School canteen contracting business, the first thing to consider is whether the contracting fee charged by the enterprise tax issues. The contracting fee charged by the enterprise should be included in the taxable income to pay enterprise income tax which is undoubtedly, then the business tax? There has been such a tax planning case: an enterprise will canteen contracting business, in order to make the collection of contracting fees do not pay business tax, by a tax planning firm, suggested that the contractor does not receive a business license. The planning is based on the Notice on the Problem of Leasing Real Estate to Obtain Fixed Income for Business Tax (Guo Shui Han [2001] No. 78). According to the document, the enterprise will contract the assets to the internal staff or other people to operate, and only provide the facade and so on without providing the products and funds, and collect the fixed management fee, etc., if the contractor receives the business license, it belongs to the income obtained by engaging in the leasing business, and should pay the business tax according to the "service industry--leasing", instead of paying the business tax. If the contractor receives a business license, the income is from leasing business and should be subject to business tax under "Service Industry - Leasing", while if the contractor does not receive a business license, the income belongs to the internal distribution and is not subject to business tax. However, this policy has been further stipulated later. According to the Circular on Several Issues of Business Tax Cai Shui [2003] No. 16, whether an enterprise leasing out assets and charging rental fees belongs to the internal distribution behavior and does not pay business tax must depend on whether it meets the following three conditions, i.e. 1) the contractor operates externally in the name of the outsourcing party, and the outsourcing party bears the corresponding legal responsibility; 2) all the operating revenues and expenditures of the contractor are fully included in the financial accounting of the outsourcing party; 3) the outsourcing party Contractor and the contractor benefit distribution based on the profit of the contractor. According to the principle that the former is subordinate to the latter, the key to determine whether the contracting fee charged by an enterprise should pay business tax is whether it meets the three conditions of the Issue No. 1, not whether the contractor receives a business license. According to the above program, although the contractor does not receive a business license, if the contractor's business income and expenditure into the end of the contracting party's accounting, the contracting party not only can't rabbit to pay the contracting fee business tax, and the contracting party, including the tax debt has to assume joint and several liability, the risk of visible is very big, so the above planning program is actually not desirable.

The second thing to consider is the canteen contracted to determine the taxpayer. It should be clear that whether the canteen is contracted or not, it involves business tax and income tax, and the difference only lies in the fact that the taxpayers may be different. Before contracting, depending on whether the canteen is an independent accounting unit, and the enterprise or the canteen itself as the taxpayer; after contracting, according to the "Rules for the Implementation of the Taxation Administration Law", such as contractors or lessees have independent production and operation rights, independent accounting in financial terms, and regularly pay the contractor fees or rent to the contractor, the contractor shall pay taxes on its production and operation income and income. That is to say, if the contractor end for business license, and its business income and expenditure into the enterprise or canteen accounting, then the determination of the tax obligor and canteen before contracting the same, and its internal and external services provided by the income obtained whether to collect business tax is also the same as the principle of confirmation before contracting; if the contractor for a business license, independent production and operation rights, financially independent accounting, then the contractor for the tax If the contractor applies for business license and has independent production and operation rights and financial independent accounting, the contractor shall be the taxpayer, and the income obtained from the services provided internally and externally shall be subject to business tax. Here there is a special situation, generally speaking, the so-called contractor for the taxpayer, not that the contractor for the taxpayer, but the entity that it organized the canteen for the taxpayer, the individual is generally only on wages and salaries income to pay personal income tax. However, if the individual contracted, the end of the change in the nature of the canteen, also the end of the business license, at the same time, the enterprise does not charge the individual contracting fees, but only regularly pay a certain amount of similar nature of the wages, and the individual is an employee of the enterprise, and the enterprise has an employment relationship, then the payment to the individual as a personal non-independent labor income, belongs to the nature of the wages and salaries, the individual only to pay personal income tax; if the If the individual and the enterprise does not have the nature of employment, then the income obtained by the individual independence of labor income, then the individual should pay business tax and personal income tax on their income, at the same time, the enterprise can not be payroll as the payment of personal expenses as the original evidence, but must be applied to the individual in the local tax department on behalf of the invoice as the payment of the original evidence of expenses.

What the contractor needs to pay attention to here is that even in the case where the contractor is the taxpayer, the contractor should report the contractor's situation to the tax department within 30 days from the date of leasing, or else the contractor will be held jointly and severally liable for the contractor's tax obligations according to the Implementing Rules of the Taxation Levy and Administration Law.

Enterprise self-managed

This situation staff canteen generally as a non-independent accounting unit of the enterprise, the canteen income and expenditure unified into the enterprise accounting. For this mode of operation, a very common viewpoint that the enterprise canteen to provide dining services for employees, whether or not the staff charges, its functions are different from the enterprise manufacturing and management departments, but with the enterprise infirmary, staff bathrooms, barber shop, kindergarten, nursery, as the same as the enterprise welfare sector, so the canteen costs incurred by the relevant costs, they should be Therefore, the related costs incurred by the cafeteria should be paid by the "employee welfare expenses", that is, accounting should not be treated as an enterprise's expenses; tax law, the cafeteria staff as a welfare department of the staff, shall not be included in the number of taxable wages for enterprise income tax, the cafeteria costs incurred shall not be deducted before tax. This view seems to be very reasonable, but in fact, neither the "Enterprise Accounting System" nor the tax law, there is no staff canteen costs must be paid from the "employee welfare expenses" requirements. Accounting, according to the "Enterprise Accounting System", "employee welfare expenses" are mainly used for employee health insurance and other medical costs, employees living in difficult conditions, employee bathrooms, barber shops, kindergartens, nurseries, such as salaries; tax law, the State Taxation [2000] No. 84 Enterprise Income Tax Deduction Methods clearly requires that from the employee welfare expenses and not in the pre-tax deduction. Welfare expenses and shall not be deducted before the tax only employees living in difficult circumstances, visiting expenses and infirmary, staff bathrooms, barber shop, kindergarten, nursery staff wages. From the above provisions, we can see that the staff canteen costs should be from the "employee welfare costs" of the point of view, whether in the accounting system or tax law, are not based on. Functionally, there is also a difference between a staff canteen and a welfare department such as an infirmary, a staff bathroom, a hairdressing room, a kindergarten, a nursery school, etc. As an enterprise far away from the city, it runs a cafeteria. As an enterprise far away from the urban area, it operates a staff canteen mainly to provide a strong guarantee for the normal production and operation of the enterprise, while the services of the other departments mentioned above are entirely a kind of welfare for the employees. Therefore, the author believes that the costs incurred by the staff canteen, including canteen staff wages, the purchase of food, vegetables and other costs, accounting should be charged from the "administrative expenses", and can be deducted from the pre-tax tax.

Whether the catering service provided by the canteen to the employees involves business tax? As a non-independent accounting department, the canteen in most cases only provides catering services for the employees, no matter whether it collects fees from the employees or not, it is not a profit-oriented business activity, but a kind of labor service provided within the enterprise. According to Cai Shui [2001] No. 160, "Notice on Clarifying the Relevant Issues of Article 11 of the Provisional Rules for the Implementation of the Provisional Regulations on Business Tax of the Chinese People's Republic of China", the labor services provided by the non-independent accounting units within the enterprise to each other do not constitute a tax obligation for business tax. Even if the staff to collect meals, but also only as a recovery of part of the cost of purchasing food, vegetables, etc., accounting should not be recognized as income, but should be deducted from the "administrative expenses". Of course, at this time, if the external services, such services is an economic activity of a profit-making nature, should be separately accounted for with the services provided internally, and apply to the local tax department on behalf of the opening of "catering" invoice, accounting for "other business income", while The accounting will be counted as "other business income", and the business tax will be paid and included in the taxable income of the enterprise to pay the enterprise income tax. Some places have also been clear in the relevant documents, such as Heilongjiang Province, in the Blackland Taxation [1996] No. 248, stipulates that: enterprises and public institutions, staff canteens collected staff dining income is not levied business tax, foreign catering income should be recorded separately to collect business tax, within and outside the division of income is not clear, all according to the service industry tax.

Enterprise-run canteens, some as self-management, self-financing, independent accounting units. In this case, the canteen should be a separate account, independent tax, and its services to the original enterprise, is no longer an internal non-independent accounting unit to provide services, and its charges, whether paid by the employees themselves or paid by the original enterprise, should be taxed. Therefore, from the point of view of tax cost, it is generally not desirable to treat the canteen as an independent accounting unit. However, some enterprises objectively need to set up independent accounting units in order to enhance the service grade and service quality of the canteen and improve the motivation of the canteen staff. In order to solve this kind of contradiction, enterprises can, according to the Circular of the Ministry of Finance and the State Administration of Taxation on the Re-employment of Laid-off Unemployed Persons on Re-employment Tax Policy Issues (Cai Shui [2005] No. 186) and the Circular of the State Administration of Taxation and the Ministry of Labor and Social Security on the Specific Implementing Opinions of Re-employment Tax Policy of Laid-off Unemployed Persons (Guoshuifa [2006] No. 8) and other preferential tax policies for re-employment of laid-off persons, adopt the main taxation policy to promote the re-employment of laid-off persons, and then set up independent accounting units. The preferential tax policies on promoting the re-employment of laid-off workers, through the separation of main and auxiliary industries and the restructuring of auxiliary industries, resettlement of a certain number of surplus personnel of the original enterprise, the establishment of clear property rights, the main body of the property rights of the gradual diversification of the independent accounting unit, recognized and audited by the relevant departments, can be rabbit levied on the income tax of the enterprise within three years, and through the absorption of a certain number of laid-off workers, to enjoy the preferential policies of a fixed amount of reduction of the business tax and the related surcharges for a period of three years.