For the fund industry, the relevant provisions of the "Notice on Comprehensively Pushing Forward the Pilot of Changing Business Tax to VAT" (hereinafter referred to as Circular No.36) issued by the Ministry of Finance and State Taxation Administration of The People's Republic of China are as follows: Securities investment fund managers are exempt from VAT when using funds to buy and sell stocks and bonds; For financial services directly collected, the fund management fee, handling fee, investment consultant fee and sales service fee shall be paid in full at the rate of 6%; The fund company's self-investment business shall be paid in accordance with the provisions of the "transfer of financial commodities".
No.36 document does not clearly stipulate how to apply value-added tax to asset management products such as fund products, trust plans and asset management plans, and whether to register and pay taxes independently. According to the CICC report, if asset management products need to be taxed, fund companies should also consider the impact of taxation on the net value of their products.
A financial officer of a fund company told me that publicly offered products may not be the object of tax payment. There are hundreds of fund products of fund companies, and it is difficult for financial personnel of fund companies to determine the rent and travel expenses on a certain fund product, and it is also difficult to divide the amortization tax, so it is not realistic to collect value-added tax.
CICC also believes that fund products themselves are not independent legal persons, and a large part of product investors are individual investors, so it is less likely to levy value-added tax on them; However, after penetrating the principle, if the investors who buy asset management products are not individuals but institutional investors such as commercial banks, how to deal with them needs to be explained in detail.
Therefore, the special account products of the fund may be treated differently. "One-to-one" special account products are products specially entrusted by customers to fund companies for management, and may need to pay value-added tax; For some special account products, the tax part may be reflected in the net value accounting, and the "one-to-one" and "one-to-many" special account products of bank financing outsourcing investment are reflected in the calculation of fund net value.
Many banking institutions avoid tax by investing in money market funds and bond funds. CICC believes that after the implementation of the camp reform, because the fund itself does not pay value-added tax, the dividend of the fund may still be exempted from income tax for banks, so banks can still enjoy tax-free concessions by indirectly investing in various bonds through investment in goods and debt bases, and investment in goods and debt bases is still attractive to banks.