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How to understand the deemed sales of value added tax, enterprise income tax and land value added tax

2021-02-19

Some specific behaviors of enterprises or individuals should be regarded as sales when they declare value-added tax, enterprise income tax and land value-added tax according to the tax law.However, there are slight differences in the treatment of deemed sales of different taxes. Huacai will take you to check the deemed sales treatment of VAT, corporate income tax and land value-added tax.

Regarding deemed sales of VAT:

(1) The following acts of units or individual businesses shall be regarded as selling goods

one Deliver the goods to other units or individuals for sale on a commission basis;

two Sales of consignment goods;

three For taxpayers with two or more institutions and unified accounting, the goods are transferred from one organization to another for sale, except for those with relevant organizations located in the same county (city);

four Using self-produced or commissioned processing goods for non VAT taxable items;

five Using self-produced or commissioned goods for collective welfare or personal consumption;

six Providing self-produced, commissioned processing or purchased goods as investment to other units or individual businesses;

seven Distribute the self-produced, commissioned or purchased goods to shareholders or investors;

eight The goods that are self-produced, commissioned to be processed or purchased shall be presented to other units or individuals free of charge.

2) The following cases shall be deemed as sales of services, intangible assets or real estate

one Units or individual industrial and commercial households provide services free of charge to other units or individuals, except those used for public welfare undertakings or targeting the public;

two Units or individuals transfer intangible assets or real estate to other units or individuals free of charge, except for those used for public welfare undertakings or targeting the public;

three Other circumstances stipulated by the Ministry of Finance and the State Administration of taxation.

Regarding deemed sales of enterprise income tax:

(1) In case of any of the following situations, except for transferring the assets to overseas countries, the assets can be treated as internal disposal assets because the ownership of the assets does not change in form and substance. It is not regarded as sales revenue, and the tax basis of relevant assets is continued to be calculated.

one Using assets to produce, manufacture and process another product;

two Change the shape, structure or performance of assets;

three Change the use of assets (e.g. conversion of self built commercial housing to self use or operation);

four Transfer assets between the head office and its branches;

five A mixture of two or more of the above situations;

six Other uses that do not change the ownership of the assets.

(2) If an enterprise transfers its assets to others, it shall be deemed as sales to determine the revenue in accordance with the provisions if the ownership of the assets has changed and the assets are not disposed of internally.

one For marketing or sales;

two For social intercourse;

three It is used for staff reward or welfare;

four For dividend distribution;

five For external donation;

six Other uses for changing the ownership of assets.

Regarding the deemed sales of land value-added tax:

Taxpayers will develop products for Employee welfare, reward, foreign investment, distribution to shareholders or investors, repayment of debts, exchange for non monetary assets of other units and individuals Wait, happen The transfer of ownership shall be regarded as sale For real estate, its income shall be in accordance with the notice of the State Administration of Taxation on issues related to the liquidation management of land value added tax of real estate development enterprises two thousand and six one hundred and eighty-seven Article 3 shall be implemented.

Policy basis:

one Article 4 of the detailed rules for the implementation of the Provisional Regulations of the people's Republic of China on value added tax.

two Article 14 of the notice of the Ministry of Finance and the State Administration of Taxation on comprehensively launching the pilot project of replacing business tax with value added tax

three Article 1 and Article 2 of the notice of the State Administration of Taxation on the disposal of assets income tax by enterprises.

four Article 2 of the announcement of the State Administration of Taxation on the collection and administration of land value added tax after replacing business tax with value-added tax.


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