Since the pilot of "VAT reform" was fully implemented on May 1st this year, the Ministry of Finance and State Taxation Administration of The People's Republic of China have adopted a "translation model" for most of the original preferential tax policies for business taxes, basically continuing the original preferential tax policies for business taxes, including some preferential tax policies related to people's livelihood.

encourage entrepreneurship and innovation: special groups are still tax-free

nowadays, encouraged by the policy of mass entrepreneurship and innovation, more and more demobilized military cadres, retired soldiers and their dependents have chosen to start their own businesses. As a military wife, Ms. Wang joined the army last year and opened a military wife restaurant with several fellow villagers.

after hearing the news of "increasing the business tax", Ms. Wang was a little worried about whether the previous business tax reduction and exemption policy could not be enjoyed. After learning about Ms. Wang's situation, the tax officers introduced to her that according to Annex 3 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [216] No.36), the taxable services provided by the dependents engaged in self-employed businesses are exempt from value-added tax for three years from the date of tax registration. If the pilot taxpayers have enjoyed the business tax preferential treatment in accordance with the relevant policies and regulations before being included in the "camp reform" pilot, they will enjoy the relevant value-added tax preferential treatment in accordance with these regulations within the period of the remaining preferential tax policies.

The tax official told Ms. Wang that after the "camp reform", not only the dependents of the army, but also the preferential policies of the state policy for special groups, such as registered unemployed people, retired soldiers, demobilized cadres, college graduates, etc., have been continued. As long as taxpayers meet the policies, they can apply to the IRS for filing and continue to enjoy the preferential policies. In the case of Ms. Wang, restaurants can still enjoy the tax relief policy until the expiration of three years after paying VAT instead.

standardize domestic service: employees can be exempted from tax

with the professionalization and multi-level development of the domestic service industry, the domestic service industry is gradually moving towards industrialization and standardization. At the same time, the state has also given strong support to the employee-based housekeeping industry and introduced relevant preferential policies to exempt business tax.

Then, after the "VAT reform", will the original preferential policies for business tax be continued? Recently, Mr. Zhou, the head of an employee-based housekeeping company, came to the tax bureau for consultation.

Tax official explained: According to the transitional policy, domestic service enterprises are exempt from value-added tax for their income from domestic service provided by employees. At present, the preferential tax policies for employee-based domestic service industry are still retained, and value-added tax can be exempted if the relevant conditions are met.

The tax official reminded Mr. Zhou that the employee-based domestic servant mentioned in the regulations must meet the following three conditions at the same time: 1. Sign a labor contract or service agreement with a domestic service enterprise for half a year or more according to law, and actually work in the enterprise. 2. The domestic service enterprise pays the social insurance such as basic old-age insurance, basic medical insurance, industrial injury insurance and unemployment insurance provided by the local people's government according to the national policy in full monthly. 3. The domestic service enterprise actually pays the salary not lower than the minimum wage standard approved by the provincial people's government applicable to the place where the enterprise is located through financial institutions. These conditions require domestic service enterprises to carry out standardized operation.

At the same time, the tax official also reminded Mr. Zhou that if the taxpayer has paid the business tax that should be exempted, it can be deducted from the taxpayer's future business tax payable. If the deduction cannot be completed before the implementation of the "reform of the domestic service industry", the tax refund can be applied.

supporting education and training: continuing to be tax-free in accordance with the regulations

Recently, Xu Accountant of a senior middle school called the tax authorities to ask whether all kinds of schools can continue to enjoy tax concessions after the "camp reform".

The tax official told Xu Accountant that the educational services provided by schools engaged in academic education are exempt from value-added tax according to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance (Caishui [216] No.36). The income from providing educational services exempt from value-added tax refers to the income from providing academic education services to registered students included in the prescribed enrollment plan, which specifically includes the income from tuition fees, accommodation fees, textbook fees, homework fees, examination registration fees, and food fees obtained from providing catering services in school canteens. Other income, including sponsorship fees and school selection fees charged by schools in various names, does not belong to the scope of exemption from VAT. In addition, ordinary taxpayers who provide non-academic education services can choose to apply the simple tax calculation method to calculate the tax payable at the rate of 3%.

in addition, during the pilot period of "camp reform", all the income obtained by the government-run higher, secondary and primary schools engaged in academic education (excluding subordinate units) from holding refresher courses and training courses is also exempt from value-added tax. "All owned by the school" means that all the income obtained from holding refresher courses and training courses enters the unified account of the school, and is included in the budget and turned over to the financial special account for management. At the same time, the school conducts unified management and issuance of relevant bills. If the income from holding advanced courses and training courses enters the accounts opened by the subordinate departments of the school, it will not be exempted from value-added tax.

preferential translation of "small and micro": special matters should be paid attention to

In recent years, the state's support for "small and micro" enterprises has gradually increased. After the "camp reform", the original preferential business tax policy has been basically continued for "small and micro" enterprises, but there are still different precautions that need the attention of taxpayers.

First, taxpayers who used to enjoy the preferential policy of "small and micro enterprises" in business tax can continue to enjoy the preferential policy of monthly sales not exceeding 3, yuan (paying 9, yuan quarterly) from May 1, 216 to December 31, 217 if they are identified as small-scale taxpayers; If you are recognized as a general taxpayer, you cannot enjoy the above preferential policies.

Second, for those who sell goods, process, repair and replacement services, sales services and intangible assets at the same time, they can enjoy preferential policies for "small and micro" enterprises respectively according to the current policies. According to "Announcement of State Taxation Administration of The People's Republic of China on Issues Concerning Tax Collection and Management in the Pilot Project of Changing Business Tax to Value-added Tax" (State Taxation Administration of The People's Republic of China Announcement No.23, 216), small-scale taxpayers of value-added tax shall separately account for sales of goods, sales of processing, repair and replacement services, sales of sales services and sales of intangible assets. Small-scale VAT taxpayers who sell goods, provide processing, repair and replacement services with monthly sales of no more than 3, yuan (paying 9, yuan quarterly) and sell services and intangible assets with monthly sales of no more than 3, yuan (paying 9, yuan quarterly) can enjoy the preferential policies of temporarily exempting small and micro enterprises from VAT from May 1, 216 to December 31, 217.

Personal transfer of housing: VAT exemption for two years

The housing problem has always been the top priority for the people. With the implementation of the "VAT reform" policy, the "VAT reform" of natural person second-hand housing transactions has also become a hot tax-related issue concerned by the people.

According to the tax official, according to the transitional policy, if an individual sells a house that has been purchased for less than 2 years, he will pay the value-added tax in full at the rate of 5%; Individuals who purchase houses for more than 2 years (including 2 years) for external sales shall be exempted from VAT. The above policies are applicable to areas outside Beijing, Shanghai, Guangzhou and Shenzhen. At the same time, according to the "Announcement of State Taxation Administration of The People's Republic of China on Issuing the Interim Measures for the Administration of Taxpayers' Transfer of Real Estate Value-added Tax" (State Taxation Administration of The People's Republic of China Announcement No.14, 216), the calculation formula is: prepaid tax = total price and extra-price expenses ÷(1+5%)×5%, because the tax-included part is excluded from its price.

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