Q：
|
How to deduct related expenses incurred at the same time with the welfare donation?
|
A：
|
Expenses, which was incurred by enterprises along with donating non-monetary assets, have included in the amount recorded in donation notes issuing by state agencies and public welfare social organizations, shall be regarded as public welfare donation expenditures. It can be deducted before tax. If the expenses have not included in the amount recorded in donation notes, it shall be regarded as enterprises expenses and can be deducted before tax. While the expenses are not allowed to be double deducted before tax. Such expenses include freight, insurance, labour costs etc.
|
Q：
|
How to pay tax for convertible bonds to equity?
|
A：
|
When a bond holder converts convertible bonds and uncollected interest receivable the year into stocks, the uncollected interest receivable shall be recognized as realized interest income and declare for Enterprise Income Tax (EIT). After converting into stocks, the original purchase price, unpaid interest receivable for previous years, and related taxes can all be included in the cost of the convertible stock.
For issuers, the interest paid for issuing convertible bonds is regarded as financing costs. It can be deducted before tax in accordance with regulations. If bond holder converts bonds and uncollected interest receivable the year into stocks, issuers shall recognize the unpaid interest payable shall be deemed to have been paid. That unpaid interest payable can be deducted before tax according to the regulations.
|
Q：
|
How to pay tax for relevant assets after the verification of EIT is changed to collect based on the actual basis?
|
A：
|
1.
|
If enterprises can provide invoices for purchasing assets, the amount stated in invoices shall be used as the tax basis. If enterprises cannot provide invoices for purchasing assets, the amount recorded in the asset purchase contract (agreement), capital payment certificate, accounting data, etc. may be used as the tax basis.
|
|
2.
|
When the verification of EIT is changed to collect based on the actual basis, the assets put into use before change still need to be accrued the depreciation and amortization amount for remaining life and deducted before tax. The remaining life of assets is calculated by the depreciation and amortization period stated by tax law deducts the service life of the assets.
|
|
Q：
|
How to pay tax for cultural relics and artworks collected by enterprises?
|
|
A：
|
Cultural relics and artworks purchased by enterprises for collection, display, preservation, and appreciation, they shall be regarded as investment assets to pay tax. The depreciation and amortization accrued during the holding period of cultural relics and artworks shall not be deducted before tax.
|
Q：
|
When shall be confirmed as income for the government financial disbursement obtained by enterprises?
|
A：
|
Enterprises sell goods and provide labour services at market prices. Income shall be recognized in accordance with the principal of accrual, if the government finance department pays all or part of the funds according to a certain proportion of the amount of goods sold and labour services provided.
Except for the above-mentioned circumstances, all other government financial disbursement obtained by enterprises, such as financial subsidies, compensation, and tax refund, shall be recognized in accordance with the actual time when the income is obtained.
|
FAQ
