Port communicationAudit methods for key corporate income tax issues of financial leasing companies (recommended useful information!) 1. Rental income - problem description：Enterprises provide intangible assets、Fixed assets such as housing equipment、Rental income from the right to use packaging，Failure to fully recognize revenue in accordance with the date and amount of rent payable by the lessee as stipulated in the contract。
like：The lease term specified in the transaction contract or agreement spans multiple years.，And the rent is paid in one lump sum in advance，Not calculated according to income and
cost
Proportioning principle，The relevant annual income will be included evenly in installments during the lease period.。
Focus on verification：Combine various lease contracts、protocol，"Other business income" account，Check whether there is a transaction contract or agreement that stipulates that the lease period spans multiple years.，And the rent is paid in one lump sum in advance，Not calculated according to income and
cost
Proportioning principle，The relevant annual income will be included evenly in installments during the lease period.。
Check account：Other business income and other policy basis：Article 19 of the Implementation Regulations of the Enterprise Income Tax Law；"Notice of the State Administration of Taxation on Several Tax Issues Concerning the Implementation of the Enterprise Income Tax Law"(National Tax Letter [2010] No. 79)Article 1 2. Interest income - problem description：A、Obtain interest income from debt investments，May include deposit interest、loan interest、bond interest、Various forms of income such as interest on arrears，The existence of the enterprise is not remembered、Undercounting of income or failure to recognize income in accordance with the date on which interest is payable by the debtor as stipulated in the contract。
B、Failure to accurately divide interest income from government bonds exempt from corporate income tax in accordance with tax laws，Pay less corporate income tax。Focus on verification：A、Is there any interest income arising from debts owed by other entities and individuals that has not been included in the total income in a timely manner?，Pay special attention to the loans and receivables of group members。B、"Investment income" account，Check whether there is any income from the transfer of government bonds mixed with interest income from government bonds，Pay less corporate income tax。
Check account：Current accounts and investment income、bank deposit、finance
cost
policy basis：Article 6 of the Enterprise Income Tax Law of the People's Republic of China (Order of the President of the People's Republic of China No. 63)、Article 18 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" 3. Other income - Description of the problem：Fines for failure to obtain business、late payment fee、Participate in property、No compensation benefits obtained from transportation insurance、Long-term payables that cannot be paid、Recover bad debt losses that have been written off in previous years，Fixed assets profit income，Additional rebate for education fees，and the debt restructuring proceeds reflected in the "Capital Reserve Fund"、Receiving donated assets and other income that should be recognized in the current period according to tax regulations are included in the total income。
Focus on verification：Check whether the above situation exists but no income is recorded。like：Check “bad debt provision”、"Asset Impairment Loss" account and corporate auxiliary ledger，Receivables recovered after confirmation of bad debt losses。Check the "non-operating income" account，Combined with long-term unpaid accounts payable such as warranty deposits，Confirm whether the payables that the enterprise cannot repay are recognized as income for the current period in accordance with tax laws.。
Check account：Current accounts and non-operating income、Bad debt loss、Capital reserve and other policy basis：Article 6 of the Enterprise Income Tax Law of the People's Republic of China (Order of the President of the People's Republic of China No. 63)、Article 17 of the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China 4 Dividends and Bonus Income - Description of the Problem：A、foreign investment，Dividends and bonuses are not included in the current account、Undercounting income。
B、The cost method or equity method is adopted for accounting. The difference between the investment income of long-term equity investments and the investment income recognized in accordance with the provisions of the tax law is not subject to tax adjustments in accordance with the provisions of the tax law.，Or only reduce the taxable income without making a corresponding increase。
C、Dividends will be subject to corporate income tax、Dividends and other equity investment income (such as：Received dividend income such as stock cash dividends and bonus shares for less than 12 months)，Mixed cropping is exempt from corporate income tax on dividends、Dividends and other equity investment income，Less corporate income tax。Focus on verification：A、Is there any external investment?，Are dividends and bonuses from investment income included in total income?。
B、Verifying long-term equity investments with corporate income tax returns、Investment income and other subjects，Verify whether the tax adjustment for the difference in long-term equity investment tax rates between the current year and previous years is correct.。
C、Check dividends receivable、Investment income and other subjects，According to the corporate income tax return and the investment agreement filed、Dividend certificate and other information，Verification of “Corporate Income Tax Exemption on Dividends”、Are “dividends and other equity investment income” eligible for exemption?，Whether income from stock dividends (including cash dividends and bonus shares) for less than 12 months is included in taxable income?。
Check account：Current accounts and dividends receivable、Investment income and other policy basis："Enterprise Income Tax Law of the People's Republic of China" (Order of the President of the People's Republic of China No. 63) Article 6 5. Business Income - Description of the Problem：Income is not real、integrity。
like：Selling goods at prices lower than normal wholesale prices in various main businesses、Related transactions related to provision of services；Put the realized income on the current account for a long time or simply leave it out of the account without recognizing the income.；Sales of goods by way of advance payment do not recognize revenue when goods are shipped as stipulated by tax laws.、Revenue from goods sold by installment payment is not recognized according to the payment date agreed in the contract.。
Focus on verification：sale of goods、Whether the taxable price of providing services is obviously low without justifiable reasons；sold in other businesses、scrapped、Handle fixed assets、Transfer material residual value, etc. (such as：Income from disposal of used packaging boxes) late or unaccounted income；And whether there are issues such as installment and advance sales methods instead of recognizing revenue in accordance with regulations.。
Audit methods：View internal assessment methods and related assessment data，and sales contract、sales receipt、bank statement、cash journal、Warehouse physical accounts and other related information，Combined with "main business income"、Comparative analysis and spot checks on "other business income" and current accounts，Check whether it is timely、Confirm taxable income in full。
Check account：Current accounts and main business income、Other business income、Fixed asset liquidation、raw materials、Inventory items、bank deposit、Cash etc.。
Policy basis：Article 6 of the Enterprise Income Tax Law of the People's Republic of China；Article 14 of the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China、Article 23；6.Deemed sales revenue - problem description：Non-monetary asset exchange occurs，and transport the goods、property、Labor is donated、debt repayment、sponsor、Raise funds、advertise、sample、Employee benefits or profit distribution、Sales and other changes in ownership and use of assets，Goods not deemed to be sold in accordance with tax laws、Recognition of income from transfer of property or provision of services。
Focus on verification：Related contracts and settlement documents，Check production costs、manage
cost
、Sale
cost
Other subjects，Verify whether there is any illegal sales behavior，Confirm whether there are undeclared income from deemed sales, etc.。
Check account：Inventory items、Other business costs、Non-operating expenses、manage
cost
、Sale
cost
、Welfare fees payable、Dividends payable and other policy basis：Article 25 of the Implementation Regulations of the Enterprise Income Tax Law 7. Surplus of non-cash assets - Description of the problem：The company's non-cash asset surplus (such as fixed asset surplus)，Failure to recognize income in accordance with tax laws，Failure to recognize income at the full replacement value of similar assets in accordance with tax laws。
Focus on verification：Whether the fixed assets that are in surplus are based on the market price of the same or similar fixed assets，The balance after deducting the estimated loss of value based on the condition of the asset，as entry value。If there is no market price of the same or similar fixed assets，Is it based on the present value of the estimated future cash flows of the fixed asset?，as entry value。
Check account：Fixed assets and other policy basis：Article 22 of the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China (Order No. 512 of the State Council of the People's Republic of China)、Article 58 8. Debt restructuring—problem description：A、The amount of income from debt restructuring using non-cash assets to offset debts is relatively large，Failure to recognize income in installments in accordance with tax laws (income from debt restructuring incurred by taxpayers in a tax year)，Accounting for 50% or more of taxable income，Only then can it be evenly included in the taxable income of each year within a period of no more than 5 years)。
B、Corporate equity acquisition、Asset acquisition and restructuring，The acquirer's tax basis for acquiring equity or assets is not determined based on fair value.。C、The tax treatment of corporate reorganization does not differentiate between different conditions. General tax treatment regulations and special tax treatment regulations are applicable respectively.。D、Corporate equity acquisition、Asset acquisition and restructuring，The acquiree failed to recognize the equity at fair value in accordance with tax laws.、Gains or losses from asset transfers。
Focus on verification："Long-term equity investment"、"Fixed assets"、"Non-operating income" and other subjects，Check the tax basis and book value of relevant restructured assets，Verify the business’s restructuring agreement，Pay attention to whether there is a filing approval for special restructuring，Recognize restructuring income based on enterprise-related restructuring agreement rulings and other documents，At the same time, check whether projects with large amounts of non-cash assets to offset debts are recognized in installments.。
Check account：long term equity investment、fixed assets、Non-operating income、Non-operating expenses and other policy basis："Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning the Treatment of Corporate Income Tax on Enterprise Reorganization Business"(Finance and Taxation [2009] No. 59)9.Adjustment of profit and loss in previous years - problem description：Adjustments to profit and loss in previous years，Failure to make tax adjustments as required。
Focus on verification：Previous year profit and loss adjustments combined with corporate income tax returns，"Profit and loss adjustment for previous years" account，Verify whether tax adjustments have been made to profits and losses in previous years。
Check account：Policy basis for profit and loss adjustment in previous years："Enterprise Income Tax Law of the People's Republic of China"、"Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" Expenditures of Enterprise Income Tax：10.Expenditures unrelated to production and operations - problem description：Related enterprise costs、Personal expenses related to investor or employee life、Retirement benefits、External guarantee
cost
Costs unrelated to production and operations
cost
，and various types of payment on behalf of others(Withholding and payment of personal income tax、(Consigned processing and payment of freight, etc.) are deducted before tax.，No tax adjustments have been made。
Focus on verification："Production costs"、"manage
cost
-communication fee、transportation expenses、Guarantee fee、Welfare fees” and other related costs
cost
Account，Verify whether there are any expenditures that have nothing to do with production and operations and are listed before tax。
Check account：Production costs and other costs
cost
Subject policy basis：Article 8 of the "Enterprise Income Tax Law of the People's Republic of China" No. 63 of the President of the People's Republic of China、Article 10
- Article 27, Paragraph 1 of the Item and its Implementing Regulations、Article 40、Notice of the State Administration of Taxation on the Deduction of Wages, Salaries and Employee Welfare Fees(National tax letter[2009]3Number)、Opinions of the State Administration of Taxation on Strengthening Enterprise Income Tax Administration(National taxation department[2008]88Number)
- Other items that are not allowed to be included in the list - problem description：List the eight categories of items that are not deductible according to Article 10 of the Enterprise Income Tax Law (dividends and other equity investment income payments paid to investors).、corporate income tax、tax late payment fees、Fines, fines and damage to confiscated property、Donation expenditures other than those specified in Article 9、Sponsorship expenditure、Unapproved reserve expenditures、Other expenses not related to income)，No increase in taxable income。
Focus on verification：Non-operating expenses、Sale
cost
、manage
cost
、Sale
cost
Other subjects,Check whether tax adjustments have been made to the eight categories of items that have been included in profits and losses，Focus on verifying various reserves、Sponsorship expenditure、Other expenses not related to earning income。
Check account：Non-operating expenses、Sale
cost
、manage
cost
、Sale
cost
policy basis："Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China" (Order No. 513 of the State Council of the People's Republic of China) Article 43 12. Profit expenditures and capital expenditures - Description of the problem：costs incurred
cost
Expenditure does not correctly differentiate between revenue expenditure and capital expenditure。
like：Project costs borne by non-sale-for-use products such as projects under construction，Squeeze into "main business costs"，And reduce the main business profit；Large equipment is being built and produced at the same time,The financing of construction funds and operating funds is unclear,result should be capitalized with
cost
loan
cost
Inaccurate division；The purchased materials that should be managed as fixed assets are recorded as low-value consumables and deducted once before income tax.；Failure to calculate pre-tax deductions for intangible assets as required，The intangible assets acquired are directly deducted as profit and loss expenses before tax.；Transportation costs that should be included in the original value of fixed assets、insurance、Installation and commissioning fees are included in the cost、
cost
Zhonglie branch；Failure to amortize eligible fixed asset overhaul expenses, etc.。
Focus on verification：Details of subjects such as "Projects under Construction"，Check whether there are any expenditures that should be capitalized but have not been included in the corresponding accounts.；During the verification
cost
Are there any fixed assets directly listed as expenses?、intangible assets、Fixed asset overhaul expenses。
Check account：
cost
Accounts and fixed assets、intangible assets、Construction in progress、Low-value consumables and other policy basis：Article 28 of the Implementation Regulations of the Enterprise Income Tax Law 13. Various types of withholdings、Prepare to Spend - Problem Description：Expenditures have been deducted before corporate income tax，There are various types of accrued preparation expenditures that have not actually occurred (such as：Withholding
cost
；Asset impairment provision；guarantee、pending litigation、Estimated liabilities arising from restructuring the business)，No tax adjustments have been made。
Focus on verification：Is there any withholding?
cost
、Whether to make tax adjustments when withdrawing reserves, etc.；Pay special attention if there is a guarantee、pending litigation、Restructure business，Check whether there are estimated liabilities for "non-operating expenses"。
Check account：manage
cost
、Non-operating expenses、Withholding
cost
、Estimated liabilities、Asset impairment loss、Various reserve accounts and other policy basis："Enterprise Income Tax Law of the People's Republic of China"(Order No. 63 of the President of the People's Republic of China)Article 10；"Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China"(Order No. 512 of the State Council of the People's Republic of China)Article 27、Article 55 14. Wage and salary expenditures—problem description：The wages and salaries incurred do not comply with the payment objects stipulated in the tax law.、Specify scope and confirm principles，No increase in taxable income。
like：A、Salary payment list personnel include：Received pension insurance benefits、Unemployment benefits for retired employees、laid-off workers、Waiting staff；Medical offices that should be deducted from employee welfare fees、Staff bathroom、barber shop、kindergarten、nursery staff；Management service personnel of rental properties whose houses have been sold or whose rental income is included in the housing transfer fee；Former employees of the enterprise who have terminated the labor contract relationship with the enterprise；Although the labor contract relationship with the enterprise has not been terminated，But the company does not pay basic wages、living expenses personnel，employee benefits、Employees whose wages are paid such as labor insurance premiums；Other personnel without labor personnel relations or labor dispatch relations。
B、Wage methods do not all comply with the following
Require
：Developed a relatively standardized employee salary and salary system;Whether the wage and salary system formulated by the enterprise complies with industry and regional standards;Are the wages and salaries paid by the company in a certain period relatively fixed?，Adjustments to wages and salaries are carried out in an orderly manner;The enterprise has fulfilled its obligation to withhold and pay personal income tax on the actual wages and salaries paid in accordance with the law.;Arrangements on wages and salaries，Not for the purpose of reducing or evading taxes。
C、Due to the accrual basis of accounting, employee benefits payable are recognized but will be paid in subsequent periods.，but not actually issued (including：Last year’s salary has been withdrawn but not paid，Equity incentive plan waiting period
cost
，Reorganization plan, termination benefits, etc.)。
D、The content of employee welfare expenses shall be calculated as wages and salaries expenses before tax (such as：implement monetization reforms，Housing and transportation subsidies based on standard，Accounting as a subsidy included in total salary management，But corporate income tax should be treated as welfare fees，not as salary。Enterprises are at risk of not making tax adjustments)。
E、State-owned enterprises，Whether the total amount of wages and salaries exceeds the limit set by the relevant government departments，Whether the excess amount will be subject to tax adjustment according to tax laws。F、As an employer, the enterprise has paid the dispatch company
cost
，The wages of dispatched workers are still deducted before tax、social insurance premiums、Housing provident fund and employee welfare fees based on wages、Staff education funds、Union funds, etc.。
Focus on verification：A、Whether the persons on the salary payment list are employees working or employed by the enterprise (should not include：Received pension insurance benefits、Unemployment benefits for retired employees、laid-off workers、Waiting staff；Medical offices that should be deducted from employee welfare fees、Staff bathroom、barber shop、kindergarten、nursery staff；Management service personnel of rental properties whose houses have been sold or whose rental income is included in the housing transfer fee；Former employees of the enterprise who have terminated the labor contract relationship with the enterprise；Although the labor contract relationship with the enterprise has not been terminated，But the company does not pay basic wages、living expenses personnel，employee benefits、Employees whose wages are paid such as labor insurance premiums；Other personnel without labor personnel relations or labor dispatch relations。
B、Whether the company has formulated a relatively standardized employee salary and salary system;Whether the wage and salary system formulated by the enterprise complies with industry and regional standards;Are the wages and salaries paid by the company in a certain period relatively fixed?，Adjustments to wages and salaries are carried out in an orderly manner;Whether the enterprise has fulfilled its obligation to withhold and pay personal income tax on the actual wages and salaries paid in accordance with the law;Whether the salary arrangements are not for the purpose of reducing or evading taxes。
C、Due to the accrual basis of accounting, employee benefits payable are recognized but will be paid in subsequent periods.，but not actually issued (including：Last year’s salary has been withdrawn but not paid，Equity incentive plan waiting period
cost
，Reorganization plan, dismissal benefits, etc.) whether to increase the taxable income for the current period。
D、Whether the content of the employee welfare fee calculation is included as wages and salaries expenses before tax;Verification of state-owned enterprises，Whether the total amount of wages and salaries exceeds the limit set by the relevant government departments，Whether the excess amount will be subject to tax adjustment according to tax laws。
Check account：
cost
Subjects and employee benefits payable、Welfare fees payable and other policy basis："Notice of the State Administration of Taxation on the Deduction of Enterprise Wages, Salaries and Employee Welfare Fees" (Guo Shui Han [2009] No. 3) 15. Three expenditures - Description of the problem：Employee welfare expenses incurred、Staff education funds、Union fund expenditures do not comply with the payment objects stipulated in tax laws、stipulated scope、Confirmation principles and expenditure limits, etc.，No increase in taxable income。
like：There is no "Special Receipt for Union Fund Income" or it is legal、Valid receipts for collection of trade union funds to list trade union funds；employee benefits、Employee education and labor union expenses are directly recorded in costs
cost
Accounts (for example, welfare facilities such as employee canteens and related expenses will be included in management
cost
) No tax adjustment will be made；Provided but not actually incurred，Or actual employee welfare expenses、Union funds、Employee education funds exceed the expenditure limit (14% of taxable wages)、2％、2.5%) No tax adjustment；The proportion has not been reached this year，The excess employee welfare fees from the previous year will be、Key verifications such as trade union fund carryover accounting：Verify three items
cost
Extraction and usage，Check whether there are any illegal confusions or excessive expenditures that have not been adjusted to increase the taxable income.。
Whether separate account books are set up for employee welfare fees and whether they are accurately accounted for in accordance with the items stipulated in the tax law；Pay special attention to whether tax adjustments should be made for employee benefits that have been accrued but not incurred.。
Check account：
cost
Subjects and employee benefits payable、Welfare fees payable and other policy basis："Notice of the State Administration of Taxation on the Deduction of Enterprise Wages, Salaries and Employee Welfare Fees" (Guo Shui Han [2009] No. 3) 16. Various types of insurance、Provident Fund - Problem Description：A、Basic pension insurance premiums paid for employees、Basic medical insurance premium、unemployment insurance premiums、Work injury insurance premium、Basic social insurance premiums such as maternity insurance premiums and housing provident funds，Pre-tax deductions shall be made in accordance with the scope and standards stipulated by the relevant competent departments of the State Council or the provincial people's government (if the housing provident fund withdrawal ratio exceeds 12% without the approval of the housing provident fund management department)，The excess amount has not been adjusted to increase the taxable income。
B、Supplementary pension insurance premiums paid for all employees who work or are employed by the enterprise、supplementary medical insurance，The amount of taxable income exceeding 5% of the total employee wages is not increased separately。
C、In addition to the personal safety insurance premiums paid for employees in special types of work in accordance with relevant national regulations and the State Council’s financial、In addition to other commercial insurance premiums that can be deducted as prescribed by the tax authorities，Commercial insurance premiums paid for investors or employees，No deduction is allowed without complying with tax laws，The taxable income for the current period has not been adjusted。
Focus on verification：Combined with relevant competent department and local government documents、Various insurance contracts，Verify book accrual and distribution status，Key verification exceeds scope、Expenses exceeding the limit and various types of insurance premiums that have been accrued but not turned over、provident fund，No tax adjustment has been made。
Check account：
cost
Subjects and employee compensation payable—employee benefits and other policy basis：Article 35 of the "Regulations on the Implementation of the Enterprise Income Tax Law" 17. Interest Expenses - Description of the Problem：Interest paid over the limit，like：The interest expense incurred by an enterprise on borrowing from individual employees or non-financial enterprises exceeds the amount calculated based on the interest rate of similar loans of financial enterprises during the same period.，No increase in taxable income；Interest expenses actually paid by the enterprise to domestic related parties，Exceeds the ratio of debt investment and equity investment stipulated in the tax law (5 for financial enterprises)：1，2 for other companies：1) part，If it cannot be proved that the relevant transaction activities comply with the principle of arm's length or the actual tax burden of the enterprise is not higher than that of domestic related parties,，The taxable income of the relevant year is not correspondingly increased when the enterprise declares deductions。
Focus on verification：Corporate loan source structure，Check whether there are personal loans of employees, whether they are borrowed from non-financial institutions and related contracts；Verify corporate related loan contracts，Check whether there is any interest that exceeds the debt-to-equity ratio calculated under tax laws，If there is an excess，Further check whether the company has relevant evidence to prove that the transaction complies with the arm's length principle.，And the actual tax burden of the enterprise and related parties, etc.。
Check account：Other payables、finance
cost
policy basis：Article 38 of the Implementation Regulations of the Enterprise Income Tax Law、"Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policy Issues Concerning the Pre-tax Deduction Standards for Interest Expenditures of Related Parties" (Caishui [2008] No. 121) 18. Leasing
cost
——Problem description：lease
cost
Pre-tax expense reporting error，like：No distinction is made between finance leases and operating leases，Or a one-time payment of housing equipment rental fees，No tax adjustments have been made。
Focus on verification：Combined with various lease contracts of the enterprise，Distinguish between operating leases and finance leases，Combined with construction in progress、finance
cost
、Financing not confirmed
cost
、manage
cost
-rent、manufacture
cost
-Rent and other subjects，Check whether the rental is collected correctly
cost
Whether tax adjustments should be made：A、Lease expenses incurred when renting fixed assets under operating leases，Deducted evenly according to the lease term。
B、Lease expenses incurred when leasing fixed assets in the form of finance lease，The part that constitutes the value of fixed assets leased under financing in accordance with regulations，Depreciation should be taken
cost
Installment deduction。
Check account：Cost Accounts and Finance
cost
、manage
cost
、Sale
cost
policy basis：Article 44 of the "Regulations on the Implementation of the Enterprise Income Tax Law" 19. Business entertainment expenses - Description of the problem：The business entertainment expenses incurred in connection with production and business activities are not correctly collected in the corporate income tax return (the non-collection is included in the travel expenses)、office expenses、Conference fees and others
cost
business entertainment expenses)，Failure to declare in accordance with pre-tax deduction standards (not exceeding 60% of the amount incurred and not exceeding five thousandths of the current year’s sales operating income)，The excess amount of taxable income has not been increased。
Focus on verification：The nature of business entertainment incurred in cost accounts
cost
，Combined management
cost
-other、Sale
cost
-Detailed accounts of other subjects，Collect and calculate the actual amount of business entertainment expenses，Check whether the declared amount is correct and whether the amount exceeds the limit。
Check account：Cost accounts and management
cost
、Sale
cost
policy basis：Article 43 of the "Regulations on the Implementation of the Enterprise Income Tax Law" 20. Advertising expenses and business promotion expenses - Description of the problem：A、The advertising fees and business promotion fees incurred do not meet the conditions stipulated in the tax law [i.e. the advertisements are produced through specialized agencies approved by the industrial and commercial authorities;actually paid
cost
，And have obtained the corresponding invoice;Disseminated through certain media]，No tax adjustments have been made。
B、Advertising expenses and business promotion expenses incurred are not accurately collected，Include advertising expenses and business promotion expenses into other
cost
Accounts may include non-advertising expenses and business promotion expenses mistakenly included in advertising expenses and business promotion expenses.，No corresponding adjustment to taxable income。
C、Eligible advertising and business promotion expenses incurred during the year，Exceeding current year sales [business)15% of income (except for the State Council Finance、Unless otherwise specified by the tax authorities)，The excess amount has not been adjusted to increase the taxable income for the current year.。
Focus on verification：Sale
cost
Detailed account，Check whether advertising expenditures meet the conditions stipulated in tax laws；Check the company’s advertising and payment methods，paid
cost
Which detailed accounts are used to calculate whether the collection is correct?；Verify whether the total amount of eligible advertising and business promotion expenses after aggregation does not exceed 15% of the sales (operating) income of the year and declare the deduction。
Check account：Sale
cost
、manage
cost
policy basis："Notice of the Ministry of Finance and the State Administration of Taxation on the Pre-tax Deduction Policy for Advertising and Business Promotion Expenses" (Caishui [2012] No. 48) Article 3 21. Handling fees and commission expenses - those with risk issues will be included in the rebates、Business commission、rebate、Entrance fees and others
cost
Subject，Failure to calculate correctly。
B、Exceeding the proportion stipulated by tax law (property insurance 15%、Personal insurance 10%、The handling fees and commission expenses of other enterprises (5%) have not been adjusted to increase the taxable income in accordance with the provisions of tax laws.。C、Handling fees and commission expenses that cannot be deducted before tax according to tax laws (such as：Expenses incurred without signing an agency agreement or contract with an intermediary service enterprise or individual with legal business qualifications；Cash payments to non-individuals；Not related to earning income)，No increase in taxable income。
Focus on verification："Sale
cost
"Subjects such as，Check whether handling fees and commission expenses are correctly calculated；Are there any handling fees and commissions that exceed the limit or are not expensed before tax?，Failure to increase taxable income。
Check account：Sale
cost
policy basis："Notice of the Ministry of Finance and the State Administration of Taxation on Pre-tax Deduction Policies for Enterprise Fees and Commission Expenses" (Caishui [2009] No. 29) Article 5 22. Pre-tax deductions for property losses - Description of the problem：In the deduction procedure、Declaration method、Confirmation time、Property losses that do not meet the regulations in terms of accounting amount and other aspects will be expensed before tax.，No tax adjustments have been made。
like：The loss has not been declared or the declaration method is wrong (it should be declared in a special way and a list declaration should be made, etc.)；Deductions reported for the year that have not actually occurred and have been treated as losses in accounting；Income without residual value、Responsible person compensation and insurance compensation。Focus on verification：Verify whether the losses listed by the company are true，Is the accounting accurate?，Focus on checking whether the prescribed procedures and
Require
Report to the competent tax authority。
Check account：accounts receivable、Other receivables、Inventory items、raw materials、fixed assets、Construction in progress、productive biological assets、intangible assets、long term equity investment、trading financial assets、held-to-maturity investments、available-for-sale financial assets、Fixed asset liquidation、Non-operating expenses and other policy basis：Article 32 of the Implementation Regulations of the Enterprise Income Tax Law、"Administrative Measures for Pre-tax Deduction of Income Tax on Enterprise Asset Losses" State Administration of Taxation Announcement No. 25, 2011 23. Related Party Transaction Expenses - Description of the Problem：A、Management fees paid between related enterprises are expensed before tax，No tax adjustments have been made。
B、Rent paid between business offices within the enterprise such as the head office and branch offices、royalties、Interest is deducted before tax，The corresponding income is posted in the current account。C、Fuel purchases and sales between parent and subsidiary companies and other related companies、Equity transfer、Equipment procurement、loan agreement、Business transactions such as raw material transportation and labor services，Do not charge or pay prices based on business transactions between independent enterprises、
cost
And reduce the taxable income，No tax adjustments have been made。
Focus on verification：A、Focus on audit management
cost
、finance
cost
、Non-operating expenses and other subjects，Check whether there are any violations in pre-tax management fees paid between related enterprises、Rent and royalties paid between various business offices of a legal person enterprise，and interest paid between business units within non-bank enterprises。
B、Focus on reviewing the current accounts of related party transactions，Check whether there are any fuel purchases and sales with related companies、Equity transfer、Equipment procurement、loan agreement、Business transactions such as raw material transportation and labor services，Do not charge or pay prices based on business transactions between independent enterprises、
cost
situation。
Check account：Current accounts and management
cost
、finance
cost
、Non-operating expenses and other policy basis：Article 49 24 of the Implementation Regulations of the Enterprise Income Tax Law. Enterprise Reorganization—Problem Description：Corporate debt restructuring、Equity acquisition、Asset acquisition、merge、Spin-off and other restructuring transactions，And meet the special treatment conditions stipulated in the tax law，The parties to the restructuring transaction did not recognize the corresponding asset transfer income or loss in the current transaction period for the non-equity payments in the transaction.，and adjust the tax basis of the corresponding assets.。
Focus on verification：corporate restructuring contract，Check whether it meets the conditions for special reorganization，Check whether the corresponding income or loss from asset transfer is confirmed for the non-equity payment amount in the transaction.：long term equity investment、Investment income and other policy basis："Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning the Treatment of Corporate Income Tax on Enterprise Reorganization Business"(Finance and Taxation [2009] No. 59)25.Depreciation and Amortization - Problem Description：Failure to expand fixed assets on your own in compliance with tax laws、Taxable value of intangible assets (if long-term provisional estimation exceeds 12 months)；Failure to carry out depreciation and amortization in accordance with the scope and methods stipulated in the tax law (such as expanding the scope of pre-tax deductions for depreciation and amortization)，Deduct depreciation of unused machinery and equipment and other depreciation and amortization not related to production and operation；Deduction of depreciation that has been withdrawn for more than 5 years or has not been verified and approved by the tax authorities；Deducting the depreciation provided for the increase in asset valuation resulting from the share transformation；Deduction of non-qualified accelerated depreciation and amortization；No tax adjustments are made using comprehensive ratios (depreciation and amortization), etc.。
Focus on verification：Verify asset valuation，like：By checking the purchase contract、bill、insurance policy、Waybill and other documents，Check whether the original book value of purchased fixed assets is correct；Check whether the depreciation and amortization accounting methods and calculation amounts comply with tax law regulations。
Check account：manage
cost
、Construction in progress、Fixed assets and other policy basis：Article 56 of the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China (Order No. 512 of the State Council of the People's Republic of China)、Article 57、Article 58
About Hong Kong Xintong
Hong Kong Xintong focuses onGuangdong and Hong Kong license plates、Shenzhen Hazardous Chemicals Business License、Shenzhen labor dispatch licenseandShenzhen Charity Foundationapplication services，Assist customers to applyShenzhen travel agency business license、Shenzhen pawn shop business license、Shenzhen auction house license and other mainstream domestic financial licenses，Support enterprises to achieve compliance expansion of cross-border financial business。Also availableODI overseas investment registration、International travel agency registration and other services，Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more，Please contactHong Kong Information Communications Consultant。
