The company is an independent legal subject, and whether it is profitable or losing, it needs to pay taxes in accordance with the provisions of the tax law. According to the Enterprise Income Tax Law of People's Republic of China (PRC), enterprise income tax should be calculated and levied according to the different situations of resident enterprises and non-resident enterprises. For resident enterprises, enterprise income tax is calculated and levied according to the actual income of the enterprise; For loss-making enterprises, after verification and deduction of losses, the remaining profits shall be calculated and levied enterprise income tax according to the provisions of the tax law. In addition, for some loss-making companies under special circumstances, part of the tax burden can be reduced by reporting losses. For example, if the company finds that the inventory is scrapped due to expired products or unqualified products, it can report the loss accordingly according to the provisions of the tax law, thus reducing the amount of enterprise income tax to be paid. It should be noted that although the company has to pay taxes even if it loses money, the tax authorities will carry out corresponding tax control according to the specific situation of the company, such as giving appropriate policy support to loss-making enterprises such as tax reduction and exemption.
If the company loses money and can no longer maintain its operations, can it not pay taxes? Even if the company loses money and can no longer maintain its operations, it still needs to declare and pay taxes in accordance with the provisions of the tax law. If the company is really unable to pay taxes, it can apply to the tax authorities for preferential tax policies such as deferred payment and reduction. But in any case, enterprises can't stop production and operation on the grounds of not paying taxes.
Companies that lose money and make profits need to declare and pay taxes in accordance with the provisions of the tax law. However, for losses caused by some special factors, such as inventory scrapping, part of the tax burden can be reduced by reporting the loss. In addition, the tax authorities will also give some preferential tax policies according to the specific situation of the company. However, enterprises cannot stop production and operation on the grounds of not paying taxes.
Legal basis:
People's Republic of China (PRC) Enterprise Income Tax Law Article 26 When calculating taxable income, an enterprise may deduct the following expenses from its total profits:
(1) Production and operation expenses;
(2) financial expenses;
(3) Taxes and surcharges;
(4) donation;
(5) subsidies;
(6) Income reduction and exemption, etc.
When calculating the taxable income, an enterprise may choose to calculate the taxable income according to the provisions of this Law or the approved taxable income.