Taxpayers Should Pay Attention To Sales Tax Adjustment.

Chengdu lucky company donated 30 computers produced to Ganzi in December 2015 to a new primary school in Xindu bridge, Kangding County, Ganzi. The unit production cost of the computer is 1400 yuan, and the selling price is 4200 yuan in the same period.

When asked about the tax adjustment of the business income tax of Chengdu lucky company in 2015, the lucky company of Chengdu will give the computer of its own production to others for free. According to the current tax law, value added tax and enterprise income tax should be treated separately as sales.

The specific analysis is as follows:

I. tax treatment of value added tax

The fourth rules and eighth regulations of the People's Republic of China Provisional Regulations on value added tax (Ministry of Finance and State Administration of Taxation Decree No. fiftieth of 2008) give free gifts to other units or individuals that are produced, commissioned, processed or purchased, and shall be paid according to the sales value.

Therefore, in December 2015, Chengdu lucky company donated 30 computers produced by itself to a primary school in Xindu bridge, Kangding County, Ganzi. The value added tax should be treated as sales, and the value added tax is declared to be 18307.69 (=4200/ (1+17%) *17%*30).

Two. Tax treatment of enterprise income tax

Article twenty-fifth of the regulations on the implementation of the enterprise income tax law of the People's Republic of China (No. 512nd of the State Council of the People's Republic of China) stipulates that the exchange of non monetary assets and the use of goods, property and labor for donation, debt repayment, sponsorship, fund-raising, advertising, samples, staff welfare or profit distribution shall be regarded as selling goods, pferring property or providing labor services, but the State Council's finances,

Unless otherwise stipulated by the competent authorities.

The Circular of the State Administration of Taxation on the handling of assets income tax by enterprises (tax Letter No. [2008]828) contains second articles and fifth stipulations. The enterprise pfers assets to others for donation, because the ownership of the assets has changed and not belong to the Internal Disposal assets, so it should be regarded as sales income determined according to the regulations.

Therefore, in December 2015, Chengdu lucky company donated 30 computers produced by itself to a primary school in Xindu bridge, Kangding County, Ganzi. The enterprise income tax should be treated as sales, and the enterprise income tax will be carried out in 2015.

When reporting, the amount of taxable income shall be increased by 107692.31 (=4200*30-18307.69) yuan, depending on the sales revenue.

In practice, there are two views on the adjustment of enterprise income tax as sales.

Viewpoint 1: Chengdu lucky company donated 30 computers produced in December 2015 to a primary school of Xindu bridge in Kangding County, Ganzi. It should be treated as sales tax. If the enterprise income tax is declared in 2015, it should increase the taxable income by 107692.31 (=4200*30-18307.69) yuan in accordance with sales revenue, and declare and pay enterprise income tax according to the regulations.

Viewpoint two: in December 2015, Chengdu lucky company donated 30 computers produced by itself to a primary school of Xindu bridge in Kangding County, Ganzi. It should be treated as a sales tax. If the enterprise income tax returns were made in 2015, the amount of taxable income should be increased by 107692.31 yuan in proportion to the sales revenue. At the same time, the reduction of sales income should be 42000 (=1400.00*30).

In favor of the second point of view,

When the enterprise income tax is processed, the increase is regarded as the same as the sales revenue. At the same time, it is necessary to reduce the equivalent cost. In other words, it should be synchronized with the sales revenue and the selling cost.

Therefore, the small partners who are warm and prompt to declare tax: when the enterprise income tax is calculated, the increase will be regarded as the sales revenue, and don't forget to reduce the cost.

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