Accounting treatment of free transfer of state-owned assets
When an enterprise receives fixed assets transferred free of charge in accordance with relevant regulations and approved by relevant departments
Debit: Fixed assets
Loans: Capital reserves - fixed assets transferred free of charge
Bank deposits
When an enterprise transfers fixed assets free of charge in accordance with relevant regulations and reports to the relevant departments for approval Out of fixed assets
(1) Debit: Fixed assets liquidation
Accumulated depreciation
Fixed assets impairment provision
Credit: Fixed assets
State-owned assets are the sum of various economic resources that are legally determined to be owned by the state and can provide economic and social benefits to the country. It is the general term for all property and property rights owned by the state. The country belongs to the historical category, so state-owned assets are also formed and developed with the emergence of the country. In real economic life, the concept of "state-owned assets" has two different understandings, broad and narrow.
Accounting treatment and corporate income tax of free transfers
Free transfers are an important task in the management of state-owned assets. According to the "Interim Measures for the Administration of the Free Transfer of State-owned Property Rights of Enterprises" (State-owned Property Rights [2005] No. 239), the parties that can become the transfer parties (the transferring party and the transferring party) for free are government agencies, public institutions, wholly state-owned enterprises, A wholly state-owned company. The "Guidelines for the Free Transfer of State-owned Property Rights of Enterprises" (Guozifa Quanquan [2009] No. 25) also adds the state-owned limited company.
According to these two regulations, not all wholly state-owned enterprises can become transfer parties, such as ordinary limited liability companies established by two wholly state-owned companies. Theoretically, any wholly-owned state-owned unit can become the transfer party. The regulations of the State-owned Assets Supervision and Administration Commission are not comprehensive and should be improved.
There are two accounting treatments for free transfers. One is to use the capital reserve account, and the other is to use the non-operating income (expense) account. Free transfer is the transfer of assets between state-owned units and cannot be counted as income (expense). Therefore, it should be handled in the first way. Donations are processed in the second way. If a free transfer is treated in this way, it is equivalent to a donation.
"Notice of the Ministry of Finance on the 2008 Annual Report of Enterprises that Implement Accounting Standards" (Financial Letter [2008] No. 60) stipulates: "Donations and debt exemptions accepted by enterprises shall be confirmed in accordance with the provisions of accounting standards. If there are conditions, it should usually be recognized as income for the current period. If a direct or indirect donation is received from the controlling shareholder or the controlling shareholder's subsidiary, and it is judged from the economic essence to be the controlling shareholder's capital investment in the enterprise, it should be regarded as an equity transaction, and the relevant gains shall be calculated. "Into owners' equity (capital reserve)." This provision is in line with the actual situation, but unfortunately this document is not a universal document.
If the second method is followed, the free transfer will increase the non-operating income and should pay corporate income tax. The first method does not involve current profits and losses, so no income tax should be paid. The Ministry of Finance and the State Administration of Taxation do not have unified regulations on this. In previous years, no income tax was paid on free transfers; in recent years, tax authorities in many places have issued documents requiring the payment of income tax.
Shandong University made a free transfer and was required to pay income tax as the accounting treatment was capital reserve. This is unreasonable. Due to this incident, the school suspended the free transfer and changed it to a capital increase. However, free transfer and capital increase are not the same thing. First, the scope of application of free transfer is much wider than that of capital increase, which only applies between shareholders and invested enterprises. Capital increase generally refers to increasing registered capital, which is different from free transfer.
In late May, the State Administration of Taxation issued the "Announcement on Several Issues Concerning the Taxable Income of Enterprise Income Tax" (State Administration of Taxation Announcement No. 29, 2014).
Provisions:
(1) Enterprises receive assets transferred from shareholders (including assets donated by shareholders, and listed companies receive assets donated by original shareholders of non-tradable shares and shareholders of new non-tradable shares during the share-trading reform process) , shareholders give up the equity of the enterprise, the same below), if the contract or agreement stipulates that it will be used as capital (including capital reserve) and has been actually processed in accounting, it will not be included in the total income of the enterprise, and the enterprise shall determine it based on fair value The tax basis of the asset.
(2) When an enterprise receives assets transferred from shareholders and treats them as income, the fair value shall be included in the total income, the corporate income tax shall be calculated and paid, and the tax base of the asset shall be determined according to the fair value.
This decision was long overdue. For free transfers, this is good news after all. The fragmentation of local tax authorities is over. This decision is basically in line with the actual situation. However, its scope of application is smaller than that of free transfer and needs to be further expanded. In addition, free transfer requires approval documents from the competent department, which is an administrative measure and does not require "contracts or agreements." The regulations of the State Administration of Taxation are somewhat harsh and unreasonable.
Fiscal and tax treatment of free transfer of assets by enterprises
Free transfer of assets usually involves the treatment of corporate income tax, business tax, land value-added tax, deed tax, value-added tax, stamp duty and other taxes.
In practice, there is a phenomenon of free transfer of assets between parent and subsidiary companies and between subsidiaries in many state-owned enterprise groups.
What taxes must be paid on this free transfer of assets in terms of tax law? The new accounting standards do not identify the business nature and financial recognition of the free transfer. In practice, free transfer tends to be understood as additional or reduced investment. In order to facilitate operation, investment is first reflected in the increase or decrease of capital reserve, so that there is no need to make industrial and commercial changes. That is, for the transfer party, the assets and capital reserves will be increased at the same time; for the transfer party, the assets and capital reserves will be reduced at the same time.
Free transfer of assets usually involves the treatment of taxes such as corporate income tax, business tax, land value-added tax, deed tax, value-added tax and stamp duty.
Corporate income tax must be paid
Free transfers are subject to corporate income tax according to the tax law. Article 6 of the "Enterprise Income Tax Law" stipulates: "The income obtained by an enterprise from various sources in monetary and non-monetary forms shall be the total income, including income from donations." Article 21 of the Implementation Regulations of the Enterprise Income Tax Law stipulates : “Income from donations as mentioned in Item (8) of Article 6 of the Enterprise Income Tax Law refers to the monetary assets and non-monetary assets that an enterprise accepts from other enterprises, organizations or individuals for free.”
"Notice of the State Administration of Taxation on the Income Tax Treatment of Enterprises Disposal of Assets" (Guo Shui Han [2008] No. 828) stipulates that in the following circumstances when an enterprise transfers assets to others, the ownership of the assets has changed. Assets that are not internally disposed of should be deemed as sales to determine revenue in the following six situations: used for marketing or sales; used for social entertainment; used for employee rewards or benefits; used for dividend distribution; used for external donations; other changed assets All rights reserved.
Based on the above regulations, the free transfer of assets should be regarded as a donation because it involves the transfer of asset ownership. The party to which the assets are transferred must determine the taxable income based on the fair value of the assets received, and calculate and pay the enterprise Income tax; the party transferring the assets shall treat it as a sale, determine the taxable income based on the difference between the fair value and the book value of the transferred assets, and calculate and pay corporate income tax.
Stamp duty must be paid for documents involving the transfer of property rights
According to the "Interim Measures for the Administration of the Free Transfer of State-owned Property Rights of Enterprises" (Guozifa Quanquan [2005] No. 239), free transfer Both parties should sign a free transfer agreement. If the free transfer of assets between enterprises involves the registration of property rights transfer, according to the provisions of the "Interim Regulations on Stamp Duty", the property rights transfer document will be decaled at 50,000% of the amount stated. Stamp duty must be paid in accordance with regulations for transfer documents including property ownership and copyright, exclusive rights to trademarks, patent rights, rights to use proprietary technology, etc.
In addition, regarding the issue of stamp tax on the free transfer of listed company equity through stock exchanges, according to the "Notice of the State Administration of Taxation on Approval Matters Concerning the Temporary Exemption of Stamp Tax on Securities (Stock) Transactions in Handling the Free Transfer of State-owned Equity of Listed Companies" 》 (Guo Shui Han [2004] No. 941), for the free transfer of state-owned equity of listed companies that occurs as a result of the reorganization and restructuring of state-owned (including state-controlled) enterprises decided or approved by the State Council and provincial people's governments, securities (stocks) are temporarily not levied ) transaction stamp duty.
No deed tax
There is a clear policy basis for free transfer without levying deed tax. According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Deed Tax Policies for the Restructuring and Reorganization of Enterprises and Institutions" (Caishui [2012] No. 4), administrative adjustments and transfers shall be made to the people's governments at or above the county level or state-owned assets management departments in accordance with regulations. Units with state-owned land and housing ownership are exempt from deed tax. The transfer of land and house ownership between enterprises affiliated to the same investment entity, including between a parent company and its wholly-owned subsidiaries, between wholly-owned subsidiaries of the same company, and between the same natural person and his or her sole proprietorship or one-person limited company. The transfer of land and house ownership between two entities is exempt from deed tax.
Article 5 of the "Implementation Rules of the Interim Regulations on Business Tax" stipulates that any unit or individual who donates real estate or land use rights to other units or individuals for free shall be regarded as a taxable act.
Therefore, if the free transfer between companies involves real estate assets such as factories and houses, a business tax of 5% shall be paid as deemed sales, and urban construction tax and education surcharge shall be paid in accordance with the prescribed proportions.
Land value-added tax and value-added tax should be paid
Article 2 of the "Implementation Rules of the Interim Regulations on Land Value-added Tax" stipulates that the transfer of state-owned land use rights, buildings on the ground and their attachments And obtaining income refers to the act of transferring real estate with compensation through sale or other means, and does not include the act of transferring real estate without compensation in the form of inheritance or donation.
The "Notice of the Ministry of Finance and the State Administration of Taxation on Specific Issues Concerning Land Value-Added Tax" (Finance and Taxation [1995] No. 48) points out that the "donation" mentioned in the details refers to the following two situations.
First, the owner of the property or the owner of the land use right donates the property right of the house or the land use right to the immediate family member or the person with the direct support obligation.
Second, the property owners and land use rights owners donate the property rights and land use rights to education, civil affairs and other social welfare and public welfare undertakings through non-profit social groups and state agencies in China. Therefore, the free transfer of assets between companies does not fall into the above two situations and should be subject to land value-added tax.
The transfer of fixed assets, inventory and equipment is an act deemed to be a sale and is subject to value-added tax. Item 8 of Article 4 of the "Implementation Rules for the Interim Regulations of the People's Republic of China on Value-Added Tax" (Order No. 50 of the Ministry of Finance and the State Administration of Taxation of the People's Republic of China) stipulates that entities or individual industrial and commercial households will The goods produced, commissioned for processing or purchased are given to other units or individuals free of charge, and are deemed to be sales of goods and subject to value-added tax.
If the transfer of assets is regarded as asset reorganization, then according to the "Announcement of the State Administration of Taxation on Value-Added Tax Issues Concerning the Reorganization of Taxpayer Assets" (State Administration of Taxation Announcement No. 13 of 2011), the taxpayer During the process of asset reorganization, all or part of the physical assets and their associated claims, liabilities and labor are transferred to other units and individuals through mergers, divisions, sales, replacements, etc., which do not fall within the scope of VAT. , no VAT is levied on the transfer of goods involved.
Expansion: State-owned Assets Management Measures
Chapter 1, General Provisions
Article 1 In order to correctly reflect the value of state-owned assets and protect the owners and operators of state-owned assets These measures are formulated to protect the legitimate rights and interests of authors and users.
Article 2 For the evaluation of state-owned assets, unless otherwise provided by laws and regulations, these Measures shall apply.
Article 3 If a state-owned asset possessing unit (hereinafter referred to as the possessing unit) has any of the following circumstances, it shall conduct an asset appraisal:
(1) Asset auction and transfer;
(2) Enterprise mergers, sales, joint ventures, and joint-stock operations;
(3) Establishing Sino-foreign joint ventures or Sino-foreign cooperative enterprises with foreign companies, enterprises, other economic organizations or individuals;
(4) Enterprise liquidation;
(5) Other situations that require asset evaluation in accordance with relevant national regulations.
Article 4 If the occupying unit has one of the following circumstances, the parties may conduct asset appraisal if they deem it necessary: ??
(1) Asset mortgage and other guarantees;
(2) Enterprise leasing;
(3) Other situations that require asset evaluation.
Article 5 The assessment of state-owned assets nationwide or in specific industries shall be determined by the State Council.
Article 6 The scope of state-owned assets evaluation includes: fixed assets, current assets, intangible assets and other assets.
Article 7 The assessment of state-owned assets shall follow the principles of authenticity, scientificity, and feasibility, and shall be assessed and estimated in accordance with the standards, procedures and methods prescribed by the state.
Chapter 2, Organization and Management
Article 8 The state-owned assets assessment work shall be managed and supervised by the state-owned assets management administrative department in accordance with the state-owned assets management authority.
The organization of state-owned assets evaluation shall be the responsibility of the competent industry departments according to the affiliation of the occupying units.
State-owned assets management administrative departments and industry authorities do not directly engage in state-owned assets evaluation business.
Article 9 Asset appraisal companies, accounting firms, audit firms, and financial consulting companies that hold a state-owned assets appraisal qualification certificate issued by the State Council or the state-owned assets management administrative department of the people's government of a province, autonomous region, or municipality directly under the Central Government , a temporary appraisal agency (hereinafter collectively referred to as the asset appraisal agency) recognized by the State Council or the administrative department of state-owned assets management of the people's government of a province, autonomous region, or municipality directly under the Central Government (hereinafter collectively referred to as the asset appraisal agency) may accept the entrustment of the occupying unit to engage in state-owned asset appraisal business.
The management measures for the asset appraisal institutions listed in the preceding paragraph shall be formulated by the administrative department of state-owned assets management under the State Council.
Article 10 When entrusting an asset appraisal agency to conduct asset appraisal, the occupying unit shall truthfully provide relevant information and information. The asset appraisal agency shall keep confidential the relevant information and information provided by the possessing unit.
Article 11 Asset appraisal agencies conduct asset appraisal and provide paid services. The asset assessment and charging methods shall be formulated by the state-owned assets management administrative department of the State Council in conjunction with the financial department and the price department.
Chapter 3, Assessment Procedures
Article 12 The assessment of state-owned assets shall be carried out in accordance with the following procedures:
(1) Application for project approval;
(2) Asset inventory;
(3) Assessment and estimation;
(4) Verification and confirmation.
Article 13 The possessing unit that conducts asset appraisal in accordance with the provisions of Articles 3 and 4 of these Measures shall submit the asset appraisal to the state-owned assets management administrative department at the same level after review and approval by its competent department. Project application form, accompanied by property catalog and relevant accounting statements and other information.
Upon authorization or entrustment by the administrative department for state-owned assets management, the competent department of the occupying unit may examine and approve the application for asset appraisal project.
Article 14 The administrative department for state-owned assets management shall review the application for asset appraisal project within ten days from the date of receipt, make a decision on whether to approve the asset appraisal project, and notify the applicant unit and its supervisor. department.
Article 15 If the State Council decides to conduct state-owned assets assessment nationwide or in specific industries, it shall be deemed to have approved the establishment of the asset assessment project.
Article 16 After receiving the notice of approval of asset appraisal project, the applicant unit may entrust an asset appraisal agency to appraise the assets.
Article 17 The asset appraisal agency entrusted by the occupying unit shall, on the basis of a comprehensive inventory of the assets, claims and debts of the entrusting unit, verify whether the asset books are consistent with the actual situation and whether the operating results are authentic. , based on which identification can be made.
Article 18 The asset appraisal agency entrusted by the occupying unit shall evaluate and estimate the value of the assets being appraised by the entrusting unit in accordance with the provisions of these Measures, and submit an asset appraisal results report to the entrusting unit. .
After receiving the asset appraisal results report from the asset appraisal agency, the entrusting unit shall submit it to its competent department for review; after the competent department has reviewed and approved the report, it shall report it to the state-owned assets management administrative department at the same level for confirmation of the asset appraisal results.
Upon authorization or entrustment by the administrative department for state-owned assets management, the competent department of the occupying unit may confirm the asset evaluation results.
Article 19 The administrative department for state-owned assets management shall organize review, verification, and consultation within 45 days from the date of receipt of the asset evaluation results report submitted by the occupying unit, and confirm the asset evaluation results, and issue a confirmation notice.
Article 20 If the occupying unit has objections to the confirmation notice, it may apply for review to the superior state-owned assets management administrative department within fifteen days from the date of receipt of the notice. The state-owned assets management administrative department at the next higher level shall make a ruling within thirty days from the date of receipt of the review application and issue a ruling notice.
Article 21 After receiving the confirmation notice or ruling notice, the possessing unit shall handle the accounting in accordance with the relevant national financial and accounting systems.
Chapter 4, Valuation Methods
Article 22 The revaluation value of state-owned assets shall be based on the original value, net value, condition, replacement cost, profitability and other factors of the asset. and the asset valuation methods stipulated in these Measures.
Article 23: State-owned assets valuation methods include:
(1) Present value of income method;
(2) Replacement cost method;
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(3) Current market price method;
(4) Clearing price method;
(5) Other evaluation methods specified by the administrative department for state-owned assets management under the State Council.
Article 24 If the present value method of income is used for asset valuation, the present value of the asset shall be calculated based on the reasonable expected profitability of the assessed asset and the appropriate discount rate, and based on this Assess revaluation value.
Article 25 If the replacement cost method is used for asset valuation, the replacement cost of the asset in new condition shall be based on the replacement cost, minus the accumulated depreciation calculated based on the replacement cost over the useful life. The revaluation value shall be assessed by considering changes in asset function, newness rate and other factors, or the newness rate shall be re-determined based on the service life of the asset, taking into account changes in asset function and other factors, and the revaluation value shall be assessed.
Article 26 If the current market price method is used for asset valuation, the revaluation value shall be assessed with reference to the market price of the same or similar assets.
Article 27 If the liquidation price method is used for asset valuation, the revaluation value shall be assessed based on the realizable value of the assets when the enterprise is liquidated.
Article 28 When evaluating raw materials, work-in-progress, collaborative parts, inventory goods, low-value consumables, etc. in current assets, the current market price and planned price of the asset shall be used. , taking into account factors such as acquisition cost, product completion level, loss, etc., to assess the revaluation value.
Article 29 For the evaluation of marketable securities, the revaluation value shall be assessed with reference to the market price; if there is no market price, the revaluation value shall be assessed by considering factors such as face value and expected income.
Article 30: The revaluation value of the intangible assets of the occupying unit shall be assessed based on the following circumstances:
(1) For purchased intangible assets, the revaluation value shall be determined based on the purchase cost and the asset Profitability;
(2) Intangible assets that are self-created or owned by oneself, based on the actual cost required when forming and the profitability of the asset;
(3) Intangible assets that are self-created or owned and whose cost is not separately calculated shall be based on the profitability of the asset.
Chapter 5, Legal Responsibilities
Article 31 The possessing unit violates the provisions of these Measures, provides false information and information, or colludes with the asset appraisal agency to cheat, causing the asset appraisal to fail. If the results are untrue, the administrative department for state-owned assets management may declare the asset assessment results invalid, and may impose the following penalties individually or in combination depending on the severity of the case:
(1) Notification of criticism;
(2) Make corrections within a time limit, and may impose a fine equal to or less than the assessment fee;
(3) Request the relevant departments to impose administrative sanctions on the person in charge of the unit and the person directly responsible, and may impose a fine equal to the person's three Penalties below the monthly basic salary.
Article 32: If an asset appraisal agency cheats or neglects its duties, causing the asset appraisal results to be inaccurate, the state-owned assets management administrative department may declare the asset appraisal results invalid, and may assess the assets based on the seriousness of the case. The agency imposes the following penalties:
(1) Warning;
(2) Suspension of business for rectification;
(3) Revocation of state-owned assets assessment qualification certificate.
Article 33 If the punished units and individuals are dissatisfied with the punishment decision made in accordance with the provisions of Articles 31 and 32 of these Measures, they may Within fifteen days, apply for reconsideration to the higher-level state-owned assets management administrative department. The state-owned assets management administrative department at the next higher level shall make a reconsideration decision within 60 days from the date of receipt of the reconsideration application. If the applicant is dissatisfied with the reconsideration decision, he may file a lawsuit with the People's Court within fifteen days from the date of receipt of the reconsideration notice.
Article 34 If any staff member of the administrative department for state-owned assets management or the department in charge of industry violates these Measures, takes advantage of their powers to seek personal gain, or neglects their duties, causing losses to state-owned assets, the administrative department for state-owned assets management or the administrative department for industry shall The competent industry authorities may impose administrative sanctions in accordance with the cadre management authority and may impose a fine equivalent to less than three months' basic salary.
Anyone who violates these Measures and takes advantage of his authority to seek personal gain shall have his illegal gains recovered by the department with the power to investigate and deal with him in accordance with the law.
Article 35 If the violation of these Measures is serious and constitutes a crime, the judicial authorities shall investigate the criminal liability in accordance with the law.
Chapter 6, Supplementary Provisions
Article 36 These Measures do not apply to the evaluation of overseas state-owned assets.
Article 37 The evaluation methods for the paid use and exploitation of state-owned natural resources shall be separately formulated by the State Council.
Article 38 The administrative department for state-owned assets management under the State Council is responsible for the interpretation of these Measures. The detailed rules for the implementation of these Measures shall be formulated by the administrative department for state-owned assets management under the State Council.
Article 39 These Measures shall come into effect on the date of promulgation.