The BT model refers to a process in which the operation of a project is general contracted by the project company, and is handed over to the owner after passing the financing and construction acceptance. The owner pays the investor the total investment of the project plus a reasonable return.
At present, the use of BT mode to raise construction funds has become a new mode of project financing.
So, how should taxes be handled under this model?
The company contracts construction projects under the BT model, which essentially advances funds to provide construction and installation services, but the income collected includes financing and other expenses.
For example, of the 11 million yuan in project funds collected by the company, 10 million yuan is business income and should pay business tax at a rate of 3% according to the "construction industry" tax category.
Another 1 million yuan is various expenses such as financing fees or capital occupation fees, which are actually expenses such as interest on deferred payments.
The "Notice of the State Administration of Taxation on Issuing the "Business Tax Answer (Part 1)" (Guo Shui Han [1995] No. 156) stipulates that, regardless of financial institutions or other units, any act of lending funds to others for use shall be regarded as
For loan activities, business tax is paid at a tax rate of 5% according to the tax category of "Finance and Insurance Industry".
However, Article 5 of the Interim Regulations on Business Tax stipulates that a taxpayer’s turnover shall be the full price and extra-price fees collected by the taxpayer for providing taxable services, transferring intangible assets, or selling real estate.
Article 13 of the Implementation Rules of the Interim Business Tax Regulations stipulates that "extra-price fees" include handling fees, subsidies, funds, fund-raising fees, returned profits, incentive fees, liquidated damages, late payment fees, deferred payment interest,
Compensation, collections, advances, penalty interest and other extra-price charges of various natures.
It can be seen that the "deferred payment interest" collected by taxpayers in the process of providing labor services is an extra-price expense of business tax and should be incorporated into the income from labor services provided by taxpayers to calculate and pay business tax.
Therefore, the project price and extra-price expenses collected by taxpayers using the BT model to undertake engineering projects, including financing fees, management fees, deferred payment interests, reasonable returns, etc., should be classified according to the "Construction Industry" tax heading.
Business tax is calculated and paid at a rate of 3%.
The business tax payable is 1,100÷(1+3%)×3%=32.04 (ten thousand yuan).
According to Article 12 of the Interim Regulations on Business Tax, the time when business tax liability occurs is the day when the taxpayer provides taxable services, transfers intangible assets, or sells real estate and receives business income payments or obtains receipts for claiming business income payments.
Article 24 of the Implementing Rules of the Interim Business Tax Regulations stipulates that the day on which the receipt for claiming business income is obtained as mentioned in Article 12 of the Regulations is the day on which the payment date is determined in the written contract; if no written contract is signed or the written contract does not specify the payment date,
, is the day when the taxable act is completed.
Article 25 stipulates that if a taxpayer provides construction or leasing services in the form of advance payment, its tax liability will occur on the day the advance payment is received.
Therefore, the tax liability of business tax taxpayers undertaking projects under the BT model occurs when the installment payment time is stipulated in the BT model contract.
If the payment time is not specified in the contract, the time when the tax liability occurs is the day the taxpayer receives the business income payment or obtains the voucher for claiming the business income payment.