Gift Related Tax Issues: Help You Easily Settle Your Financial Accounts.

Generally speaking, there are three kinds of taxes on value-added tax, income tax and personal income tax. However, I think we should also pay attention to the categories and uses of gifts. It is a one-time consumption of gifts (such as tobacco and tea, etc.), or other gifts (such as handicrafts or other non expendable goods), which are used for social intercourse, or for promotional purposes.

Gifts for any category or purpose should be regarded as sales VAT.

Its policy basis is:

The fourth rules and eighth paragraphs of the detailed rules for the implementation of the Provisional Regulations on value added tax shall be deemed to be the same as the sale of goods.

For the price deemed to be sold, the rules already stipulate that if the enterprise does not have the same commodity price for the same period, the output tax should be calculated according to the composition tax price.

Composition tax price = outgoing cost X (1+ cost profit margin)

The cost profit rate is 10% except for taxable consumer goods in accordance with the explicit proportion of the General Administration of taxation.

There are many opinions on whether the purchase of the gift can be deducted. I believe that the deduction should be based on the purpose of the gift and the principle of value added tax.

The tenth provision of the Provisional Regulations on value added tax stipulates that the amount of input tax for goods purchased for non VAT taxable items, exempt from value-added tax, collective welfare or personal consumption shall not be deducted from the amount of output tax.

At the same time, the twenty-second detailed rules for the implementation of the Provisional Regulations on VAT are: tenth of the regulations.

For the above provisions, we can see that

Personal consumption and social interaction gifts can not be deducted, which can be verified from the design principle of value-added tax, because the chain of value-added tax is interrupted.

However, gifts for promotional purposes should be deductible.

The issue of gift giving is clear in the handling of corporate income tax.

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The twenty-fifth provision of the implementing regulations clearly stipulates that "the exchange of non monetary assets in enterprises, and the use of goods, property and labor in donation, debt repayment, sponsorship, fund-raising, advertising, samples, employee welfare or profit distribution shall be regarded as selling goods, pferring property or providing labor services".

Gifts belong to non monetary assets. At the same time, gifts are generally not produced by enterprises, but need to be purchased from the market according to market price, and then used for donation. Therefore, they conform to the requirements of sales.

However, the income tax is regarded as the same as the sales price and the value of the sales tax is different from that of the sales tax. The third article of the circular on the disposition of the assets income tax of enterprises (the tax Letter No. 2008] No. third) indicates that "the assets belonging to the purchase can be determined according to the price at the time of purchase."

Therefore, there is no income from the pfer of assets in income tax.

Other gifts other than the one-time consumption of goods, if the enterprise can attach the LOGO of the enterprise, can be treated as a publicity fee, thereby increasing the proportion of pre tax deduction.

According to the Ministry of finance, the State Administration of Taxation on the promotion of enterprise exhibition gifts.

The second provision of the notice of question (Finance and tax [2011]50) stipulates that individuals giving gifts to individuals should pay personal income tax according to law, and the tax shall be withheld by enterprises giving gifts. All the individuals here are individuals other than the unit.

However, in practice, it is difficult to withhold and pay personal income tax, which can only be undertaken by enterprises, so it can not be deducted before calculating enterprise income tax.

For more information, please pay attention to the world clothing shoes and hats net report.