The new company is still losing money after one year of operation. Do you need to declare tax to the Inland Revenue Department?

Generally speaking, the time to report the loss of a newly established company should not exceed 2 years. Because the tax bureau roughly takes two years as the boundary, companies that have exceeded two years will take care of you if they still lose money.

But the loss will not affect the future tax payment.

What your company is facing now is: because of the long-term loss reporting, the tax bureau doesn't trust your financial accounts and thinks you cheated. Therefore, the tax bureau will no longer use the tax return you fill out according to the accounting books as the tax basis, but will directly verify your tax, whether you have an account or not, whether your account book is a loss or a profit. This is what you said, "you can't use the cost invoice to offset the tax." No matter how many cost invoices you have on your books, it's useless.

When the tax bureau verifies your enterprise income tax, it will generally verify your taxable income rate (that is, the ratio of tax profit to income). For example, verify that your taxable income rate is 10% (depending on the industry your unit belongs to and the mood of law enforcement officers of the tax bureau).

In this case, income tax is usually calculated according to the amount of your invoice. If the invoiced amount of your company is 654.38 million yuan, the income tax payable = income * taxable income * income tax rate = 10 * 10% * 25% = 0.25 million yuan.

You can turn over a new leaf

But first of all, you have to weigh, is your long-term loss in the early stage real or on the books? If you have a hard life and are not afraid of being investigated by the tax bureau, then you can consider filing an administrative reconsideration. In addition, you should also consider being responsible for offending people, and it is not cost-effective to give you a row in the future.