interest. is the turnover.

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) further clarifies that for financial enterprises operating foreign exchange on-lending business, loans shall be The balance after interest minus borrowing interest is calculated as turnover and levied business tax. On-lending foreign exchange business refers to financial enterprises borrowing foreign exchange funds directly from abroad and then lending them to domestic enterprises.

(2) Interest receivable and uncollected

"Notice of the Ministry of Finance and the State Administration of Taxation on the Collection of Business Tax on Interest Receivable and Uncollected by Financial Enterprises" (Caishui [2002] No. 182 ) The accounting period for interest receivable and uncollected by financial enterprises shall be implemented in accordance with the relevant provisions of the financial accounting system formulated by the Ministry of Finance or the State Administration of Taxation. Starting from January 1, 2002, the accounting period for financial enterprises' receivable and uncollected interest will be adjusted from the original 180 days 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 All interest receivable that occurs must be declared and paid business tax in accordance with regulations; if the interest receivable on a loan exceeds the accounting period for uncollected interest receivable from the date of interest settlement or the loan principal has not been recovered after maturity (including extension), the interest receivable shall be calculated according to the actual situation. Declaration and payment of business tax on interest received.

(3) Trading of financial products in the financial industry

The "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Regarding Business Tax" (Caishui [2003] No. 16) stipulates that financial enterprises ( Including banks and non-bank financial institutions, the same below) engaged in the business of buying and selling stocks and bonds, the balance of the selling price of stocks and bonds minus the buying price shall be the turnover. In accordance with the provisions of the financial accounting system, the purchase price is determined by the purchase price of stocks and bonds minus the balance of dividend income from stocks and bonds obtained during the holding period of stocks and bonds.

Financial enterprises buying and selling financial products (including stocks, bonds, foreign exchange and other financial products, the same below) can, at the end of the same accounting year, calculate the positive and negative differences that occur in different tax periods into the same accounting year. Calculate and pay business tax in an aggregated manner. If the amount of business tax payable in aggregate calculation is less than the amount of business tax paid this year, you can apply to the tax authorities for a tax refund, but the part that is still a negative balance after aggregation within a fiscal year is not allowed to be carried forward. One fiscal year.

(4) Collection services in the financial industry

"Notice of the Ministry of Finance and the State Administration of Taxation on Certain Policy Issues Regarding Business Tax" (Caishui [2003] No. 16): Financial enterprises engaged in Entrusted collection services, such as collecting telephone bills, water, electricity and gas bills, information fees, tuition and miscellaneous fees, paging fees, social security coordination fees, traffic violation fines, taxes, etc., the balance after deducting the price paid to the entrusting party from the total income is the turnover.

5. Insurance Industry

Article 3 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Regarding Business Tax" (Caishui [2003] No. 16) stipulates:

(1) Insurance companies that have collected business tax on receivable and uncollected premiums that have not collected them within the accounting period stipulated in the financial accounting system are allowed to be deducted from the turnover. The offset receivable and uncollected premiums recovered after the accounting period shall be incorporated into the current period's turnover.

(2) If an insurance enterprise carries out non-compensation incentive business, the actual premium collected from the policy holder shall be the turnover.

(3) If an insurance company within the territory of the People's Republic of China and the People's Republic of China reinsures its insurance business with domestic subject matter as the insurance subject matter to an overseas reinsurer, the total premium income shall be reduced by The balance after deducting the ceded premium is the turnover.

Overseas reinsurers shall bear business tax obligations on their reinsurance income, and domestic insurers shall withhold the business tax payable by overseas reinsurers.

VI. Financial leasing business

"Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Business Tax" (Caishui [2003] No. 16): Via the People's Bank of China, Foreign Trade and Economic Cooperation If a unit approved by the Ministry of Finance and the State Economic and Trade Commission to engage in financial leasing business engages in financial leasing business, it shall deduct the actual cost of the leased goods borne by the lessor from the total price and extra-price expenses (including residual value) collected from the lessee. is the turnover.

The above-mentioned actual cost of leasing goods includes the purchase price of the goods, tariffs, value-added tax, consumption tax, transportation and miscellaneous charges, installation fees, insurance premiums and loan interest (including foreign exchange) borne by the lessor. interest on borrowings and RMB borrowings).

7. Units and individuals sell or transfer their purchased real estate or transferred land use rights

"Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Business Tax" (Finance and Taxation [2003] No. 16) Paragraph 20 of Article 3 stipulates that when units and individuals sell or transfer the real estate they purchase or the land use rights they transfer, the total income minus the original purchase or transfer price of the real estate or land use rights shall be The balance is the turnover.

When units and individuals sell or transfer real estate or land use rights obtained from debt repayment, the balance of the total income minus the price of the real estate or land use rights at the time of debt repayment shall be the turnover.

8. Capital Market

"Notice of the Ministry of Finance and the State Administration of Taxation on Business Tax Policies Concerning the Capital Market" (Caishui [2004] No. 203)

1 , allowing the securities transaction supervision fees collected by the Shanghai and Shenzhen stock exchanges to be deducted from their business tax calculation turnover.

2. Allow the futures market supervision fees collected by the Shanghai, Zhengzhou and Dalian Futures Exchanges to be deducted from their business tax calculation turnover.

The following fees collected by securities companies are allowed to be deducted from their business tax calculation turnover.

1. Securities transaction supervision fees collected for the stock exchange;

2. Stock exchange handling fees collected for buying and selling securities on behalf of others;

3. Collect shareholder account opening fees (including A shares and B shares), special transfer stock account opening fees, transfer fees, B share settlement fees, and custody transfer fees for China Securities Depository and Clearing Corporation;

( 4) Allow the handling fees collected by futures brokerage companies for futures exchanges to be deducted from their business tax calculation turnover.

9. Agency Customs Declaration Industry

"Notice on Strengthening the Collection and Management of Business Tax in Agency Customs Declaration Business" (Guo Shui Han [2006] No. 1310)

Agency Customs declaration business refers to the business of accepting the entrustment of the consignor and consignor of import and export goods to handle customs declaration-related procedures on their behalf. Business tax should be levied in accordance with the tax category of "Service Industry-Agency Industry". Taxpayers engaged in agency customs declaration business shall declare and pay business tax as their taxable turnover from the total price and extra-price fees collected from the principal after deducting the following items:

(1) Payment to the Customs Taxes, visa fees, late declaration fees, late payment fees, inspection fees, billing fees, electronic customs declaration platform fees, and warehousing fees;

(2) Three inspection fees, fumigation fees, and disinfection fees paid to the inspection and quarantine unit fees, electronic insurance platform fees;?

(3) Pre-recording fees paid to the pre-recording unit;?

(4) Other fees stipulated by the State Administration of Taxation. ?

Taxpayers engaged in agency customs declaration business should use the invoices or other legal and valid certificates issued to the taxpayer as a deduction voucher for the difference in business tax collection. ?

10. Conditions for discounts and allowances

The "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Business Tax" (Caishui [2003] No. 16) regarding discounts and allowances There are strict regulations on turnover deduction: Paragraph 2 of Article 3 clarifies: When units and individuals provide business tax taxable services, transfer intangible assets, or sell real estate, if the price and discount amount are stated on the same invoice, the amount shall be The price after discount is the turnover; if the discount amount is invoiced separately, it shall not be deducted from the turnover regardless of how it is handled financially.

When units and individuals convert prepaid prices that have already paid business tax into operating income period by period due to changes in financial accounting methods, they are allowed to be deducted from the turnover.

11. Other items that can be taxed according to the difference in the collection of business tax

"Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues of Business Tax" (Caishui [2003] No. 16 ) also stipulates some other contents that can be levied business tax based on the difference:

(1) The labor service company accepts the entrustment of the employing unit and arranges labor for it, and the employing unit shall pay the wages to the labor and the If the social insurance (including pension insurance, medical insurance, unemployment insurance, work-related injury insurance, etc., the same below) and housing provident fund submitted by the labor force are handed over to the labor service company for distribution or processing, the total price collected by the labor service company from the employer shall be reduced. The balance after collecting and transferring wages to the labor force and handling social insurance and housing provident funds for the labor force is the turnover.

(2) If a postal and telecommunications unit cooperates with other units to provide users with postal and telecommunications services and other services and the postal and telecommunications unit collects unified prices, the total income minus the payment shall be paid to the partner The balance after the price is the turnover.

(3) China Mobile Communications Corporation accepts donations for the China Children and Teenagers’ Fund through the mobile phone SMS public welfare special service number “8858”, and the total income minus the price paid to the China Children and Teenagers’ Foundation is The balance is the turnover.

(4) For those engaged in advertising agency business, the balance after deducting the advertising release fees paid to other advertising companies or advertising publishers (including media and carriers) from their total income shall be the turnover.

(5) Units engaged in property management shall use all income related to property management minus the water, electricity, and gas paid on behalf of the owner and the water, electricity, gas, and house rent paid on behalf of the tenant. The balance after the price is the turnover.

12. Issues concerning the management of vouchers for turnover deduction items

In order to ensure the implementation of the policy of collecting business tax on the difference and protect the integrity of national tax revenue, the Ministry of Finance and the State Administration of Taxation have issued the Notice on Business Tax "Notice on Certain Policy Issues" (Caishui [2003] No. 16) has the following strict regulations on the management of vouchers for turnover deduction items: If the payment for turnover deduction items occurs within the country, the payment voucher for the deduction item must be an invoice Or a legal and valid voucher; if the payment is made overseas, the voucher for the payment of the deducted item must be a foreign exchange payment voucher, a receipt document from the foreign company, or a notarized certificate issued by the foreign company.