The differences between tax allowance and tax refund are as follows:

1. Including different ranges

The tax allowance includes 2 items. That is, power construction fund income, Three Gorges Project construction fund income, road maintenance fee income, vehicle purchase surcharge income, railway construction fund income, highway construction fund income, civil aviation infrastructure construction fund income, post and telecommunications surcharge fund income, port construction fee income,

local telephone initial installation fund income, civil aviation airport management and construction fee income, decentralized port to raise Hong Kong income, tobacco commercial franchise profit income, iodized salt fund income, bulk cement special fund income, subsidy income.

the tax exemption and refund amount includes the value-added tax, consumption tax, enterprise income tax, resource tax, land value-added tax, urban maintenance and construction tax, property tax, land use tax, travel tax, education surcharge and other taxes paid by enterprises according to law, mineral resources compensation fee, stamp duty, farmland occupation tax and other taxes, as well as personal income tax collected and remitted by enterprises before being turned over to the state.

2. What are the tax rates?

The tax exemption rate is 17%, which can offset the tax on goods purchased with value-added tickets; The tax rate for small taxpayers is 4% (business) or 6% (industry). However, the input tax cannot be deducted, and the VAT invoice cannot be issued. At the same time, the small-scale goods purchased without tax refund cannot be deducted from the input tax. ?

3. Is the tax rate calculated differently?

the tax calculation formula of tax allowance is:

net operating income = operating income-operating expenses-depreciation of productive fixed assets-production tax +

net rental of rented houses, net rental of other assets and converted net rent of self-owned houses. The net income of property does not include the premium income from the transfer of ownership of assets.

the calculation formula of net transfer income is: net transfer income = transfer income-transfer expenditure

and the calculation formula of tax exemption and refund is: actual growth rate of per capita disposable income = (per capita disposable income in the reporting period/per capita disposable income in the base period)/consumer price index -1%.

4. Differences in bills

VAT general invoices and VAT special invoices are issued for tax exemption, while VAT exemption and tax refund can only be issued for value-added ordinary invoices. Special tickets, that is, ordinary taxpayers, can deduct part of the tax rate for the company. However, small taxpayers cannot enter the deduction.

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