Mainland Taxation

Tax characteristics

1. Mandatory. The state, in its capacity as a social manager, relies on the power of political power and political power to carry out compulsory expropriation through the promulgation of laws or decrees.

2. Gratuitous. Gratuitivity is linked to the nature of the distribution of income by the state by virtue of its political power. Through taxation, a part of the income of social groups and members of society is transferred to the State, and the State does not pay any remuneration or consideration to the taxpayers.

3. Fixity. Both the taxing and the taxpayer must abide by the pre-specified standards of taxation, and neither the taxpayer may violate or change this fixed ratio or amount and other institutional provisions unless it is amended or adjusted by national decree.

Mainland companies file tax returns

There are three main types of taxes for mainland companies: value-added tax & additional tax and enterprise income tax, and the declared tax is value-added tax (monthly/quarterly), enterprise income tax (quarterly) and individual income tax (monthly), while the tax rate of mainland enterprise income tax is 25%.

The time of annual report, tax cycle and tax filing time of mainland companies

Industry and Commerce - Complete the previous year's enterprise credit publicity before the end of June each year; Taxation - complete the final settlement of enterprise income tax before the end of May each year; Commercial Commission - Complete the joint annual report of the Foreign Investment Commission before the end of June each year. Mainland companies are required to file tax returns within 15 days after the end of each tax quarter after their registration.

Tax filing process

① Review all kinds of original vouchers, and prepare accounting vouchers after the audit is correct;

② Register various sub-ledgers according to accounting vouchers;

③ At the end of the month, make accrual, amortization, and carry-over accounting vouchers, summarize all accounting vouchers, prepare a summary table of accounting vouchers, and register the general ledger according to the summary table of accounting vouchers.

China tax planning

Tax risk planning and control is the process of selecting the best and sub-optimal solutions among many reasonable tax avoidance plans in accordance with the principles of profit maximization, legitimacy and rationality under the premise of complying with tax laws.

Analysis of the tax planning environment and clarification of tax planning positioning

(1) Analysis of the relationship between governments at all levels, tax authorities and enterprises.

(2) Practical analysis of tax policies in various regions.

(3) Analysis of the understanding and analysis of tax planning by various interest levels of the enterprise.

(4) Analysis of the relationship between enterprises' adaptation to various laws and regulations and tax planning.

Assess your tax status and be aware of it

(1) Diagnosis of tax problems (focusing on value-added tax, business tax, enterprise income tax, and individual income tax).

(2) Analyze tax hazards, find tax losses, and confirm tax avoidance space.

(3) Draw up a list of tax problems and indicate the degree of solution.

(4) Let you be aware of the tax risks.

Analyze preferential tax policies and create conditions for full enjoyment

(1) Analyze the tax incentives of the central government.

(2) Analyze the tax incentives of local governments.

(3) Analyze the degree of enjoyment and the reasons.

(4) Analyze the idea of enjoying preferential treatment.

Design the overall plan of tax planning

(1) Analysis of the distribution of tax benefits.

(2) Analysis of medium- and long-term tax targets.

(3) Organizational restructuring.

(4) System and process construction.

(5) Investment development tips.

(6) Tax PR strategy.

(7) Turnkey solutions.

(8) Single solution.

Assess tax planning benefits

(1) Assessment of the direct benefits of each tax plan.

(2) Assessment of indirect benefits from various tax planning.

(3) Overall risk assessment of tax planning.

(4) Classification risk assessment of tax planning.

The value of tax risk planning and control is as follows:

(1) Recover tax losses and eliminate hidden tax hazards.

There are two types of enterprise tax problems: one is tax loss, that is, failing to make full use of preferential tax policies and paying more taxes that should not be paid, and the other is tax hidden dangers, that is, enterprises consciously or unconsciously violate the rules, although they are not exposed now, they may bring trouble in the future.

(2) Take the opportunity of strengthening tax management to improve the level of enterprise management.

Taxation is not simply a matter for the financial department, but is closely related to all aspects of business activities. The standardization of tax administration will help to further improve the overall management level of enterprises.

(3) Enhance the competitiveness of enterprises.

Taxation belongs to the category of "cost" of enterprises, as the largest part of non-operating expenses, which directly affects the profitability of enterprises. Competing with others in the face of unfair tax burdens is essentially not racing on the same starting line.