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Q:
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Does the taxpayers need to obtain the invoices of bank charges?
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A:
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All entities and individuals engaged in production and business activities shall obtain the invoices from the payee when making payments for goods, receiving services, and engaging in other business activities.
Therefore, if an enterprise pays interest or bank charges to the bank, it should obtain the invoices from the bank.
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Q:
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Can a bank receipt be used instead of invoice? What are the tax risks?
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A:
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Invoices should be obtained for bookkeeping. If there is no invoice, the taxable income needs to be adjusted when annual declaration of enterprise income tax. If the invoice is not obtained in accordance with the regulations and deducted from profit for tax calculation, a fine and late fee will be paid.
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Q:
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What should the taxpayers do if the bank does not issue invoice?
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A:
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Any entities or individual can report violations of invoice management regulations. The tax authorities shall keep the informants confidential and reward them as appropriate
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Q:
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Does the taxpayers need the invoice for loan interest?
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A:
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Loan interest also needs to be invoiced and the general VAT invoices can be accepted, as the loan interest is not deductible for input VAT, but also required for deduction from profit.
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Q:
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Does the account owners need to issue the invoices for interest income to the bank?
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A:
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Interest income is non-taxable income. According to the regulations on non-taxable of VAT in Annex 2 of Circular No. 36 of 2016, deposit interest is non-taxable income. No need to issue the invoices the bank for non-taxable income.
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FAQ
