Water conservancy construction funds are mainly government funds used for water conservancy construction. When paying, tax payable accounts and bank deposit accounts are set up for accounting. What are the relevant accounting entries?

Provision of accounting entries for the enterprise's payment of water conservancy construction fund: Debit: Taxes and additional loans: Taxes payable - local water conservancy construction fund Actual payment: Debit: Taxes payable - local water conservancy construction fund Loan: Bank deposit of water conservancy construction fund

Calculation method 1*** There are two calculation methods, namely: 1. Water conservancy construction fund is the tax calculation basis for tax-exclusive income.

The accrual and payment of water conservancy construction funds should be based on 0.1% of sales revenue.

The water conservancy construction funds of units and individuals engaged in business and production are different within the administrative areas where the taxation bureaus of various provinces and cities are responsible for collection.

According to the provisions of the "Notice of the Zhejiang Provincial Department of Finance and the Zhejiang Provincial Local Taxation Bureau on Suspending the Collection of Local Water Conservancy Construction Funds from Enterprises, Institutions and Self-Employed Persons" (Zhecai Zong [2016] No. 43), starting from November 1, 2016 (

Starting from the period to which the fee belongs), the collection of local water conservancy construction funds from enterprises, institutions and self-employed individuals will be suspended.

The collection ratios of various provinces and cities are different. For example, Zhejiang Province is 0.01% and Hunan Province is 0.06%.

2. The water conservancy construction fund is calculated and paid based on 1% of the actual payment of consumption tax and value-added tax.

For example, for self-employed individuals and enterprises and institutions that pay consumption tax and value-added tax in the administrative region of Shandong Province, the tax calculation basis is the actual amount of consumption tax and value-added tax paid, and at the same time, they declare to the tax authorities for local water conservancy construction funds.

From June 1 to December 31, 2017, the local water conservancy construction fund will be levied at half rate, from 1% of the actual payment of value-added tax and consumption tax to 0.5%.