The Income Tax Law of the People's Republic of China on Foreign-funded Enterprises and Foreign Enterprises (hereinafter referred to as the New Tax Law) encourages the development of foreign-invested enterprises on favorable terms. Compared with the original two foreign-related income tax laws, The principle of good, which in the new provisions on the relevant provisions of the tax law has made specific provisions. As the accounting work is based on the relevant laws and regulations of the country for financial accounting and financial supervision, is the implementation of national policy specific practical work, it can not be independent of the provisions of the Government. Therefore, the implementation of the new tax law, but also a direct impact on foreign-related accounting work. In summary, the following aspects:
First, the uniform rate of collection, simple accounting. Article 5 and Article 7 of the new tax law stipulate that fixed-rate tax rates shall be fixed for foreign-related enterprises of different natures. Compared with the former five-level progressive tax rate and the maximum total burden rate of nearly 50%, the level of tax burden of foreign-related enterprises of different natures in China has been leveled out and the policy of fair treatment has been reflected. It is beneficial to increase the cooperative enterprises and foreign capital Business competitiveness of enterprises. At the same time, in the accounting work, also unified the calculation of tax calculation method, directly to the current taxable income multiplied by a fixed proportion of tax rate can be obtained income tax, simplifying the calculation procedures, in particular quarterly prepaid income tax , It is not necessary to convert the quarterly income into the amount of annual income and then determine the applicable tax rate. The income of the current period can be calculated at a fixed percentage rate, which facilitates accounting and tax collection and management.
Second, improve the fixed assets division standards, reduce the fixed assets accounting items. According to the provisions of Article 30 of the New Tax Law, the unit value standard for the division of fixed assets and expenses shall be determined from the original 800 yuan to 2,000 yuan, that is, the use value of which is more than one year and the unit value is more than 2,000 yuan For fixed assets; and not belong to the production and operation of major equipment items, the unit value of less than 2000 yuan or the use of life of not more than two years, can be classified as cost processing. This is conducive to the original should be identified as fixed assets of the small items of the update and transformation, and better play a role in production and management, but also in the accounting work to reduce the fixed asset unit value of 800 yuan or more The following physical assets accounting items; the same time, also adapted to the market price index rose, more reasonable. But also more reasonably reflect the current financial results of enterprises, help enterprises to better strengthen the assessment of economic efficiency.
Third, allow bad debts, reasonable reflect the profit and loss. Article 25, Article 26 and Article 27 of the Detailed Rules for the Implementation of the New Tax Law provide that the allowance for bad debts shall be calculated at the end of the year according to the amount of receivables and bills receivable, Not more than 3 percent of the provision for bad debts, deducted from the taxable income for that year. This has always insisted on the actual occurrence of the project expenditure method, the more reasonable to deal with some of the old can not be resale old method, the enterprise under the current receivables (ie, claims), consider the practice Work needs, appropriate to make bad debts: by: management fees - bad debts, goods: accrued expenses - bad debts. In determining the failure to recover, then redo the original provision for the preparation. This will help to strengthen the liquidity of the compensation treatment is conducive to the flow of liquidity, flexibility to reflect the current financial results of foreign-related enterprises.
Fourth, improve the standards of cross-expenditures, unified accounting method of communication expenses. Article 22 of the Detailed Rules for the Implementation of the New Law on Taxation clearly stipulates that the expenses for communication and entertainment related to production and business operations permitted by an enterprise shall be handled in two ways: (1) The annual net sales volume is less than 15 million yuan Shall not exceed 5 ‰ of the net sales; the annual net sales of more than 15 million yuan part, shall not exceed the part of the net sales of 3 ‰. (2) The total annual business income of less than 5 million yuan shall not exceed 10 ‰ of the total business income; the part of the annual business income of more than 5 million yuan shall not exceed 5 ‰ of the total income of the part. The original two foreign-related income tax law, the provisions of the provisions of the new tax law less limit, of which Sino-foreign joint ventures are: not more than 3% of the total annual sales income tax or business income of 10 ‰. The cooperative enterprises and sole proprietorship enterprises are divided into two cases: (a) annual net sales of 15 million yuan, shall not exceed 3 ‰ of net sales; annual net sales of more than one (2) The annual total business income of less than 5 million yuan shall not exceed 10 ‰ of the total business income, and the total annual business income shall exceed 5% of the total sales revenue. The part of a million dollars shall not exceed 3 ‰ of the total business income of that part. In the current rapid economic development, more competitive economic activities, communication entertainment business development, sales of products is an indispensable management tool. The appropriate increase in the expenditure limit for this component is a positive factor. (From "foreign tax" 1992 the second period)