Clearance of pilot tax policy for operation reform

On the 27th, the Ministry of Finance and the State Administration of Taxation jointly issued the "Circular on the Taxation Policy for the Implementation of the Business Tax for the Renovation of Value-Added Taxes in the Transportation Industry and Some Modern Service Industries in the Whole Country" (hereinafter referred to as the "Notice"). It is clear from August 1 this year. , To carry out taxation policies related to the conversion of business tax to value-added tax pilots in the transportation industry and some modern service industries nationwide.

A tax system source pointed out that the national pilot tax policy compared with before, in the difference policy and deduction policy made adjustments.

The "Notice" also shows that the newly incorporated radio and television services, as subheads of some modern service tax purposes, will be taxed at a rate equivalent to 6% for modern service industries.

Pre-launch pilot policy repealed in the same period

The "Notice" made it clear that the taxable services involved in the pilot "Accumulation Improvement Program" after expansion on August 1 will include land transportation services, water transportation services, air transportation services, pipeline transportation services, research and development and technical services, and information technology services. Cultural and creative services, logistics support services, tangible and movable property rental services, forensic consulting services, and radio and television services.

As for tax rates, we provide tangible property leasing services with a tax rate of 17%; providing transportation services with a tax rate of 11%; providing modern service industries other than tangible property leasing services with a tax rate of 6%; and the Ministry of Finance and National Taxation. The tax rate for taxable services prescribed by the General Administration of Industry is zero.

For the radio and film service industry that has been newly included in the pilot, the "Notice" clearly defines it as a sub-head of some modern service tax purposes. This means that the industry will be equivalent to the modern service industry at a 6% tax rate.

The "Notice" also clarified that the scope of taxable services for broadcasting, film and television services mainly includes production services, distribution services, and broadcasting (including screening) services for radio and television programs (works).

Regarding previous concerns of the industry and calling for the cleanup of existing documents to avoid the problem of excessive enforcement of documents, the Ministry of Finance stated that the "Notice" has integrated the taxation policies of the previous pilots, and clarified that the relevant tax policies of the pilots in the previous period stipulated It will be repealed on August 1.

The previous executive meeting of the State Council on April 10 had made it clear that this year's reform of the “reform from the camp” will expand the pilot, and one of them is to expand the pilot area. Since August 1st, pilot projects for the “transformation and sales increase” of the transportation industry and some modern service industries have been pushed across the country, and some modern service industries have been appropriately expanded to include the production, broadcast, and distribution of radio and television works. . According to calculations, all pilot companies in the region will reduce the burden by about 120 billion yuan in 2013.

The State Council finalized the reform of the “Camp Renovation” pilot to expand the country’s capacity to the financial sector to formally issue documents. The time reserved for the local taxation authorities was only two months, and some tax officials stated that the reserve time was too tight and related to the handover of national taxation. Work intensity is great.

Enterprises can purchase and use cars for deduction

Wang Jun, a partner of Sino-Johnson Certified Tax Agents, told the First Financial Daily that the difference in this policy is that the difference in taxation has changed. It was not divided into non-pilot areas and pilot areas before the national push. There are some differences in taxation policies. After the promotion in the country, there is basically no difference in taxation.

Chen Zhijian, deputy general manager of Beijing Huaxingsheng Taxation Firm, also stated that the new pilot scheme only retains the difference policy of tangible and movable financial leasing, and has a greater impact on small-scale enterprises in industries where there is a large amount of funds to be transferred or paid for. Before the reorganization of the camp, the amount of its substitution and substitution shall be reasonably deducted from the calculation of the business tax; after the increase of the reorganization, no difference shall be paid, and because the small-scale taxpayer cannot deduct the deduction, the impact will be greater. However, Chen Zhijian also pointed out that this is a temporary pain. "Value-added tax is taxed on value-added items. If there is no expansion policy in the same industry across the country, there is no development policy."

In addition, the document also stipulates that the input tax for motorcycles, automobiles, and yachts subject to the original VAT general taxpayer's self-used consumption tax can be deducted from the sales tax.

Wang Jun said that the original VAT general taxpayer's purchase can not be deducted, and this reform can all be deducted.

"When the Shanghai Brigade increased its trials, we recommended that VAT general taxpayers not to buy cars by themselves, lease companies to rent, and open VAT invoices. Shanghai has made it clear that this can be deducted, but Beijing is not allowed to do so. Now, this rule is to quell this kind of controversy, said Wang Jun.

Financial Subsidies of Local Governments Affect Unfavorable Tax Reform
The executive meeting of the State Council on April 10 also proposed to expand the industry pilots this year and select the right to include railway transportation, post and telecommunications and other industries as pilots for “change in business operations,” and strive to fully complete the reform of “reform through reform” during the “12th Five-Year Plan” period.

However, at present, there is still no official timetable for the “restructuring reform and increase” of these two industries. Prior to this, corporate documents such as telecommunications showed that companies have started to arrange related work, and news of pilots starting from July 1 was reported, but not yet. Officially confirmed.

The industry has always believed that railway transportation and post and telecommunication communications tend to be piloted at the same time in these two industries nationwide because of their industry specificity. Wang Jun said that the pilot projects in these two industries can not apply the current policy, especially telecommunications need to start another document and then launch the document. “The Ministry of Finance and the State Administration of Taxation may consider pushing the mature pilot industry first across the country, so that the nation will have experience in reforming the country, and it will be easier to bring rail transport and postal communications to the country.”

All along, the “reform from business reforms” has been regarded by the industry as an important part of improving the structure of the tax system, avoiding the problem of double taxation. However, it has always been controversial whether the tax increase or reduction will be affected.

Wang Yujun, dean of the Financial Research Institute of Central University of Finance and Economics, believes that the more important significance of “reform by business reform” lies in the reshuffling of the tax distribution system. Tax cuts are only a small part of it, and its role is far from investment-driven economic growth. The rationalization of the interests of the central and local governments is even more significant.

Regarding the way in which local governments adopt fiscal subsidies for increasing tax burdens, including some fiscal and tax officials, they consider that this is not a long-term solution.

Wang Jun also stated that there is no local income increase and subsidies do affect local finances. Therefore, the Central Government has not yet uniformly provided for subsidies. Currently, all localities determine whether they need subsidies. After nationwide promotion, some places may cancel financial subsidies.

On the one hand, the local government has promoted tax reforms to increase "tax reductions," and on the other hand it has provided financial subsidies to enterprises that have "increased losses." Chen Zhijian does not approve. He pointed out that this kind of government subsidy is not suitable for tax reform. What the government needs to do is to improve the tax system instead of subsidizing it. Moreover, enterprises should not wait for the subsidy, but should adapt and accept market adjustments so as to adapt New tax system.