The core team members have the titles of intermediate accountant and tax agent, and have more than 10 years of financial work experience.
Risk warning: the income from construction services is not recognized in time.
875) clearly stipulates the recognition methods, preconditions and time points for enterprises to recognize labor revenue.
11 of the State Administration of Taxation in 2017) and Article 3 of the notice of the Ministry of Finance and the State Administration of Taxation on the pilot policies of replacing business tax with value-added tax such as construction services (CS [2017] No.
Risk Description: Construction fugitive dust refers to the general name of total suspended particulate matter, inhalable particulate matter, fine particulate matter and other dust that pollutes the atmosphere during the construction of construction projects, municipal projects, demolition projects, road and bridge construction projects and other construction activities in the region, It belongs to general dust in air pollutants and is a taxable pollutant stipulated in the environmental protection tax law of the people’s Republic of China..
Company address: 1008, Hengda center, Changqing Road, Jianghan District, Wuhan City, Hubei Province; company telephone: 400-158-3060; 1 Risk tip: failure to pay tax in advance in accordance with the provisions after obtaining the advance payment risk Description: according to Article 3 of the announcement of the State Administration of Taxation on further clarifying the collection and management issues related to replacing business tax with value-added tax (Announcement No.
Some construction enterprises are not familiar with tax policies and do not distinguish between the income recognition principles of accounting and tax law, which leads to the failure of enterprises to recognize the income in time when obtaining the income from construction services, which is prone to the risk of tax overdue.
They are committed to corporate finance and taxation experts to provide tax related business authentication Customized financial outsourcing, financial and tax consulting, tax planning, headquarters economic investment consulting landing, tax inspection dispute response, equity structure design, enterprise financial internal training and other professional financial and tax services.
Risk Description: according to Article 5 of the measures for the administration of pre tax deduction vouchers of enterprise income tax (Announcement No.
3.
Therefore, enterprises should pay attention to whether upstream suppliers or service providers can issue invoices in time during business transactions, and pay attention to whether the obtained invoices comply with the regulations, whether the face information is consistent with the economic business, whether they are invalid invoices, etc.
Those who provide construction services by means of advance collection shall pay value-added tax in advance when receiving the advance collection; When the tax obligation occurs, the projects in the same prefecture level city do not need to pay tax in advance at the location of the project, but directly report at the location of the institution; For inter city and inter provincial projects, taxes need to be paid in advance in the place where construction services occur; The pre collection rate of items subject to general tax calculation method is 2%, and that of items subject to simple tax calculation method is 3%.
Some taxpayers are not familiar with the policy, and there is a situation that they do not pay the tax in advance at the place where the construction service occurs when the tax obligation of the inter city and inter provincial project occurs, or do not pay the tax in advance when receiving the advance collection.
Suggestions on risk prevention and control: for construction enterprises, whether they can obtain legal and effective pre tax deduction vouchers directly determines the costs and expenses.
17 of the State Administration of Taxation, 2016).
Suggestions on risk prevention and control: Article 2 of the notice of the State Administration of Taxation on Several Issues concerning the recognition of enterprise income tax revenue (GSH [2008] No.
Taxpayers who provide construction services across counties (cities and districts) within the same Prefecture Level Administrative Region shall not be subject to the Interim Measures for the administration of the collection of value-added tax on taxpayers providing construction services across counties (cities and districts) (Announcement No.
28, 2018 of the State Administration of Taxation), if an enterprise incurs expenses, it shall obtain a pre tax deduction voucher as the basis for deducting relevant expenses when calculating the taxable income of enterprise income tax.
Construction enterprises shall judge the completion progress according to the regulations, and timely determine the current construction labor revenue, so as to avoid the tax risk of lagging revenue recognition.
Risk tip: fugitive dust generated during construction fails to pay environmental protection tax as required.
Construction enterprises have a long project cycle and usually employ a large number of contract workers and temporary workers.
4.
Risk Description: Article 23 of the regulations for the implementation of the enterprise income tax law stipulates that an enterprise is entrusted with the processing and manufacturing of large machinery and equipment, ships and aircraft, as well as engaging in construction, installation and assembly engineering business or providing services for more than 12 months, The realization of income is recognized according to the completion progress or workload completed in the tax year.
Risk tip: there is no legal and effective pre tax deduction voucher.
2.
Those who do not need to register tax registration or engage in small sporadic business operations according to law shall pay the expenses of the tax authorities’ invoices or collection receipts and internal certificates as pre tax deduction certificates, and the receipts should include the name of the receivables, personal names and ID number, the items of expenditure, the amount of receivables, and other related information.
58), Taxpayers who obtain advance receipts from construction services shall, when receiving the advance receipts, prepay the value-added tax at the prescribed advance rate based on the balance of the obtained advance receipts after deducting the subcontracting payment.
In some cases, they fail to obtain legal and effective pre tax deduction certificates for some scattered labor costs and subcontracting costs in time, but at the same time, they deduct the corresponding expenses in violation of regulations, which is prone to tax related risks.
At the same time, it should be noted that the prepayment rate of value-added tax is different for projects with different tax methods.
At the same time, Article 6 of the announcement stipulates that the enterprise shall obtain the pre tax deduction certificate before the end of the final settlement period stipulated in the enterprise income tax law of the current year.
Suggestions on risk prevention and control: construction enterprises should accurately grasp the policies and regulations and timely prepay taxes in the place where construction services occur or where the organization is located.
As for our [Zhongqi Lianfu] Zhongqi Lianfu platform, there are: Zhongqi Lianfu (Wuhan) Enterprise Management Co., Ltd., Asia Pacific Pengsheng (Wuhan) tax agent firm, partner of Da V Xiaochen tax in Hubei.
