I. Revenue from commodity sales
Unless otherwise stipulated in the Enterprise Income Tax Law of People's Republic of China (PRC) (hereinafter referred to as the Enterprise Income Tax Law) and the Implementation Regulations of the Enterprise Income Tax Law of People's Republic of China (PRC) (hereinafter referred to as the Implementation Regulations), the recognition of enterprise sales revenue must follow the accrual principle and the principle that substance is more important than form. If an enterprise sells goods that meet the following conditions at the same time, it shall confirm the realization of income:
1. The commodity sales contract has been signed, and the enterprise has transferred the main risks and rewards related to commodity ownership to the buyer;
2. The enterprise neither retains the right to continue management, which is usually associated with ownership, nor effectively controls the sold goods;
3. The amount of income can be measured reliably;
4. The costs incurred or to be incurred by the seller can be recorded reliably.
In line with the income recognition conditions mentioned in the preceding paragraph, if the following commodity sales methods are adopted, the realization time of income shall be confirmed in accordance with the following provisions:
(1) If the goods are sold by collection and acceptance, the income shall be recognized when the collection formalities are completed.
(2) If the goods are pre-sold, the income shall be recognized when the goods are issued.
(3) If the goods to be sold need to be installed and inspected, the income shall be recognized when the buyer accepts the goods and completes the installation and inspection. If the installation procedure is simple, you can confirm the income when you send the goods.
(4) If the commission is paid to sell the goods, the income shall be confirmed when the list of sales agents is received.
Policy basis
Article 1 of the Notice of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Confirmation of Enterprise Income Tax (Guo Shui Fa [2008] No.875)
Two. Income from providing services
At the end of each tax period, if the result of the transaction of providing labor services can be estimated reliably, the income from providing labor services shall be confirmed by the completion progress (completion percentage) method. If the following services meet the conditions for revenue recognition, revenue shall be recognized as required:
1. Installation fee. Revenue should be recognized according to the progress of installation completion. The installation work is subject to the sale of goods, and the installation cost is confirmed when the goods are sold.
2. Media expenses. Revenue should be recognized when relevant advertisements or business activities appear publicly. The advertising production fee shall be confirmed according to the completion progress of advertising production.
3. Software cost. The cost of developing software for specific customers should be confirmed according to the completion progress of development.
4. Service charge. Differentiated service fees included in the selling price of goods are confirmed by stages during the provision of services.
5. Expenses for artistic performances, banquets and other special activities. Revenue is recognized when related activities occur. If the charge involves several activities, the money received in advance should be allocated to each activity reasonably and the income should be recognized separately.
6. Membership fee. When applying for membership or joining a member, only membership is allowed. If all other services or goods are charged separately, the income will be recognized when the membership fee is obtained. After applying to become a member or joining a member, a member can obtain various services or commodities without paying fees during the membership period, or sell commodities or provide services at a price lower than that of a non-member, and the membership fee is confirmed by stages throughout the benefit period.
7. Labor cost. The service fee charged for providing repeated services to customers for a long time shall be confirmed when relevant service activities occur.
Policy basis
Article 2 of the Notice of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Confirmation of Enterprise Income Tax (No.875, 2008).
Three. royalty income
The income from royalties mentioned in Item (7) of Article 6 of the Enterprise Income Tax Law refers to the income obtained by enterprises from providing patents, non-patented technologies, trademarks, copyrights and other franchise rights.
Royalty income shall be recognized according to the date when the concessionaire pays the royalties as agreed in the contract.
Policy basis
Article 20 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
Four. Rental income
The rental income mentioned in Item (6) of Article 6 of the Enterprise Income Tax Law refers to the income obtained by an enterprise from providing the right to use fixed assets, packaging materials or other tangible assets.
Rental income, according to the date when the lessee should pay the rent as agreed in the contract, the realization of income is confirmed.
According to Article 19 of the Implementing Regulations, the rental income obtained by an enterprise from providing the right to use fixed assets, packaging materials or other tangible assets shall be confirmed according to the date when the lessee pays the rent as agreed in the transaction contract or agreement. Among them, if the lease term is stipulated in the transaction contract or agreement, and the rent is paid in advance in one lump sum, according to the principle of matching revenue and expenditure stipulated in Article 9 of the Implementation Regulations, the lessor may include the above-mentioned confirmed income in the relevant annual income by installments during the lease term.
Policy basis
Article 19 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
Article 1 of the Notice of State Taxation Administration of The People's Republic of China on Several Tax Issues Concerning the Implementation of the Enterprise Income Tax Law (Guo [2010] No.79).
Verb (abbreviation of verb) enterprise government financial capital income
If an enterprise sells goods and provides services at market prices, and the financial department of the government pays all or part of the money according to a certain proportion of the quantity and amount of goods and services sold by the enterprise, it shall recognize the income according to the accrual principle.
In addition to the above, various government financial payments made by enterprises, such as financial subsidies, subsidies, compensation, tax rebates, etc. , should be confirmed according to the actual income.
Policy basis
Article 6 of the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Several Policy Issues Concerning the Administration of Enterprise Income Tax Collection (State Taxation Administration of The People's Republic of China AnnouncementNo. 17, 202 1).
Inconvenient verb donation income
Donation income mentioned in Item (8) of Article 6 of the Enterprise Income Tax Law refers to monetary assets and non-monetary assets accepted by enterprises from other enterprises, organizations or individuals free of charge.
Accept the donation income, and confirm the realization of the income according to the date when the donated assets are actually received.
Policy basis
Article 21 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
Seven. Interest income
The term "interest income" as mentioned in Item (5) of Article 6 of the Enterprise Income Tax Law refers to the income that an enterprise provides funds to others for use, but does not constitute equity investment, or that others occupy enterprise funds, including deposit interest, loan interest, bond interest, arrears interest and other income.
Interest income, according to the date of interest payable by the debtor as agreed in the contract, confirms the realization of income.
Policy basis
Article 18 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
Eight. Income from equity transfer
When an enterprise transfers its equity income, it shall confirm the realization of the income when the transfer agreement comes into effect and the formalities for equity change are completed.
The date on which the transfer contract (agreement) takes effect and the formalities for equity change are completed for equity acquisition is the reorganization date. In case of equity acquisition between affiliated enterprises, and the formalities for equity change have not been completed within 12 months after the effective date of the transfer contract (agreement), the effective date of the transfer contract (agreement) shall be the reorganization date.
Policy basis
Article 3 of the Notice of State Taxation Administration of The People's Republic of China on Several Tax Issues Concerning the Implementation of the Enterprise Income Tax Law (Guo [2010] No.79).
Article 3 of the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Several Issues Concerning the Administration of Enterprise Income Tax Collection in Enterprise Restructuring Business (Announcement No.48 of State Taxation Administration of The People's Republic of China 20 15).
Nine. Dividends, bonuses and other stock investment income
Dividends, bonuses and other equity investment income shall be realized according to the date when the investee makes the profit distribution decision, unless otherwise stipulated by the competent financial and tax authorities of the State Council.
When an enterprise obtains dividends, bonuses and other benefits from equity investment, it shall confirm the realization of the benefits on the day when the shareholders' meeting or shareholders' meeting of the invested enterprise makes a decision on profit distribution or share conversion.
Special reminder:
Dividends, bonuses and other equity investment income between qualified resident enterprises belong to tax-free income.
Policy basis
Article 26 of the Enterprise Income Tax Law of People's Republic of China (PRC)
Article 17 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
Article 4 of the Notice of State Taxation Administration of The People's Republic of China on Several Tax Issues Concerning the Implementation of the Enterprise Income Tax Law (Guo [2010] No.79).
X. Income from transfer of national debt
When an enterprise transfers treasury bonds, it shall confirm the realization of the transfer income on the effective date of the treasury bond transfer contract and agreement, or when the treasury bonds are handed over.
If an enterprise invests in the purchase of treasury bonds and pays them at maturity, it shall confirm the realization of the transfer income of treasury bonds on the interest payable date agreed at the time of issuance of treasury bonds.
Policy basis
Article 2 of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Treatment of Enterprise Income Tax on Enterprise Treasury Bond Investment Business (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.36, 20 1 1).
Source: Beijing Taxation
Original title: "Combing the Confirmation Time of Enterprise Income Tax Revenue"