Value-added tax: According to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Comprehensively Promoting the Pilot Project of VAT Reform, services provided by units or services provided by individual industrial and commercial households to other units or individuals for public welfare or for the public are regarded as sales. Therefore, providing free services as the main body of sales is limited to "units or individual industrial and commercial households", and "other individuals" are not mentioned as natural persons. In other words, in the tax law, individual shareholders provide loans to enterprises free of charge, which does not belong to the taxable scope of value-added tax as sales. Personal income tax: According to the personal income tax law, the tax authorities that reduce the tax payable by individuals or their related parties without justifiable reasons have the right to make tax adjustments in a reasonable way. If it is necessary to pay back the tax, it shall be taxed according to law and interest shall be charged.
1. VAT is a turnover tax levied according to the VAT generated during the circulation of goods including taxable services. From the tax principle, value-added tax is a turnover tax levied on the added value of commodities in many links such as commodity production, circulation and labor services. The collection of value-added tax is borne by consumers. Only when there is value-added can tax be levied. If there is no value-added, there is no tax. Value-added tax is a tax levied on units and individuals who sell goods or provide processing, repair and replacement services and import goods. VAT has become one of the most important taxes in China. Value-added tax revenue accounts for more than 60% of all tax revenue in China, which is the largest tax revenue. VAT is levied by State Taxation Administration of The People's Republic of China, People's Republic of China (PRC). 50% of tax revenue comes from the central government and 50% from local governments. Import value-added tax is collected by the customs, and all the taxes are the central fiscal revenue. 20 19 On March 5th, People's Republic of China (PRC) Li Keqiang, Premier of the State Council of the People's Republic of China said at the second meeting of the 13th National People's Congress in the Great Hall of the People that the value-added tax would be reduced from April 1 and the social security rate would be reduced from April 1.
On March 5th, 20021year, Li Keqiang, Premier of the State Council of the People's Republic of China, People's Republic of China (PRC), proposed in the government work report of 20021the State Council that the threshold of value-added tax for small-scale taxpayers should be raised from 6,543,800 yuan per month to 6,543,800 yuan per month. For small and micro enterprises and individual industrial and commercial households whose annual taxable income is less than 6,543,800 yuan, the income tax will be halved on the basis of the current preferential policies. In practice, it is difficult to accurately calculate the added value or additional value of commodities in the process of production and circulation. Therefore, China has also adopted worldwide tax relief. That is, according to the sales amount of the goods or services sold, the sales tax is calculated at the prescribed tax rate, and then the value-added tax paid when obtaining the goods or services is deducted, that is, the input tax. The difference is the taxable amount of VAT. This calculation method embodies the principle of tax calculation according to the added value coefficient.
3. VAT collection usually includes all links in the process of production, circulation or consumption. It is a neutral tax based on value-added tax or price difference. Theoretically, it includes agricultural planting, forestry and animal husbandry, mining, manufacturing, construction, transportation and commercial services, or procurement, production, manufacturing, wholesale and retail and consumption. Sales tax is a cumulative tax rebate and an indirect tax levied according to the value-added of goods or services. It is called Goods and Services Tax (GST) in Australia, Canada, New Zealand and Singapore, and consumption tax in Japan. Value-added tax was invented by French economist Maurice Laurie in 1954. 45% of the French government's income comes from value-added tax.