1000 Business Lessons Every Businessman Must Know

Chapter 121 What Every Boss Must Know about Tax Law

991. What is tax law?
Tax law is the general term for legal norms formulated by the state to adjust the relationship between the state and taxpayers in terms of rights and obligations in taxation.It is a code of conduct for the state and taxpayers to collect taxes and pay taxes according to law. Its purpose is to protect the national interests and the legitimate rights and interests of taxpayers, maintain the normal taxation order, and ensure the country's fiscal revenue.It has the following characteristics:

1. Mandatory

It mainly means that the state, as a social manager, stipulates the collection of taxes in the form of laws and regulations, and compulsorily collects taxes in accordance with the law.

2. Gratuity

It mainly refers to that after the state collects taxes, the tax will become the fiscal revenue, and will not be returned to the taxpayer, nor will any remuneration be paid.

3. Fixity

It mainly refers to pre-determining the taxable object, taxable amount and taxable method in the form of law before taxation.

992. The perfection and development of my country's tax law system
Since 1994, my country has implemented a new industrial and commercial tax system, re-enacted and promulgated some new substantive tax laws. The main contents of this tax reform include:
(1) The Circulation Tax Law focuses on implementing a comprehensive value-added tax on the production, wholesale, retail and import of commodities, and sets up tax categories such as value-added tax, consumption tax, business tax, and resource tax. The value-added tax divides general taxpayers and small-scale taxpayers , For general taxpayers, the method of tax deduction based on invoices will be implemented, and the tax included in the price will be changed to the tax outside the price.

(2) The adjustment of the Income Tax Law mainly includes merging the original "state-owned enterprise income tax", "collective enterprise income tax" and "private enterprise income tax" into enterprise income tax, and made relatively large adjustments in tax rates and pre-tax deduction items. Adjustment and specification.The original "personal income tax", "personal income adjustment tax", and "urban and rural individual industrial and commercial household income tax" were merged and revised into the new "personal income tax".As the forerunner of this tax reform, in 1991, the "Income Tax for Sino-foreign Joint Ventures" and "Income Tax for Foreign Enterprises" were merged into "Income Tax for Foreign-Invested Enterprises and Foreign Enterprises", which was the first step towards the unification of enterprise income tax.

(3) Improvements to other tax laws include land value-added tax for rationally adjusting land value-added income and safeguarding national rights and interests, retention of fixed asset investment direction adjustment tax, stamp duty, land use tax, cultivated land occupation tax, etc., and urban maintenance and construction Tax, deed tax, etc. shall be revised, and it is also planned to levy securities transaction tax, inheritance tax and gift tax.

993. The basic structure of my country's tax law system

As far as the overall structure of the tax law is concerned, the tax law system includes the constitution plus the tax code, the constitution plus the basic tax law plus separate tax laws, and the constitution directly plus separate tax laws. Under the guidance of the constitution, the current tax law system in my country is directly composed of separate tax laws. Tax law composition.The separate tax laws are parallel, and there is no relationship between the leader and the leader.Among them, the substantive tax law is the basic component of the current tax law system.In the substantive tax law, personal income tax, foreign investment and foreign enterprise income tax are tax laws, and other taxes are tax regulations in the form of regulations or temporary regulations: foreign investment enterprise and foreign enterprise income tax, urban real estate tax, vehicle and vessel license plate tax are only applicable to Applicable to foreign-invested enterprises and foreign enterprises, urban land use tax, real estate tax, vehicle and vessel use tax, fixed asset investment direction adjustment tax, urban maintenance and construction tax, banquet tax, and cultivated land occupation tax are not applicable to foreign investment and foreign enterprises.

The main part of my country's procedural tax law system is the "Tax Collection and Management Law"; the tax penalty law of our country is the "Legal Liability" chapter of the "Tax Collection and Management Law". The criminal law set by "crime"; my country's tax dispute litigation law consists of the "Law of the People's Republic of China on Administrative Punishment", the "Regulations on Administrative Reconsideration" promulgated by the State Council, and the "Rules for Tax Administrative Reconsideration (Provisional)" formulated by the State Administration of Taxation.

994. How many types of taxes are there in my country's current tax law system?
my country's current tax legal system is based on the original tax system and gradually perfected after the reform of the industrial and commercial tax system in 1994.There are currently 22 tax types (agricultural tax has been cancelled), which can be roughly divided into seven categories according to their nature and function:
(1) Turnover tax category.Includes value added tax, excise tax and sales tax.It mainly plays a regulatory role in production, circulation or service industries.

(2) Resource tax category.Including resource tax, urban land use tax.It mainly plays a regulating role in the differential income formed due to differences in the development and utilization of natural resources.

(3) Income tax category.Including corporate income tax, foreign investment enterprise and foreign enterprise income tax, personal income tax.Mainly after the formation of national income, it plays a regulatory role in the profit of operators and the net income of individuals.

(4) Specific purpose tax category.Including fixed asset investment direction adjustment tax, banquet tax, urban maintenance and construction tax, land value-added tax, cultivated land occupation tax, mainly to achieve specific purposes and play a regulating role on specific objects and specific behaviors.

(5) Property and behavior taxes.Including property tax, urban real estate tax, vehicle and vessel use tax, vehicle and vessel use license tax, stamp duty, slaughter tax, and deed tax, which mainly play a regulatory role in certain properties and behaviors.

(6) Tariffs.It is mainly levied on goods and articles entering and leaving my country's borders.

Customs are responsible for the collection and management of customs duties among the above-mentioned taxes, and the tax authorities are responsible for the collection and management of other taxes.Farmland occupation tax and deed tax were collected and managed by financial authorities before 1996, and were collected and managed by tax authorities after 1996.

995. The main content of my country's tax law

The content of my country's tax laws and regulations usually consists of elements such as taxpayers, tax collection objects, tax payment links, tax payment deadlines, tax items, tax rates, tax reductions and exemptions, and illegal sanctions.Most of the separate tax laws, regulations or rules contain the above basic contents.

(1) Taxpayers, also known as taxpayers or taxpayers.Refers to the unit or individual that bears the tax obligation as stipulated in the tax law.For example, in my country's customs duties, the taxpayer is the consignor and consignor of the imported and exported goods and the owner of the imported and exported goods.

(2) The object of taxation, also called the object of taxation, refers to the subject matter or specific behavior that should be taxed according to the tax law.The object of taxation stipulated in the tax law is to specifically specify what is taxed. The tax object specified in the tax law can be divided into four types according to the nature of turnover, income, property value, and specific behavior.

(3) The link of tax payment refers to the link that should be paid according to the tax law according to the characteristics of the tax category and the tax object, which is beneficial to the control of tax sources.For example, the link of product sales and leaving the factory is the tax link of industrial products stipulated in my country's industrial and commercial unified tax.

(4) Tax payment deadline refers to the deadline for taxpayers to pay taxes as stipulated by the tax law.

(5) Tax items refer to the specific tax items stipulated by the tax law for each tax category.The tax item is the concretization of the object of taxation, which clearly defines the scope of taxation.If it is included in the tax purpose, it will be taxed, otherwise, it cannot be taxed.

(6) Tax rate refers to the ratio between the amount of tax payable and the object of taxation stipulated in the tax law, which is the specific measure for calculating the amount of tax.The level of the tax rate is the basis for measuring the tax burden of a certain type of tax.There are mainly three types of tax rates adopted by my country's current tax law: proportional tax rate, excess progressive tax rate and fixed tax rate.The proportional tax rate is a tax rate that only stipulates a proportional tax rate regardless of the amount of taxable objects.Excessive progressive taxation is to divide the taxable objects into several grades according to the amount, and set a tax rate for each grade, so that a certain number of taxable objects can apply the tax rates of several grades at the same time.The fixed tax rate is a form of directly stipulating a fixed tax rate for each unit of the taxable object.

(7) Tax reduction and exemption refers to preferential tax measures provided by the tax law to give care and support to taxpayers or taxpayers.There are mainly three forms: exemption amount, tax reduction and tax exemption.The exempt amount is the amount exempted from tax among the taxable objects; the tax reduction is the reduction of part of the taxable tax; the tax exemption is the exemption of all the taxable tax.

(8) Illegal sanctions refer to measures to punish taxpayers for violations of tax laws and regulations stipulated in tax laws and relevant regulations.

996. Procedures for enterprises to handle tax registration and apply for tax payment
Procedures for tax registration of enterprises Taxpayers engaged in production and business operations shall go through tax registration in the following manner.

(1) Within 30 days from the date of obtaining the business license, apply to the tax authority for tax registration in written form.

(2) Fill in the tax registration form truthfully.The main contents to fill in the tax registration form are: the name of the unit, the legal representative or the name of the owner and the number of its resident ID card, passport or other legal certificates; residence, place of business; economic nature; enterprise form, accounting method; registered capital ( Capital), total investment, bank and account number; scope of production and operation, mode of operation; production period, number of employees, business license number; person in charge of finance, tax staff; other related matters.In addition, if an enterprise establishes a branch office or a place engaged in production and business operations in other places, it shall also register the name, address, legal representative, main business scope, and person in charge of the head office.

(3) Provide relevant certificates and materials.When the taxpayer fills in the tax registration form to the tax authority, it should also provide the following relevant documents and materials according to different situations: business license; bank account certificate; relevant contracts, articles of association, agreement; resident ID card, passport or other legal documents; Other relevant certificates and materials required by the agency.

(4) Get the tax registration certificate.After the taxpayer fills in the tax registration form and provides the certificates and materials, after being reviewed by the tax authority, if it meets the requirements, he must go to the tax authority to obtain a tax registration certificate within 30 days after the tax authority receives all the written tax declaration contents.

997. What are the basic contents of account book and certificate management?

Account book and voucher management has the following basic contents.

Taxpayers engaged in production and business operations must set up account books within 15 days from the date of obtaining the business license in accordance with the relevant provisions of the Tax Collection and Administration Law and the requirements of the financial and taxation authorities of the State Council, and within 15 days of obtaining the tax registration certificate. Report their own financial and accounting systems or financial and accounting treatment methods to the taxation authorities for record; Calculate and pay taxes according to the relevant tax regulations of the financial and taxation authorities; keep account books, accounting vouchers, tax payment vouchers and other relevant materials in accordance with the storage period stipulated by the State Council finance and taxation authorities.Unless otherwise specified, all account books and vouchers shall be kept for 10 years.

Individual industrial and commercial households with a small production and operation scale and no ability to set up accounts can hire certified public accountants or financial personnel approved by the taxation authority to set up accounts and handle accounts on their behalf, or establish a taxation system in accordance with the regulations of the taxation authority with the approval of the taxation authority at or above the county level. Income and expenditure voucher paste book, purchase and sales registration book, etc.

Where computers are used for bookkeeping, the bookkeeping software, programs, instruction manuals and relevant materials shall be submitted to the competent tax authority for recordation before use, so that accounts can be collected correctly and in a timely manner through computers.

998. What are the penalties for tax evasion and tax resistance?
There are some specific regulations on the punishment of tax evasion in our country's law.Basically: if the amount of tax evasion accounts for more than 10% of the tax payable and the amount of tax evasion is more than 1 yuan, or if the tax authority gives a second administrative punishment for tax evasion and then evades taxes, he shall be sentenced to fixed-term imprisonment of not more than 3 years or criminal detention, and shall also be sentenced to evasion. A fine of less than 5 times the amount of tax; if the amount of tax evasion accounts for more than 30% of the tax payable and the amount of tax evasion is more than 10 yuan, the person shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 7 years, and a fine of less than 5 times the amount of tax evasion shall be imposed.The amount and situation of tax evasion by enterprises and public institutions are similar to the previous ones, and they should be fined accordingly, and the managers who are directly responsible and other directly responsible personnel should be sentenced to fixed-term imprisonment of not more than 3 years or criminal detention.

999. Tax incentives for value-added tax

VAT tax incentives include three aspects, namely tax exemption, threshold and export tax rebate regulations.

(1) VAT exemption regulations

Items exempt from VAT include the following:
① Self-produced agricultural products sold by agricultural producers, including their own primary agricultural products sold by units and individuals engaged in planting, breeding, forestry, animal husbandry, and aquaculture production;

② contraceptive drugs and appliances;

③ Antique books, that is, ancient and second-hand books purchased from the society;

④ Imported instruments and equipment directly used in scientific research, scientific experiments and teaching;
⑤Imported materials and equipment assisted by foreign governments and international organizations;
⑥Imported equipment required for processing with supplied materials, assembly with supplied parts and compensation trade;
⑦Direct import of articles for the disabled by organizations of the disabled; ⑧Sales of articles used by themselves, that is, individuals other than self-employed individuals sell articles used by themselves, except yachts, motorcycles, and cars subject to consumption tax.

(2) Provisions on the threshold of value-added tax
In order to take care of taxpayers with low sales income and weak tax payment ability, the threshold for value-added tax is set according to the amount of sales, which is only applicable to individuals.

①The threshold for sales of goods is 600-2000 yuan per month;
②The threshold for sales of taxable services is RMB 200-800 per month:
③The threshold for pay-per-use tax is 50~80 yuan per (day) sales.

The above thresholds shall be determined by the branches directly under the State Administration of Taxation within the specified range and according to the actual situation to determine the specific thresholds applicable to the region, and reported to the State Administration of Taxation for record.

(3) Export tax rebate of value-added tax

Taxpayers who export goods with zero tax rate can apply to the tax authorities for tax refunds for the exported goods on a monthly basis after completing the export formalities with the customs and presenting export declaration forms and other relevant documents.

1000. VAT special invoice management
The special value-added tax invoice is a commercial certificate in the taxpayer's economic activities, and it is also a legal proof of both the tax liability of the seller and the input tax amount of the buyer. It determines the correct calculation and management of value-added tax.

The value-added tax regulations stipulate that special value-added tax invoices are limited to general value-added tax taxpayers for purchase and use, and small-scale value-added tax taxpayers and non-value-added tax taxpayers are not allowed to obtain and use them.

A general VAT taxpayer who sells goods or taxable services shall issue a special VAT invoice to the buyer, and indicate the sales amount and output tax amount on the special invoice.Under any of the following circumstances, ordinary invoices should be issued, and special value-added tax invoices cannot be issued.

(1) Sell goods or taxable services to consumers;

(2) Sales of duty-free goods;
(3) Sales of goods declared for export and sales of taxable services abroad;
(4) Use of goods for non-taxable items;
(5) Use the goods for collective welfare or personal consumption;
(6) Donate the goods to others free of charge;
(7) Provision of non-taxable labor services, transfer of intangible assets or sale of real estate.

In addition, sales of taxable items to small-scale taxpayers do not need to issue special VAT invoices.

(End of this chapter)