General Outline for Inspection of Key Audit Objects of the State Administration of Taxation in 2016

1. Value-Added Tax

(1) Input Tax

1. Use Whether the special value-added tax invoices for deducting input tax are authentic and legal: whether there are invoices in which the invoicing unit is inconsistent with the receiving unit or the goods recorded on the face are inconsistent with the actual goods in the warehouse are used for deduction.

2. Whether the transportation invoices used to deduct input tax are true and legal: whether there are goods used for non-VAT taxable items, VAT-exempt items, collective welfare and personal consumption, and abnormal losses (labor services), abnormal loss of products in progress, and finished goods consumed in the purchase of goods (services) deducted from the input; whether there is any freight unrelated to the purchase and sale of goods declared to deduct the input tax; whether there is Use international freight forwarding agency invoices and international cargo transportation invoices to deduct input; whether there are transportation invoices that are inconsistent with the invoicing party and the carrier to deduct input; whether there are transportation invoices with incomplete items to deduct input tax, etc.

3. Is there any failure to issue unified invoices for the purchase of agricultural products as required to declare input tax deductions? Specifically, it includes: expanding the scope of agricultural products, issuing non-duty-free agricultural products (such as square timber, sleepers, logs, sawn timber, etc.) as tax-free agricultural products (such as logs); falsely issuing unified invoices for the purchase of agricultural products (falsely issuing quantity, unit price, tax deduction payment).

4. Whether the invoices for waste materials used to deduct input tax are true and legal.

5. Whether the special customs import value-added tax payment form used to deduct input tax is true and legal; whether the variety and quantity of imported goods match the actual production.

6. Whether the input tax is transferred out according to regulations when returns are made or sales discounts are obtained.

7. Used for non-VAT taxable items, VAT-exempt items, collective welfare and personal consumption, abnormal loss of goods (services), abnormal loss of products in progress, and finished goods. Whether the input tax on purchased goods (services) is transferred out in accordance with regulations.

8. Is there any situation where rebates are linked to other accounts payable, other receivables and other current accounts or used to offset operating expenses without transferring input tax out?

(2) Output tax

1. Whether the sales revenue is completely and timely recorded: whether there is any barter or debt-offset revenue that has not been recorded; whether there are sales of products Invoices are not issued, and the income obtained is not recorded in accordance with regulations; whether there is a situation where sales revenue is not transferred to the account for a long time; whether water, electricity, steam and other expenses are collected from external units or individuals, and the income is not counted, under-counted or offset; Whether the sales money that should be collected is paid first (such as rebates from the buyer, promotion bonuses, operating expenses, handling fees for entrusted sales of goods, etc.), and then the balance is recorded as income.

2. Is there any deemed sales behavior and failure to accrue output tax as required: using self-produced or entrusted processing goods for non-VAT taxable items, collective welfare or personal consumption, If used in internal canteens, hotels, hospitals, nurseries, schools, clubs, family communities and other departments, the taxable income will not be counted or under-counted; if self-produced, entrusted processing or purchased goods are used for investment, distribution, free donation, Taxable income will not be counted or under-counted if the materials are given away or purchased materials are repurposed for external sales.

3. Is there any situation where red-letter invoices that do not comply with the regulations are issued to offset taxable income: sales returns and sales discounts occur, and whether the red-letter invoices and accounting treatments issued comply with tax law regulations.

4. Whether various extra-price fees (such as handling fees, subsidies, fund-raising fees, return profits, incentive fees, liquidated damages, transportation and handling fees, etc.) collected from the buyer are taxed according to regulations.

5. For taxpayers who have more than two institutions and implement unified accounting, if they transfer goods from one institution to other institutions (not in the same county or city) for sale, whether they should be treated as sales.

6. Whether the output tax for overdue packaging deposits that have not been recovered is calculated as required.

7. Is there any business that is subject to value-added tax and is subject to business tax?

8. Whether the VAT mixed sales behavior is taxed in accordance with the law: Whether the VAT tax law stipulates that the behavior should be regarded as sales tax is taxed in accordance with the regulations; units and individuals engaged in the cargo transportation business are responsible for the sale of goods. Whether the mixed sales behavior of transporting goods for sale is subject to VAT as required.

9. Do taxpayers who are also engaged in non-VAT taxable items separately calculate the sales of goods or taxable services and non-VAT taxable items in accordance with regulations? For taxpayers who do not separately calculate or cannot accurately calculate , whether to pay value-added tax based on the sales volume of goods or taxable services approved by the competent tax authority.

10. Whether the value-added tax is paid when purchasing goods on behalf of others or importing goods on behalf of others that are subject to value-added tax in accordance with the provisions of the Value-Added Tax Law.

11. Whether tax-free goods are accounted for in accordance with the law: whether the goods or taxable services exempted from VAT by VAT taxpayers comply with the relevant provisions of the tax law; whether there is any problem of unauthorized expansion of the scope of tax exemption; concurrently operating tax-free items For general taxpayers of value-added tax, whether their tax exemptions and non-deductible input tax are calculated accurately.

2. Corporate Income Tax

Whether all taxable income is paid in accordance with the provisions of the tax law, and whether all costs and expenses are paid before tax in accordance with the provisions of the pre-tax deduction method for income tax. Specific projects should at least cover the following issues:

(1) Income

1. Whether the assessed value-added of corporate assets should be incorporated into taxable income.

2. Whether the income obtained by the enterprise from the overseas invested enterprise shall be incorporated into the current taxable income tax calculation.

3. If you hold non-tradable shares (restricted shares) of a listed company, whether the income from selling the shares after the ban is lifted will be included in the taxable income.

4. Whether the various incomes obtained by the enterprise are not recognized and taxed according to the accrual basis principle.

5. Whether current accounts, intermediate accounts such as "withholding expenses", etc. are used to delay the realization of taxable income or adjust corporate profits; whether the income collected from authorized production, trademark rights usage fees, etc. are included in taxable income Amount of income.

6. Whether gains from non-monetary assets are included in taxable income.

7. Whether there is deemed sales behavior without tax adjustment.

8. Whether there are various transfer tax exemptions, various subsidies, and government awards received, but they are not included in the taxable income as required.

9. Whether there are monetary and non-monetary assets donated, which are not included in the taxable income.

10. Is there any investment income distributed by the enterprise and no corporate income tax is paid according to the regional tax rate difference?

(2) Costs and expenses

1. Whether there are inflated costs such as false invoices or false labor costs.

2. Whether there are any invoices and vouchers that do not comply with the provisions of tax laws, and costs are listed.

3. Is there any "rebate" behavior that is not included as an expense, such as accepting reimbursement of invoices from distribution units other than the enterprise for monetary rebates and including them in costs, etc.

4. Are there any expenses that are not included and should be borne by other taxpayers.

5. Is there any one-time inclusion of capital expenditures into costs and expenses: items that meet the fixed asset standards are included in costs and expenses in one lump sum without tax adjustment; management system software that meets the intangible asset standards is included in the costs and expenses in one go Operating expenses are recorded as a one-time expense without tax adjustment.

6. Whether the wages and salary expenditures incurred by the enterprise comply with the wage and salary range stipulated in the tax law, whether they comply with the principle of rationality, and whether they are actually paid in the year in which the deduction is declared.

7. Whether the accrued employee welfare fees, trade union funds and employee education funds exceed the tax calculation standards and no tax adjustments have been made.

8. Whether there is any payment of social insurance premiums and housing provident funds for employees that exceeds the standard and exceeds the scope, and no tax adjustment is made. Whether there are social insurance and other expenses that should be borne by infrastructure projects and special projects that have not been capitalized; whether there are problems such as only withdrawing but not paying, overpaying and underpaying, and inflated costs and expenses.

9. Whether there is any unauthorized change in cost valuation method and profit adjustment.

10. Are there any problems such as failure to accrue depreciation according to the years stipulated in the tax law; arbitrarily changing the net residual value and depreciation life of fixed assets; not accruing depreciation according to the depreciation method stipulated in the tax law, etc.

11. Is there any problem such as excessive business entertainment expenses, advertising expenses and business promotion expenses without tax adjustment?

12. Are there any issues such as unauthorized expansion of the scope of research and development expenses, illegal super deductions, etc.

13. Whether there are deductions for various asset impairment reserves, risk reserves and other expenditures that do not comply with the provisions of the State Council's finance and taxation departments.

14. Whether there is any interest expense on borrowing from non-financial institutions that exceeds the amount calculated based on the loan interest rate of the financial institution for the same period, and no tax adjustment has been made; whether there is interest expense that should be capitalized; whether the interest expenses of related parties meet the requirements Regulation.

15. Whether there are partial or complete recoveries of assets that have been treated as losses, no tax adjustment has been made; whether there are natural disasters or accidental accidents where the losses have been compensated, no tax adjustments have been made.

16. Whether the deduction of handling fees and commission expenses complies with the regulations: whether rebates, commissions, rebates, entry fees, etc. are included in handling fees and commission expenses; whether the collection object is an intermediary agency with legal business qualifications and individuals; whether the pre-tax deduction ratio exceeds the provisions of the tax law.

17. Whether there are any charitable relief donations that do not meet the conditions or exceed the standards and no tax adjustments have been made.

18. Whether the administrative service fees paid by the subsidiary to the parent company comply with regulations: whether the service content, charging standards and amount are clarified in the form of a contract (or agreement); whether the parent company provides corresponding services ;Whether the subsidiary actually paid the expenses.

19. Whether the fixed assets are leased in the form of financial lease, it is regarded as an operating lease, and the expenses are multi-shared, and no tax adjustment is made.

20. Whether special funds for environmental protection and ecological restoration are withdrawn in accordance with national regulations; whether tax adjustments are made after the use of special funds is changed.

(3) Related transactions

Whether there is any business dealings with its affiliated enterprises, which does not charge or pay prices and expenses according to the business dealings between independent enterprises, thereby reducing the tax payable Income and corporate income tax payable.

(4) Withholding income tax

When a domestic enterprise distributes dividends to overseas investment shareholders, whether the withholding income tax is withheld and paid in accordance with regulations.

3. Personal income tax

Focus on checking whether personal income tax is withheld in accordance with the law on taxable income paid to individuals in various forms:

(1) For employees Annuities and performance bonuses issued.

(2) Various commercial insurance purchased for employees.

(3) Pension, unemployment and medical insurance paid for employees beyond the standard.

(4) Housing provident funds paid for employees exceeding the standard.

(5) Various personal incomes paid to employees in the form of reimbursement invoices.

(6) Vehicle modification and communication subsidies.

(7) Heating fees and property fees paid for properties owned by employees.

(8) Stock option income. If an employee stock option plan is implemented, whether the profit difference received by employees when exercising the options is subject to personal income tax as salary income.

(9) Whether personal income tax is withheld on personal income distributed in non-monetary forms.

(10) Whether the enterprise withholds personal income tax when purchasing cars for individual shareholders.

(11) Whether personal income tax is withheld and paid on behalf of individuals from other units in accordance with regulations.

(12) Whether all employees and full withholding and payment obligations are fulfilled as required.

4. Real estate tax

(1) Whether the land value is included in the property value to pay property tax.

(2) Whether there are ancillary facilities that are inseparable from the house and are not included in the original value of the property for the purpose of paying property tax.

(3) Whether property tax should be paid for properties that have not been completed and accepted but have been actually used.

(4) Whether the property tax is paid according to regulations if the property is used without rent.

(5) Whether the interest that should be capitalized is included in the original value of the property to pay property tax.

5. Land use tax

If there is a difference between the actual area of ??the land and the land use certificate, whether to pay the land use tax according to the actual area of ??the land.

6. Stamp Duty

(1) Whether the nature of the contract is confused, the tax rate is applied at a lower level or the basis for tax calculation is reduced without authorization, tax is not calculated based on the full amount stated, and taxable vouchers are allocated It is a non-tax voucher and stamp duty has not been paid.

(2) Whether the taxable certificate is not affixed when it is issued or received, but is not affixed until the effective date of the certificate, resulting in delayed payment of stamp duty.

(3) Whether to pay back stamp duty after increasing the paid-in capital and capital reserve.