Financial and taxation treatment of "Four Skills Income" The Ministry of Finance and the State Administration of Taxation have issued a report on tax issues related to the implementation of the "Decision of the Central Committee of the Communist Party of China and the State Council on Strengthening Technological Innovation, Developing High Technology, and Achieving Industrialization" Notice [Caishuizi (1999) No. 273] stipulates that entities and individuals (including foreign-invested enterprises, research and development centers established by foreign-invested enterprises, foreign enterprises and foreign individuals) engage in technology transfer, technology development business and related consultation , Income from technical service business (hereinafter referred to as "four technical income") is exempt from business tax.
The "Interim Regulations of the People's Republic of China and the State on Business Tax" stipulate that the transfer of intangible assets includes income from the transfer of land use rights, patent rights, non-patented technology, trademarks, copyrights and goodwill. The business tax should be paid at a rate of 5; the income obtained from providing technology development, technical consulting and technical services should be paid a business tax at a rate of 5. Therefore, the introduction of the business tax exemption policy for the “four skills income” exempts some income from the transfer of intangible assets and the provision of services from paying business tax, which is very beneficial to units and individuals. Organizations and individuals should pay attention to the following issues when enjoying this preferential policy.
(1) Scope of "Four Technology Income"
"Four Technology Income" refers to units and individuals engaged in technology transfer, technology development business and related technical consulting, technology Income from services. Specifically, technology transfer refers to the act of the transferor transferring the ownership or use rights of patented and non-patented technologies to others for a fee; technology development refers to the developer accepting the entrustment of others to develop new technologies, new products, new processes or The act of conducting research and development of new materials and their systems; technical consulting refers to the act of providing feasibility studies, technology forecasts, special technical investigations, analysis and evaluation reports, etc. for specific technology projects.
Technical consulting and technical service business related to technology transfer and technology development refers to the transferor (or entrusting party), in accordance with the provisions of the technology transfer or development contract, to help the transferee (or entrusting party) master The transferred (or entrusted development) technology provides technical consulting and technical services, and the price of this part of the technical consulting and technical services and the price of the technology transfer (or development) are issued on the same invoice. In other words, income derived from independent technical consulting and technical service industries does not enjoy the benefit of exemption from business tax.
[Case]
[Case Description] On May 26, 2005, Fulisi (China) Chain Management Co., Ltd. and Beijing Maofa Industrial Co., Ltd. reached an agreement. Fulisi (China) ) Chain Operations Co., Ltd. allows Beijing Maofa Industrial Co., Ltd. to operate its chain stores. The agreement stipulates: Fulisi (China) Chain Operations Co., Ltd. *** charges a franchise fee of 600,000 yuan from Beijing Maofa Industrial Co., Ltd., among which, furniture, The charge for counters, etc. is 200,000 yuan, and the cost of these furniture and counters is 180,000 yuan; the charge for providing initial services, such as help with site selection, training personnel, financing, advertising, etc., is 300,000 yuan, and the incurred cost is 200,000 yuan; the charge for providing follow-up services is 100,000 yuan, and the incurred cost is 50,000 yuan Yuan. The agreement provides for payments to be made in a lump sum at the beginning.
[Request an answer] The accounting treatment of Fulisi (China) Chain Operation Co., Ltd.
[Legal basis] "Provisional Regulations of the People's Republic of China on Enterprise Income Tax", "Accounting System of the People's Republic of China for Enterprises", "Accounting Standards of the People's Republic of China for Enterprises" - -income".
[Accounting treatment] Fulisi (China) Link Operation Co., Ltd. should make the following accounting treatment:
① When receiving payment:
Debit: Bank Deposit 600,000
Credit: Advances received 600,000
② When the ownership of furniture, counters, etc. is transferred, revenue of 200,000 yuan is recognized:
Debit: Advances received 200,000
Credit: Main business revenue 200,000
Carry-forward costs:
Debit: Main business cost 180,000
Credit: Inventory Goods 180,000
③When the initial service is provided, revenue of 300,000 yuan is recognized based on the completion level of the service provided:
Debit: Labor cost 200,000
Credit: payable Salaries, bank deposits, etc. 200,000
Debit: advance receipts 300,000
Loan: main business income 300,000
Carryover costs:
Debit: Main business cost 200,000
Credit: Labor cost 200,000
④ When providing follow-up services, revenue of 100,000 yuan is recognized based on the completion level of the service provided:
Debit: 50,000 labor costs
Loan: 50,000 wages payable, etc.
Debit: 100,000 accounts received in advance
Loan: 100,000 main business income
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Carry forward costs:
Debit: main business cost 50,000
Credit: labor cost 50,000
(2) Separately account for taxable items and the turnover of tax-free items
The "Interim Regulations of the People's Republic of China and the State on Business Tax" stipulate that if a taxpayer concurrently engages in tax-free and tax-reduced items, the turnover of tax-free and tax-reduced items shall be separately calculated; If the turnover is not calculated separately, no tax exemption or tax reduction shall be allowed. Therefore, the turnover of technology transfer and development that is exempt from business tax needs to be separately accounted for. It specifically refers to:
① If existing technology or development results are provided using drawings, materials, etc. as carriers, the tax-free turnover shall be the entire price and extra-price fees charged to the other party.
② For those who provide existing technology or development results using samples, prototypes, equipment and other goods as carriers, their tax-free turnover does not include the value of the goods. Value-added tax should be levied on samples, prototypes, equipment and other goods in accordance with relevant regulations. The transferor (or trustee) should reflect the value of the goods and the value of technology transfer and development respectively. If the price of the goods is obviously low, the competent tax authorities will determine the taxable price in accordance with relevant regulations. In other words, if taxpayers intentionally lower the price of goods and raise the price of technology transfer and development, they will be adjusted.
③ The price of microbial strains and new animal and plant varieties provided incidentally when providing biotechnology is included in the turnover that is exempt from business tax. However, value-added tax should be levied on microbial strains sold in bulk.
(3) Documents and procedures required for tax exemption
Documents required for tax exemption: business license, tax registration certificate, approved by the provincial science and technology department where the taxpayer is located A signed written contract for technology transfer and development that agrees to be included in the tax-free scope of the "four technologies".
For foreign enterprises and individuals who need to be exempted from business tax when transferring technology from overseas to China, they must also provide a written contract for technology transfer or technology development, a written application from the taxpayer or its authorized person, and the location of the technology transferee. Proven by the review opinions of the provincial science and technology authorities.
Processing procedures: With the written contract for technology transfer and development, the taxpayer should go to the provincial science and technology department where the taxpayer is located for identification, fill in the tax exemption application form, and go to the local provincial tax department with the above required information. If it is a foreign enterprise or individual, it must be submitted to the State Administration of Taxation for approval after being reviewed by the provincial tax authority.