Financial treatment
1. The debt-paying assets acquired by the enterprise shall be debited to this account according to their fair value, and debited to the accounts such as "loan", "interest receivable", "long-term receivables" and "other receivables" according to the book balance of the creditor's rights receivable, and credited to the accounts such as "provision for bad debts" and "provision for loan losses".
2. The income from custody of debt-paying assets shall be debited to such subjects as "cash", "bank deposit" and "money deposited in the central bank" and credited to "non-operating income". The expenses incurred during the storage period shall be debited to the subjects of "non-operating expenses" and credited to the subjects of "cash", "bank deposit" and "deposit with the central bank".
3. If an enterprise converts the debt-paid assets into self-use after obtaining them, it shall debit "fixed assets" and other subjects according to the book value of the debt-paid assets converted into self-use when the relevant procedures are completed, and credit the subjects.
4. When disposing of debt-paying assets, the subjects such as cash, bank deposits, funds deposited in the central bank, long-term receivables and other receivables should be debited according to the actual disposal income. If depreciation reserves have been accrued, the subjects (depreciation reserves) should be debited, and the subjects "taxes payable" should be credited according to the relevant taxes payable, and the subjects should be credited according to their book balances.
(2) Tax treatment
The analysis of tax treatment involved in the acquisition, holding and disposal of debt-paying assets is as follows:
1. Acquisition process
Paying debts in kind is the behavior of the debtor, guarantor or third party to pay off the creditor's rights of financial enterprises with physical assets or property rights. The taxes involved in this link mainly include:
(1) VAT (VAT reform)
Debt-in-kind refers to the recovery of creditor's rights by recovering physical assets or property rights, including interest income without paying value-added tax. The untaxed interest income contained in the debt-paying assets of financial enterprises shall be recognized when the debt-paying assets are paid, and the value-added tax shall be calculated and paid. Generally, there is a clear division between the amount of debt repayment and interest in the debt repayment agreement or court ruling; If this is not clear, according to the principle of tax law, the fair value of the debt-paid assets should be used as the debt-paid amount. The treatment of value-added tax in debt repayment can be divided into the following three situations:
① The amount of debt-paid assets has been determined, but the amount of debt-paid principal and interest is not clear. According to conventional financial enterprises, the principal is charged first. For the part greater than the principal and less than or equal to the interest, it is necessary to distinguish the taxed interest from the untaxed interest and calculate the VAT payable.
(2) After the amount of debt-paying assets and the amount of debt-paying principal and interest are determined, the debt-paying interest is included in the interest income. Taxed interest income from debt repayment has been paid value-added tax at the time of extraction, so interest receivable is recovered when debt repayment is recovered, and value-added tax is not paid; Interest income from debt repayment without tax shall be included in the interest income from debt recovery and paid value-added tax.
③ The amount of debt-paying assets is uncertain. When the fair value of debt-paying assets is less than or equal to the sum of principal and interest receivable by financial enterprises, it should be handled according to the principle of ①.
(2) Income tax
(1) the amount of debt-paying assets is higher than the amount of creditor's rights.
If the assessed discount amount of non-monetary property recovered by financial and insurance enterprises is higher than the amount of creditor's rights, the part returned to the original debtor shall not be regarded as taxable income; The part that has not been returned to the original debtor shall be included in the taxable income, and the enterprise income tax shall be calculated and paid according to the regulations.
②) The discounted amount of debt-paying assets is lower than the amount of creditor's rights.
The creditor's rights that are less than the difference between the principal and interest of the loan and cannot be recovered after the legally acquired debt-paying assets are accounted for according to the fair market value confirmed by the assessment can be deducted as bad debts before the enterprise income tax.
(3) Stamp duty
According to the provisions of the tax law, if the borrower transfers the mortgaged property to the lender because it is unable to repay the loan, it shall pay the stamp duty of five ten thousandths of the amount on the property right transfer document signed by both parties.
(4) Deed tax
Financial institutions should pay deed tax when they obtain the ownership of land, houses and other debt-paying assets, and the tax rate is 3% ~ 5% of the transaction price.
2. Handling of holding links
Most debt-paying assets cannot be realized immediately after acquisition and will be held for a period of time. At the same time, in order to improve the holding efficiency of debt-paying assets, creditors will lease or use them for their own use before disposing of debt-paying assets. The tax treatment involved in holding debt-paying assets is as follows:
(1) VAT (VAT reform)
Debt repayment assets include real estate, land use rights, machinery and equipment, vehicles, materials and other physical assets. Before the sale, these qualified debt-paying assets can be used for leasing, and VAT is levied according to the leasing industry.
(2) Income tax
Income from holding debt-paying assets shall be included in the taxable income of income tax in accordance with the regulations. Depreciation expenses and amortization expenses of intangible assets extracted from debt-paying assets can be deducted before tax. The Measures for the Treatment of Enterprise Income Tax on Enterprise Debt Restructuring stipulates that the taxable cost of non-cash assets obtained by creditors (enterprises) shall be determined according to the fair value of assets (including taxes related to asset transfer), so as to calculate the depreciation expenses of fixed assets, amortization expenses of intangible assets or sales expenses of carried-over goods that can be deducted before enterprise income tax. Therefore, financial enterprises should not omit the depreciation expenses of fixed assets and amortization expenses of intangible assets when calculating the income tax deduction items.
(3) Property tax
Financial enterprises should pay property tax in accordance with the regulations when they obtain the ownership of the mortgaged real estate through debt repayment. According to the Provisional Regulations of People's Republic of China (PRC) on Real Estate Tax, the tax rate of real estate tax is 12%. If it is not leased, it shall be calculated and paid at the tax rate of 1.2% according to the residual value of the mortgaged property after deducting 10% to 30% from the original value in the accounting books of financial enterprises.
(4) Stamp duty
Rental of debt-paying assets shall be subject to stamp duty in accordance with the lease contract listed in the Provisional Regulations of People's Republic of China (PRC) Municipality on Stamp Duty.
(5) Land use tax
According to the tax law, the land use tax is paid by the unit or individual who owns the land use right, so the land use right owned by financial enterprises should pay the land use tax.
(6) Vehicle and vessel use tax
When a financial enterprise owns and uses vehicles and ships in debt, it shall pay the vehicle and ship use tax in accordance with the Provisional Regulations of People's Republic of China (PRC) on Vehicle and Ship Use Tax.
3. Handling of disposal links
(1) VAT
The disposal of debt-paying assets belongs to sales in tax treatment. When the debt-paying assets are VAT taxable goods, VAT shall be paid in accordance with the Provisional Regulations of People's Republic of China (PRC) on VAT.
When disposing of debt-paying assets, the VAT tax treatment is divided into the following three situations:
① Pay value-added tax according to the transfer income, and transfer the ownership and use right of rights assets such as patent rights and trademark rights used for debt repayment. When transferring the tax items of intangible assets (excluding land use rights), the value-added tax shall be calculated and paid according to the taxable value of the transfer income.
② Value-added tax is calculated and paid according to the income from disposal minus the pricing balance.
When a financial enterprise disposes of the real estate or land use right that has paid off its debts, the turnover shall be the balance of the total income minus the price of the real estate or land use right at the time of paying off its debts. This is a tax policy that needs special attention when disposing of debt-paying assets.
(3) Stamp duty
Financial enterprises shall pay stamp duty when transferring the ownership, copyright, trademark exclusive right, patent right and proprietary technology use right of mortgaged property.
(4) Land value-added tax
Financial enterprises shall calculate and pay the land value-added tax in accordance with the provisions of the Provisional Regulations on Land Value-added Tax in People's Republic of China (PRC) when disposing of the state-owned land use right, the above-ground buildings and their attachments obtained by paying debts. Because the calculation of land value-added tax is complicated, it will be levied according to a certain proportion of disposal income in practice.
(5) Income tax
The income obtained from the disposal of debt-paying assets by financial enterprises shall be included in the taxable income of income tax and carried forward according to the taxable cost determined when the debt-paying assets are obtained. If the amount of depreciation or amortization of debt-paid assets calculated according to the taxable cost has been deducted before tax, the balance after deducting the depreciation or amortization deducted before tax according to the taxable cost at the time of debt repayment shall be deducted before income tax.
If the debt-paying assets are losses at the time of disposal, tax treatment shall be carried out in accordance with the provisions of the Administrative Measures for Deduction before Income Tax on Enterprise Property Losses.