It is strictly prohibited to force or require foreign construction enterprises to set up branches or subsidiaries locally, so as to create a more open and fair market environment for construction enterprises.
Article 62 of the law of the people’s Republic of China on the administration of tax collection, if a taxpayer fails to handle tax declaration and submit tax materials within the specified time limit, Or if the withholding agent fails to submit the tax withholding and remitting or collecting and remitting report forms and relevant materials to the tax authorities within the prescribed time limit, the tax authorities shall order it to make corrections within a time limit and may impose a fine of not more than 2000 yuan; If the circumstances are serious, he may be fined not less than 2000 yuan but not more than 10000 yuan.
The tax payable in advance = (total price and non price expenses – subcontracting payment paid) ÷ (1 + 3%) × 3% question 6: is the value-added tax paid in advance by the construction industry the difference between the general tax calculation and the simple tax calculation? Answer: Yes.
Question 2: many accountants ask, do you need to pay enterprise income tax in advance in different places for construction in different places? Reply: enterprise income tax needs to be paid in advance.
I’m a construction enterprise.
During the advance payment, whether the project is the general tax calculation or the simple tax calculation, the difference can be paid in advance.
Reference: 1.
17 of 2016): Article 12 taxpayers who provide construction services across counties (city, district) shall pay tax in advance to the competent national tax authority in the place where the construction services occur in accordance with these measures, but have not paid tax in advance for more than 6 months from the month in which it should be paid in advance, It shall be handled by the competent national tax authority of the place where the institution is located in accordance with the law of the people’s Republic of China on the administration of tax collection and relevant provisions.
2.
According to the total tax payment [2017] No.
Question 9 what kind of construction projects should handle both the special account for migrant workers’ wages and the management of migrant workers’ real name system? Reply: mainly housing construction projects and municipal projects.
Question 3: I am a small-scale VAT taxpayer.
Question 10 is the differential collection of value-added tax in the construction industry applicable to general taxable projects? Reply: only simple The policy of differential tax payment can be enjoyed only under tax calculation..
If the quarterly project amount is less than 300000 yuan, do I need to advance VAT in other places in the current month? Reply: No.
4 of the State Administration of Taxation in 2019), the total monthly sales of small-scale taxpayers shall not exceed 100000 yuan (if one quarter is a tax period, the Quarterly sales shall not exceed 300000 yuan, the same below) According to the current regulations, small-scale taxpayers who should pay value-added tax in advance do not need to pay tax in advance in the current period if their monthly sales in the place where they pay in advance do not exceed 100000 yuan.
I’ll share with you the 18 tax practice problems I often encounter! Question 1: many accountants ask whether there are risks if the value-added tax is not paid in advance for projects constructed in different places? How to punish? Reply: VAT needs to be paid in advance.
Other individuals span counties (cities, districts) These measures are not applicable to the provision of construction services.
Reference: the notice of the State Administration of Taxation on Article 5 of the announcement of the Interim Measures for the administration of value added tax collection on taxpayers providing construction services across counties (cities and districts) (Announcement No.
17 of the State Administration of Taxation in 2016): the provision of construction services across counties (cities and districts) as mentioned in these Measures refers to the counties (cities and districts) where units and individual industrial and commercial households (hereinafter referred to as taxpayers) are located outside their offices Provision of construction services.
11 clearly stipulates that the competent construction administrative departments at all levels shall not require foreign construction enterprises to set up branches, subsidiaries and production bases locally as the preconditions for bidding.
99 stipulates that no region or unit shall illegally restrict or exclude construction enterprises outside the region from participating in project bidding.
The State Administration of Taxation has formulated the Interim Measures for the collection and administration of value-added tax on Cross County (city, district) provision of construction services (Announcement No.
Question 8 must construction enterprises set up branches or subsidiaries for engineering projects in different places? Reply: No.
reference: No According to articles 1 and 6 of the announcement of the State Administration of Taxation on the collection and management of VAT exemption policy for small-scale taxpayers (Announcement No.
If general taxpayers provide construction services across counties (cities and districts) and apply the simple tax calculation method, the tax payable in advance shall be calculated according to the balance of the total price and non price expenses obtained after deducting the subcontracting payment paid.
17 of the State Administration of Taxation in 2016) stipulates that taxpayers providing construction services across counties (cities and districts) shall calculate the tax payable in advance according to the following formula: 1.
When the advance payment is made, the difference can be paid in advance regardless of whether the project is the general tax or the simple tax.
If the construction is not across provinces, the state does not stipulate that the enterprise income tax should be paid in advance) 2.
2.
1.
If a taxpayer provides construction services across counties (cities and districts) and fails to pay taxes in accordance with these measures, the competent national tax authority where the institution is located shall deal with it in accordance with the law of the people’s Republic of China on the administration of tax collection and relevant provisions.
Some provincial housing and urban rural development departments also have similar regulations, such as Jiangxi Jianzhao (2018) Document No.
According to the current regulations, non local construction projects need to pay value-added tax at 2% or 3% in advance and enterprise income tax at 0.2% of the actual income, which has played a role in balancing the financial interests of all localities It is not necessary to force or require foreign construction enterprises to set up branches or subsidiaries locally.
reference: the State Administration of Taxation issued the “taxpayer cross county” Article 2 of the announcement of the Interim Measures for the administration of value added tax collection on the provision of construction services (city and district) (Announcement No.
In practice, some places will require the establishment of branches, value-added tax and enterprises in order to compete for tax sources All industrial income taxes are paid locally.
However, when the general tax items are returned to the location of the organization, the tax shall be calculated in full.
However, when returning to the location of the organization, the general tax items need to be taxed in full.
Question 7: can the value-added tax paid in advance by the simple tax items be deducted from the general tax items? Answer Reply: the tax paid in advance for simple tax items can be deducted from the VAT payable for general tax items.
The tax payable in advance = (total price and non price expenses – subcontracting payment) ÷ (1 + 9%) × 2% 2.
Question 5 is the advance payment of value-added tax in the construction industry by the difference between the general tax and the simple tax? Reply: Yes.
The VAT paid in advance is not deducted in one-to-one correspondence with the VAT payable for construction projects.
Where a taxpayer provides construction services across counties (cities, districts) within the same municipality directly under the central government or city specifically designated in the state plan, the tax bureau of the municipality directly under the central government or city specifically designated in the state plan shall decide whether these Measures shall apply.
General taxpayers across counties (cities and districts) If the general tax calculation method is applicable to the provision of construction services, the tax payable in advance shall be calculated at the advance rate of 2% based on the balance of the total price and non price expenses obtained minus the subcontracting payment.
reference: 1.
Tax prepaid by the cross regional project department: the head office shall prepay the enterprise income tax to the project location on a monthly or quarterly basis at 0.2% of the actual operating income of the project, and the project department shall prepay the enterprise income tax to the local competent tax authority (it is only limited to the project departments established across provinces, autonomous regions, municipalities directly under the central government and cities specifically designated in the state plan.
Advance tax paid by the head office: after deducting the enterprise income tax prepaid by the project department, advance tax shall be paid in the place where the organization is located according to its balance.
Puyang Huiji accounting school was established in 2007, focusing on the training of practical accounting talents for 14 years, with a full curriculum system from zero foundation introduction to accounting experts, and is committed to accounting excellence English practical operation, primary, intermediate, tax agent, management accounting, training of certified public accountants and other services, information-based double qualified intelligent classroom, accompanying teaching service, and the national top ten trainers are leading the industry! Question 4: do natural persons need to pay value-added tax in advance to provide construction services in other places? Reply: No.
