Debit: bank deposit
Loan: income from main business
Taxes payable-VAT payable
Borrow: Taxes payable-VAT payable
Loans: Other income tax relief
Announcement of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Supporting Tax Policies Related to Prevention and Control of Pneumonia Infection in novel coronavirus (Ministry of Finance? Article 5 of State Taxation Administration of The People's Republic of China Proclamation (No.8, 2020) stipulates that the income obtained by taxpayers from providing life services shall be exempted from value-added tax. The specific scope of living services shall be implemented in accordance with Notes on Sales Services, Intangible Assets and Real Estate (Caishui [2065438+06] No.36).
In order to support the prevention and control of novel coronavirus, the state has implemented new policies on individual taxes, including:
Medical personnel and epidemic prevention personnel who participate in epidemic prevention and control work can obtain temporary work subsidies and bonuses according to the standards set by the government, and are exempt from personal income tax.
For the general population, drugs, medical supplies and protective articles (excluding cash) distributed by units to individuals to prevent novel coronavirus from contracting pneumonia are not included in wages and salaries, and are exempt from personal income tax.
How to calculate and pay VAT on the income of small-scale taxpayers from March to May in 2020 during the epidemic?
1. According to the Announcement of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Supporting Individual Industrial and Commercial Households to Return to Work (AnnouncementNo.: Ministry of Finance, State Taxation Administration of The People's Republic of China 2020 13), from March 1 day to May 3 1 day, 2020, the taxable sales income of small-scale VAT taxpayers in Hubei Province will be exempted from VAT; Prepaid VAT items with 3% withholding rate shall be applied, and prepayment of VAT shall be suspended. Small-scale taxpayers of value-added tax in other provinces, autonomous regions and municipalities, except Hubei Province, are subject to taxable sales income at a rate of 3%, and the value-added tax is levied at a reduced rate of 1%; For prepaid VAT items subject to 3% withholding rate, prepaid VAT minus 1% withholding rate.
Two. According to Article 2 of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Supporting Individual Industrial and Commercial Households to Return to Work and Other Tax Collection and Management Matters (Announcement No.5, State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), 2020), small-scale VAT taxpayers shall, in accordance with the provisions of the Ministry of Finance? Announcement of State Taxation Administration of The People's Republic of China on Supporting Individual Industrial and Commercial Households to Return to Work (No.13 of 2020, hereinafter referred to as AnnouncementNo. 12 of 20 10). 13 "), if the value-added tax is levied at a reduced rate of 1%, the sales amount shall be calculated according to the following formula:
Sales = sales including tax /( 1+ 1%)
Let's talk about how to write the accounting entries about tax-free income during the epidemic. Although enterprises are tax-free, they still have to make accounts and declare taxes and fees. If the financial personnel are not very clear about the method of declaring taxes and fees during the epidemic, they can also find more relevant contents on this website to learn more about the treatment of tax-free income.