Thirty-two changes

1. Taxable wages. According to Caishui [2006] No. 126, starting from July 1, 2006, the taxable salary will be adjusted from the original 800 yuan (1,200 yuan in Northeast China) to 1,600 yuan, and the deduction standard for labor remuneration income will still be 800 yuan. After the merger of the two laws, taxable wages were cancelled, forming a unified wage accounting method for domestic and foreign investors. Article 38 of the Implementation Regulations of the New Enterprise Income Tax Law stipulates that "the reasonable wages and salaries of employees actually incurred by the enterprise are allowed to be deducted before tax." According to the current tax law, only foreign-invested enterprises, foreign enterprises and some high-tech enterprises can enjoy this policy. This provision expands the scope of full pre-tax deductions for wages. Of course, it mainly cancels the tax deduction for domestic-funded enterprises based on taxable wages. The discriminatory provisions on front-end deductions at the same time avoid double taxation of the same nature of income on employees’ wages and salaries. The implementation date is January 1, 2008.

2. Make up for losses. It turns out that only the quarterly profits of foreign-funded enterprises can make up for previous annual losses. Nowadays, quarterly profits of domestic-funded enterprises can also make up for previous annual losses, provided that the report issued by an intermediary agency or the audit conclusion of a tax audit is relied upon.

3. The first line of the "Corporate Income Tax Annual Tax Return" is "Sales (Business) Income". The old form includes main business income, and the new form includes main business income, other business income, and visual income. Same as sales revenue. When calculating deemed sales revenue, the base is not included in the calculation of business entertainment expenses, advertising expenses and business promotion expenses, and the enterprise suffers a loss. The new table (discussion draft) in 2008 has changed again, Professor Hou said.

4. Changes in the corporate income tax rate. If a company made quarterly profits in the past or a new company made a profit in the middle of the year, it will be converted into a full-year tax rate (18% for less than or equal to 30,000 yuan, and 18% for less than or equal to 100,000 yuan). And it is 27% for more than 30,000 yuan, and 33% for more than 100,000 yuan). Now it is enough to directly multiply the profit by the corresponding tax rate. There is no need to convert it into the annual profit to find the tax rate. Guoshuifa [2006] No. 56. Now after the merger of the two laws, the unified tax rate is 25%, and the care tax rate is 15% and 20% (for low-profit enterprises or high-tech enterprises). The two preferential tax rates stipulated in the implementation details are 15% and 20% respectively. Among them, the enterprises that can apply for the 15% preferential tax rate are limited to high-tech enterprises that need key support from the state; there are two types of enterprises that can apply for the 20% preferential tax rate: one is small and low-profit enterprises that meet the conditions; the other is those that have no establishment in China. A non-resident enterprise that has established an institution or place, or a non-resident enterprise that has established an institution or place but the income obtained has no actual connection with the institution or place where it is established. In the concept described in Article 2, it can be seen that it is an adjustment to the withholding income tax in the old Foreign-invested Enterprise Income Tax Law. In the past, the withholding income tax rate was 10%, but it has been increased in the new law. Effective from January 1, 2008, don't be confused.

Small low-profit enterprises refer to: 1) Manufacturing, with annual taxable income not exceeding 300,000 yuan, number of employees not exceeding 100, and total assets not exceeding 30 million yuan; 2) Non-manufacturing, The annual taxable income does not exceed 300,000 yuan, the number of employees does not exceed 80, and the total assets do not exceed 10 million yuan.

5. The calculation base for advertising expenses, business promotion expenses and business entertainment expenses used to be two, but now it has become one, which is the first line of the "Corporate Income Tax Annual Tax Return" "Sales (Business)" "Income" is the base number. At the same time, the advertising fee for clothing manufacturers (since January 1, 2006) has been increased from 2% to 8%. (Guo Shui Fa [2006] No. 107), the pharmaceutical industry is 25%. (Guo Shui Fa [2005] No. 21) Advertising expenses, excess advertising expenses can be carried forward and deducted indefinitely to subsequent years. Specifically: 1. Taking into account the necessary advertising expenditures of high-tech enterprises to promote new technologies, the advertising expenses of high-tech enterprises can be deducted before tax; 2. The advertising expenses of grain-based liquor production enterprises that do not belong to the national encouraged production projects shall not be included in the tax deduction. 3. The advertising expenses of general enterprises are deducted according to a certain proportion of the current year's sales revenue (including 2%, 8%, and 25%). The excess portion can be carried forward to subsequent years for deduction. Advertising fees and business promotion fees will be unified to 15% after the merger of the two laws. Advertising expenses in excess of the proportion can be carried forward and deducted indefinitely to future years.

6. Education funding has been increased from 1.5% to 2.5%. (Finance and Taxation [2006] No. 88). Educational funds, labor union funds and welfare expenses are all based on taxable wages. Union funds are deducted before tax based on the receipt of payment. If they are not handed over, they cannot be deducted before tax. Educational funds must now be paid by enterprises before they can be disbursed before tax. Otherwise, tax increases will be required for those already accrued. Welfare fees payable are not allowed to be accrued under the new financial general rules, and the 2008 tax law will be consistent with this. The specific handling method is in the answer to question 23 of 35.

7. Investment income. In the old return form, the investment income needs to be restored to pre-tax, and then the tax rate difference is found to make up for the tax. The new return form does not need to be restored to pre-tax form, and can be filled in directly according to the rows in the tax return form. At the same time, if the enterprise has investment losses, the investment losses of the current year can only be made up with the investment income of the current year. If the loss cannot be made up in the current year, it can be made up in subsequent years indefinitely.

8. Technology development fees for new products, new technologies, and new processes. The additional deduction for enterprise technology development expenses no longer requires a 10% increase in expenditure for the current year compared with the previous year. According to regulations, 150% of the pre-tax deduction is allowed. If the deduction is insufficient in the current year, supplementary deductions can be made within 5 consecutive years. For instruments and equipment researched and developed at the same time, if the cost is less than 300,000 yuan, the cost can be paid in one lump sum, and if it is more than 300,000 yuan, accelerated depreciation can be adopted (double declining balance method and sum of years' digits method). Finance and Taxation [2006] No. 88

9. Charitable relief donations, which were originally listed as "non-operating expenses" in the table, are now listed separately, and the base has changed from the original income before tax adjustment to tax adjustment. later income. Since 2008, the base of public welfare relief donations has been changed to the total accounting profit, and the proportion has changed from the past 1.5% (financial and insurance companies), 3% (general), 10% (culture and art), 100% (red, rural education) , old, young) unified to 12%.

10. Regarding the changes in the new financial general principles and the new accounting standards, the biggest change is: the financial management that the new financial general principles focus on, such as financing management, investment management, and capital utilization management. In the past, Surplus reserve - the public welfare fund can accrue 5%, but now only 10% is allowed to be accrued to the statutory surplus reserve. The new accounting standards focus on accounting, which is specific recognition and measurement. For example, the last-in-first-out method is canceled for inventory issuance, and new accounting subjects are introduced. Trading financial assets replace short-term investments, and investments with maturity on the holding date replace long-term investments. Bond investment, long-term equity investment. Intangible assets make it clear that goodwill cannot be managed and accounted for as "intangible assets". The debit accounts of the eight impairment provisions are unified as "asset impairment losses". The accounts are not allowed to be adjusted when the value of long-term assets recovers. Debt restructuring uses cash to pay off debts, and non-operating income - debt restructuring gains replace capital reserves - other capital reserves. Use non-cash assets to pay off debts Non-operating income - Gains from disposal of non-current assets instead of business office income - Net income from disposal of fixed assets.

11. The amount of taxable income checked by the tax bureau was originally the amount of tax checked directly multiplied by 33% for tax repayment. Now the amount of tax checked is incorporated into the taxable income of the current year. If there is a loss, there is no need to pay taxes. If there is a profit, the profit cannot be used to make up for the previous year's losses, but the tax is paid directly. The applicable tax rate is used when making up the tax (18% for less than or equal to 30,000 yuan, 18% for less than or equal to 100,000 yuan and greater than 27% for 30,000 yuan, 33% for more than 100,000 yuan).

12. Property tax. Starting from January 1, 2006, immovable equipment attached to a property, such as fire protection equipment, central air conditioning, drainage equipment, intelligent equipment, etc., must be included in the value of the property and the property tax will be calculated. Underground buildings, civil air defense passages, etc. used for business operations are also subject to property tax. (Guoshuifa [2005] No. 173). Properties with purely underground construction used for business are subject to a property tax of 50%.

13. Stamp duty. Starting from January 1, 2006, the purchased "fixed assets" that do not need to be installed, or those that need to be installed and accounted for in the "construction in progress" account, must pay stamp tax at a tax rate of 0.3‰. Dadishuifa [2005] No. 189. The stamp tax on sales of commercial houses and property rights transfer documents by real estate development enterprises has been reduced from 30,000% to 50,000%. Finance and Taxation [2006] No. 162. Low-value consumables, capital reserves

14. Land value-added tax.

According to Caishui [2006] No. 21, starting from March 2, 2006, residential houses purchased by individuals or units must pay land value-added tax. If the useful life is less than 3 years, the land value-added tax will be levied in full. The land value-added tax will be halved for 3-5 years. Land value-added tax is exempted for more than 5 years. Those that operated in the form of investment or cooperation in the past and assumed risks were temporarily exempted from land value-added tax, and now as long as one of the parties is a real estate development enterprise, land value-added tax will be levied. Guoshuifa [2006] No. 187 on the settlement of land value-added tax. Dadishuihan [2007] Document No. 93.

15. Business tax. Technology development, technology consulting, technology services and technology transfer are exempt from business tax. Among them: technology development and technology transfer business refers to technology development and technology transfer business in the field of natural sciences. At the same time, starting from January 1, 2006, taxable labor services and rental labor services of individuals or individual industrial and commercial households, which do not reach 3,000 yuan, are exempt from business tax (in the past it was 2,000 yuan), as stipulated in Dadi Shuihan [2005] No. 109. In 2007, two more tax exemptions and exemptions were added: First, from January 1, 2006 to December 31, 2008, for university logistics entities operating student apartments and teacher apartments, canteens on campus, and providing services for university teaching Rental and service income derived from providing logistics services, as well as income derived from providing catering services to teachers and students, are exempt from business tax. However, business tax is levied on rents and other service income obtained from providing services to social personnel in accordance with current regulations. Second, individuals who donate real estate to others for free, including inheritance, estate disposal and other free gifts of real estate, are exempt from business tax, but relevant supporting materials must be provided.

16. Value-added tax. If a general taxpayer is deregistered or a general taxpayer during the counseling period is converted to a small-scale taxpayer, the input tax does not need to be transferred out, that is, the input tax on inventory does not need to be transferred out. At the same time, if there is a retained tax credit, there is no need to refund the tax, even if it is not levied, it will not be refunded. Goods sold on consignment without receiving the consignment list or payment for more than 180 days will be deemed as sales and VAT will be levied. Finance and Taxation [2005] No. 165

17. Personal income tax. If an individual purchases a house less than 5 years ago, personal income tax will be levied on the income from property transfer. If divorced or retired personnel re-employ and sign a labor contract or agreement, 1,600 yuan can be deducted and personal income tax is calculated based on the nine-level excess progressive tax on wages and salaries. At the same time, you can also accrue "three fees". New regulations will be implemented in 2008.

18. Guoshuifa [2006] No. 162, regulations on self-reporting of personal income tax: (1) Annual income of more than 120,000 yuan;

( 2) Obtain wages and salary income from two or more places within China;

(3) Obtain income from outside China;

(4) Obtain taxable income, There is no withholding agent;

(5) Other circumstances specified by the State Council.

The recently issued Order No. 66 of the President of the People’s Republic of China and the People’s Republic of China on amending the Personal Income Tax Law will be implemented on June 29, 2007, that is, the 10th Article 2 is revised to read: "The introduction, reduction, and suspension of personal income tax on interest income from savings deposits and its specific measures shall be prescribed by the State Council." It is now 5% of personal interest income.

19. Preferential policies for resettling laid-off workers, Dadi Shuifa [2006] No. 42,

(1) Expand the scope of people who enjoy preferential policies

Enjoy The scope of personnel under the preferential re-employment tax policy is expanded to include those laid off by state-owned enterprises, those who need to be resettled due to closure of state-owned enterprises, and other registered unemployed persons in cities and towns who enjoy the minimum living security and have been unemployed for more than one year. Laid-off workers from collective enterprises (that is, large collective enterprises run by factories).

(2) Increase the standard for fixed deductions and exemptions

The standard for fixed deductions for laid-off and unemployed persons placed by enterprises is determined to be 4,800 yuan per person per year. Processing enterprises among labor and employment service enterprises and small business entities with processing properties in street communities that place laid-off workers can only enjoy a fixed deduction of corporate income tax of 2,000 yuan per person per year. This is now increased to a fixed deduction of 2,000 yuan per person per year. A discount of RMB 4,800 in urban construction tax, education surcharge, local education surcharge and corporate income tax.

In the past, companies that resettled 30% of their laid-off workers could be exempted from business tax, urban construction tax, and corporate income tax with the approval of the tax bureau.

20. Business entertainment expenses: Domestic-funded enterprises, from the original annual 1,500 5‰ for less than 10,000 yuan, 3‰ for more than 15 million yuan. If the original annual net sales of foreign-invested enterprises are less than 15 million yuan, it shall not exceed 5‰ of the net sales. If the annual net sales exceed 15 million yuan, it shall not exceed 3‰ of the net sales amount. ; If the total annual business income is less than 5 million yuan, it shall not exceed 10‰ of the total business income; if the total annual business income exceeds 5 million yuan, it shall not exceed 5‰ of the total business income. After the merger of the two methods, 50% of the business entertainment expenses related to the business will be expensed before tax.

21. Regarding changes in vehicle and vessel tax, State Administration of Taxation Order No. 46, see page p132 of the meeting materials on July 20 (changes in name and fee standards).

22. Regarding changes in land use tax, the State Council Order [2006] No. 483 and the document Dazhengfa [2007] No. 74 issued by the Dalian Municipal Government will be implemented from January 1, 2007 (foreign investment Changes in taxes, changes in fee standards).

23. "Supplementary Notice on the Use of Special Value-Added Tax Invoices" Guoshuifa [2007] No. 18

24. Guoshuifa [2006] No. 31 targets the advertising fees of real estate development companies , business entertainment expenses, business promotion expenses calculation base, it should be noted that in addition to the main business income, other business income, deemed sales advance revenue, shall not be used as the basis for the calculation of the three fees. The basis for the calculation of the three fees cannot be calculated until it is actually converted into income. . The three expenses incurred before the first sales revenue can be carried forward and deducted in subsequent years, and the carry-forward period shall not exceed 3 tax years. At the same time, Guoshuifa [2003] No. 83 is invalidated.

25. Caishui [2006] No. 1 document stipulates: These regulations will be implemented from January 1, 2006. During the period of enjoying tax reduction or tax exemption preferential policies for corporate income tax, the newly established enterprises shall start from equity. If the cumulative non-monetary assets purchased by investors and their related parties exceed 25% of the registered capital, they will no longer enjoy the relevant corporate income tax reduction and exemption policies. For example: a newly established consulting enterprise with independent accounting shall be exempt from income tax from the first to the second year from the date of opening. Newly established independent accounting enterprises engaged in transportation, postal and telecommunications industries will be exempted from income tax in the first year from the date of opening, and will be levied a half reduction in corporate income tax in the second year. Newly established businesses, tourism, catering, education and cultural undertakings with independent accounting may be exempted or exempted from corporate income tax upon approval by the competent tax authorities from the date of opening.

26. "Notice on Preferential Policies to Promote Employment of Disabled Persons" Caishui [2007] No. 92.

The specific limit of the annual refundable value-added tax or reduced business tax for each disabled person actually placed will be determined by the tax authorities at or above the county level based on the district and county (including county-level cities and banners, the same below) where the unit is located. ) is determined by 6 times the applicable minimum wage standard approved by the people's government at the provincial (including autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, the same below) level, but the maximum shall not exceed 35,000 yuan per person per year.

27. "Notice on Issues Concerning the Treatment of Corporate Income Tax on Policy-based Relocation Income of Enterprises" Caishui [2007] No. 61

For policy-based relocation income obtained by enterprises, the following methods should be followed Five points for corporate income tax treatment:

(1) According to the relocation rules, the relocating enterprise uses the income from the relocation to purchase or build fixed assets and land of the same or similar nature and purpose as before the relocation (hereinafter referred to as "replacement fixed assets"). Assets), as well as technical transformation or employee resettlement, the relocation income of the relocated enterprise is allowed to deduct the costs of replacing fixed assets, technological transformation and employee resettlement, and the balance shall be included in the enterprise's taxable income.

(2) The enterprise does not use the above-mentioned relocation income to replace fixed assets or carry out technological transformation due to reasons such as changing the direction of production and operation, but uses the relocation income to purchase other fixed assets or carry out other technological transformation projects. , the relevant costs can be deducted from the company's policy relocation income, and the balance is included in the company's taxable income.

(3) If the relocation enterprise has no plan or project approval report for the replacement of fixed assets, technological transformation or purchase of other fixed assets, the relocation income should be added to the income from the sale of various types of demolished fixed assets, minus the various types of demolished fixed assets. The balance after the depreciated value of demolished fixed assets and disposal costs is included in the taxable income of the enterprise for the year, and the corporate income tax is calculated and paid.

(4) Fixed assets purchased by relocating enterprises using policy relocation income can be depreciated or sold in accordance with current tax regulations, and deducted before corporate income tax.

(5) Within five years from the second year of planned relocation, the relocation income obtained by the relocating enterprise will not be included in the taxable income of the enterprise for the current year. If the relocation is completed within the five-year period, the relocation of the enterprise will After the relevant costs and expenses are deducted from the income in accordance with the above provisions, the balance shall be incorporated into the taxable income of the relocated enterprise for the year and corporate income tax shall be paid.

28. "Notice on lowering the export tax rebate rate for some commodities" No. 90 of Finance and Taxation [2007], page 147 of the self-examination meeting materials on July 20.

29. "Reply on Tax Issues Concerning Transfer of Land Without Land Use Rights Certificate" Guo Shui Han [2007] No. 645, see page P145 of the meeting materials on July 20.

30. "Notice on Issues Concerning the Deduction of Input Tax on Value-Added Taxes on Imported Goods by Taxpayers" Guo Shui Han [2007] No. 350, see page P130 of the meeting materials on July 20.

31. Changes in expenditures for overhaul of fixed assets. According to the "Measures for Pre-tax Deduction of Enterprise Income Tax" Guoshuifa [2000] No. 84, "the repair expenses incurred amount to more than 20% of the original value of the fixed assets". One of the most substantive manifestations of the new corporate income tax law's provisions on fixed asset overhaul expenditures is the introduction of the term tax calculation basis.

The new corporate income tax clarifies the scope of major repairs of fixed assets from a more substantive perspective than the current tax law.

(1) The expenditure incurred reaches more than 50% of the tax basis of the fixed asset;

(2) The service life of the fixed asset is extended by more than 2 years after repair;

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(3) The performance of the products produced by the fixed assets after the repair has been substantially improved or the market price has significantly increased, and the production cost has been significantly reduced;

(4) Other circumstances indicate that after the repair has occurred, The performance of fixed assets has been substantially improved, which can bring increased economic benefits to the enterprise.

The tax basis refers to the book value of an enterprise's various accounting businesses after accounting treatment in accordance with tax law regulations rather than accounting regulations. As the service life of fixed assets increases, maintenance expenditures usually gradually decrease after considering the cost-benefit ratio. Therefore, it is impossible to remain unchanged at more than 20% of the original value. In conjunction with the special situation of depreciation of fixed assets, repair expenditures It is also a dynamic decreasing process, so the provisions in the new Corporate Income Tax Law are more realistic and reasonable.

32. After the promulgation of new accounting standards, changes in accounting accounts (19 items and 30 account changes)

1) "Cash" is restored to "cash on hand" (referring to cash in a narrow sense) .

2) "Short-term investment" is changed to "trading financial assets" and "available-for-sale financial assets".

3) "Long-term debt investment" is changed to "held-to-maturity investment".

4) "Short-term investment impairment provisions" and "long-term equity investment impairment provisions" are combined into "held-to-maturity investment impairment provisions".

5) "Material Procurement" is restored to "Material Procurement".

6) "Materials in transit" is changed to "Materials in transit".

7) Packaging materials and low-value consumables are unified into the "turnover materials" account.

8) "Deferred tax" is divided into "deferred income tax assets" and "deferred income tax liabilities".

9) "Short-term bonds payable" is changed to "trading financial liabilities".

10) The subjects of “Taxes Payable” and “Other Payables” are canceled and unified into “Taxes Payable”.

11) The subjects of "Salaries Payable", "Welfare Fees Payable", "Trade Union Funds" and "Employee Education Funds" are canceled and unified into "Employee Salaries Payable".

12) "Other business expenses" are changed to "other business costs".

13) "Main business taxes and surcharges" are changed to "Business taxes and surcharges".

14) Cancel the "Operating Expenses" account and restore "Sales Expenses".

15) "Goodwill" is separated from intangible assets into a first-level account.

16) "Income tax" is changed to "income tax expense".

17) Cancel "subsidy receivable" and merge it into "other receivables"

18) Cancel "prepaid expenses" and "accrued expenses".

19) Newly added "investment real estate", "R&D expenditures", "accumulated amortization", | "unguaranteed residual value", "treasury shares", "gains and losses from changes in fair value", "long-term Receivables” and “Unrealized Financing Gains”.