The Ministry of Finance and State Taxation Administration of The People's Republic of China issued the Notice on Promoting the Pilot Work of Changing Business Tax to VAT (Caishui [2016] No.36). Since 16 and 1 May, the pilot project of changing business tax into value-added tax (hereinafter referred to as "VAT reform") has been launched nationwide, covering all construction, real estate, finance and life service industries. From the payment of business tax to the payment of value-added tax, the 30-member financial leasing forum today continued to launch the sixth interpretation series of the reform of the camp: the tax rate of the financial leasing industry is divided into three grades: 6%, 1 1% and 17%.
There are also differences in tax rates between movable property and immovable property. The value-added tax rate of "tangible movable property leasing services" (including financial leasing and operating leasing) provided by the lessor remains unchanged at 17%, which can be understood as the traditional category of financial leasing industry. Add "real estate leasing service" (including financial leasing and operating leasing), and the VAT rate is 1 1. This is the same as the tax rate of the real estate industry. "leaseback", that is, "financing leaseback", is included in the "loan service" under the financial industry, and the value-added tax rate of 6% is applicable according to the loan service. "The principal of the tangible movable property price charged to the lessee cannot be issued with a special VAT invoice, but an ordinary invoice can be issued." In this way, the lessee can't deduct the input tax, and leaseback loses its tax-saving advantage as a channel business, so it is expected to leaseback.
How to determine the value-added tax sales when providing tangible movable property financial leasing services? How much is the tax rate?
According to Article 12 of Caishui [20 13]No. 106, "the tax rate for providing tangible movable property leasing services is 17%".
According to the Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China of the Ministry of Finance on Incorporating Railway Transportation and Postal Services into the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [20 13] 106), Annex 2, Provisions on Relevant Matters Concerning the Pilot Project of Changing Business Tax to Value-added Tax, it is clear that "the pilot taxpayers who engage in financial leasing business with the approval of the People's Bank of China, the China Banking Regulatory Commission or the Ministry of Commerce,
To provide financial leasing services for tangible movable property other than financial sale and leaseback, the balance after deducting paid loan interest (including foreign exchange loan and RMB loan interest), bond issuance interest, insurance premium, installation fee and vehicle purchase tax from the total price and out-of-price fees charged is sales. "。
The above describes how to determine the tax rate of financial leasing. The key lies in the distinction between movable property and immovable property, and the tax rate is also different. Bian Xiao would like to remind our accounting friends that it is very important to make accounts and pay taxes. This means that accounting personnel in enterprises must pay attention to it. The above is all the contents compiled by Bian Xiao. Thank you very much for reading!