Kunming company registration: 72 key points of tax audit

General outline of the key inspection objects of the State Administration of Taxation in 2016

I. Value-added tax

(1) Input tax

1. Whether the VAT invoices used to offset input tax are real and legal: whether there are invoices used for offsetting in which the invoicing unit is not the same as the receiving unit, or whether there are invoices that are inconsistent between the goods recorded on the face of the invoices and the goods actually put into the warehouse.

2. Whether the transportation invoices used for offsetting input tax are true and legal: whether there are freight charges for non-VAT taxable items, VAT-exempted items, collective welfare and personal consumption, abnormal loss of goods (services), abnormal loss of in-process products and finished products consumed for offsetting input tax; whether there are freight charges declared as having nothing to do with the purchase and sale of goods; whether there are freight charges for offsetting input tax; whether there are freight charges declared as having nothing to do with the purchase and sale of goods; and whether there are freight charges for offsetting input tax; and whether there are freight charges declared as having no relationship with the purchase and sale of goods. Offsetting of input tax; whether there is offsetting of inputs by invoices of international freight forwarding agency industry and international freight forwarding invoices; whether there is offsetting of inputs by transportation invoices whose billing party is not the same as the carrier; whether there is offsetting of input tax by transportation invoices with incomplete filling of items.

3. Whether there is a failure to comply with the provisions of the unified invoice for the purchase of agricultural products to declare offsetting input tax. Specifically include: expanding the scope of agricultural products, non-tax-exempt agricultural products (such as square logs, sleepers, road logs, sawn timber, etc.) issued as tax-exempt agricultural products (such as logs); false opening of the unified invoice for the purchase of agricultural products (false opening of the number, unit price, offsetting tax).

4. Whether the invoice for waste materials used to offset input tax is real and legal.

5. Whether the customs import VAT payment book used for offsetting input tax is real and legal; whether the variety and quantity of imported goods match with the actual production.

6. Whether the return of goods or sales discounts are made in accordance with the provisions of the transfer of input tax.

7. Whether the purchased goods (services) used for non-VAT taxable projects, VAT-exempt projects, collective welfare and personal consumption, abnormal loss of goods (services), abnormal loss of products in process, finished products consumed in accordance with the provisions of the transfer of input tax.

8. Whether there is a rebate to other accounts payable, other receivables and other current accounts or offset operating expenses, but not for input tax transfer.

(ii) output tax

1. sales revenue is complete and timely accounting: whether there is a barter, goods against debt income not recorded income; whether there is the sale of products without invoicing, the income obtained is not recorded in accordance with the provisions of the situation; whether there is a long period of time the sales revenue is recorded without transferring income; whether to charge foreign units or individuals water, electricity, steam and other costs, do not count, Undercounting of income or offsetting expenses; whether the sales money should be collected, first pay the expenses (such as the buyer's rebates, promotional awards, operating expenses, commissioned to sell goods handling fees, etc.), and then the remaining balance of the account as income.

2. Whether there are cases of deemed sales behavior and failure to accrue output tax in accordance with the regulations: using self-produced or commissioned-processed goods for non-VAT taxable items, collective welfare or personal consumption, such as for internal canteens, hotels, hospitals, childcare centers, schools, clubs, family communities, etc., and not accruing or under-accruing the taxable income; using self-produced, commissioned-processed or purchased goods for investment, distribution, gratuitous donations, gifts and changing the use of purchased materials for external sales, etc., do not count or undercount taxable income.

3. Whether there are cases of issuing red-letter invoices that do not comply with the regulations to offset taxable income: whether the red-letter invoices issued and the accounting treatment are in accordance with the provisions of the tax law in the event of sales returns and sales discounts.

4. Whether all kinds of out-of-priced charges (such as handling fees, subsidies, fund-raising fees, return of profits, incentives, liquidated damages, transportation and handling costs, etc.) charged to the purchaser are taxed according to the regulations.

5. Taxpayers with more than two organizations and unified accounting, the goods from one organization to other organizations (not in the same county or city) for sale, whether the sales treatment.

6. Whether overdue deposits on overdue packages are subject to sales tax.

7. Whether business with items subject to value-added tax (VAT) is subject to business tax.

8. Whether mixed sales of VAT are taxed according to the law: whether the acts which should be regarded as sales and taxed according to the VAT law are taxed according to the regulations; whether the units and individuals engaging in the business of transportation of goods pay VAT according to the regulations if they engage in the mixed sales of goods and are responsible for the transportation of the goods sold.

9. Whether taxpayers engaging in non-VAT taxable items are required to account for the sales of goods or taxable services and non-VAT taxable items separately; and whether they pay VAT according to the sales of goods or taxable services approved by the competent tax authorities if they do not account for the sales or are unable to account for the sales accurately.

10. Whether the behavior of purchasing goods on behalf of others and importing goods on behalf of others, which are subject to VAT in accordance with the provisions of the VAT Tax Law, is subject to VAT.

11. Whether the tax-exempted goods are accounted for in accordance with the law: whether the goods or taxable services exempted from VAT by VAT taxpayers are in compliance with the relevant provisions of the Tax Law; whether there is any unauthorized expansion of the scope of exemption; whether the calculation of the exempted amount of tax and the non-deductible input tax is accurate for the VAT taxpayers who are also engaged in tax-exempted projects.

Second, enterprise income tax

Whether all taxable income is taxed in accordance with the provisions of the tax law, and whether all costs and expenses are expended in accordance with the provisions of the pre-tax deduction method for income tax. Specific items should cover at least the following issues:

(I) Income

1. Whether the value-added of enterprise assets appraisal is incorporated into taxable income.

2. Whether the income obtained by an enterprise from an overseas investee enterprise is consolidated into the current taxable income tax.

3. Whether the income derived from the sale of non-circulating shares (restricted shares) of a listed company after the lifting of the prohibition is recognized as taxable income.

4. Whether there is a problem of not recognizing various incomes obtained by an enterprise on an accrual basis for tax purposes.

5. Whether there is the use of current accounts, intermediate accounts such as "withholding costs" to delay the realization of taxable income or adjust the profit of the enterprise; whether the income received from the licensed production, trademark royalties, etc. is included in taxable income.

6. Whether gains on non-monetary assets are recognized as taxable income.

7. Whether there are deemed sales without tax adjustment.

8. Whether there are various exemptions from turnover tax and various subsidies and government incentives received, which are not included in taxable income according to the regulations.

9. Whether there is the acceptance of donations of monetary and non-monetary assets, not included in taxable income.

10. Whether there is investment income distributed back by the enterprise, which has not been paid back to the enterprise income tax according to the difference in regional tax rates.

(2) Costs and expenses

1. Whether there is the use of false invoices or false labor costs and other inflated costs.

2. Whether there is the use of invoices and vouchers that do not comply with the provisions of the tax law, the cost of expenses.

3. Whether there is no charge for the "rebate" behavior, such as accepting invoices for reimbursement of distribution units other than the enterprise in the form of monetary rebates and in the cost of the charge.

4. Whether or not there is no charge should be borne by other taxpayers.

5. Whether there will be capital expenditures in the cost of a one-time charge: in the cost of a one-time charge to reach the standard of fixed assets without tax adjustment; intangible assets to reach the standard of the management system software, a one-time charge to the operating expenses without tax adjustment.

6. Whether the wage and salary expenses incurred by the enterprise are in line with the scope of wages and salaries stipulated in the tax law, whether they are in line with the principle of reasonableness, and whether they are actually paid out in the year of declaring deductions.

7. Whether there are employee welfare expenses, labor union expenses and employee education expenses that exceed the taxable standard and have not been adjusted for tax purposes.

8. Whether there are social insurance premiums and housing provident funds paid for employees in excess of the standard and scope without tax adjustment. Whether there are social insurance and other costs that should be borne by infrastructure projects and special projects that have not been capitalized; whether there are problems such as only withdrawing but not paying, or over withdrawing and underpaying false costs and expenses.

9. Whether there are unauthorized changes in costing methods, adjusting profits.

10. Whether there is no depreciation in accordance with the tax law, depreciation; arbitrarily change the net salvage value of fixed assets and depreciation life; not in accordance with the tax law depreciation method depreciation and other issues.

11. Whether there are problems such as over-standard expenses for business entertainment, advertising and business promotion expenses without tax adjustments.

12. Whether there is an unauthorized expansion of the scope of research and development costs, illegal deductions and other issues.

13. Whether there are deductions that do not comply with the provisions of the State Council's financial and taxation departments of the asset impairment provisions, risk reserves and other expenditures.

14. Whether there is interest expenditure on borrowing from non-financial institutions exceeding the amount calculated in accordance with the lending rate of financial institutions for the same period, without tax adjustment; whether there is interest expenditure that should be capitalized; and whether the interest expenditure of related parties is in compliance with the regulations.

15. Whether there is no tax adjustment for partial or full recovery of assets that have been treated as losses; whether there is no tax adjustment for the portion of losses from natural disasters or accidents for which there is compensation.

16. Whether the deduction of fees and commissions is in accordance with the regulations: whether kickbacks, commissions, rebates, entrance fees, etc. are included in the fees and commissions; whether the recipients are intermediaries and individuals with legal business qualifications; whether the pre-tax deduction ratio exceeds the provisions of the tax law.

17. Whether there are public welfare relief donations that do not meet the conditions or exceed the standards, without tax adjustment.

18. Whether the service fees paid by subsidiaries to the parent company for management are in compliance with the regulations: whether the service content, charges and amount are specified in the form of contract (or agreement); whether the parent company provides the corresponding services; whether the subsidiaries actually pay the fees.

19. Whether fixed assets leased under finance leases are treated as operating leases, with over-amortization of expenses and no tax adjustment.

20. Whether special funds for environmental protection and ecological restoration were withdrawn in accordance with state regulations; whether tax adjustments were made after the special funds were changed.

(3) Related Transactions

Whether there are business transactions with its affiliates, and whether the taxable income and enterprise income tax payable are reduced by not charging or paying the price and expenses according to the business transactions between independent enterprises.

(IV) Withholding and Payment of Withholding Income Tax

Whether withholding and payment of withholding income tax is required for the distribution of dividends by a domestic enterprise to shareholders with overseas investment.

III. Individual Income Tax

Focusing on checking whether individual income tax is withheld and paid in accordance with the law on the taxable income paid to individuals in various forms:

(i) Annuities and performance bonuses issued for employees.

(ii) Various commercial insurances purchased for employees.

(iii) Pension, unemployment and medical insurance paid in excess of the standard for employees.

(iv) Housing provident fund paid for employees in excess of the standard.

(v) Various personal incomes paid to employees in the form of reimbursement invoices.

(vi) Car and communication subsidies.

(vii) Heating and property fees paid for properties personally owned by employees.

(viii) Stock option income. If the employee stock option plan is implemented, whether the difference in the price gained by the employee upon exercising the option is subject to individual income tax based on salary income.

(ix) Whether personal income paid in non-monetary form is subject to personal income tax withholding.

(j) Whether personal income tax is withheld on the purchase of automobiles by an enterprise for an individual shareholder.

(xi) Whether gifts and gratuities given to individuals in other organizations are subject to withholding and payment of individual income tax.

(xii) Whether to fulfill the obligation of full and complete withholding and payment in accordance with the regulations.

Four, property tax

(i) Whether the value of land is included in the value of property to pay property tax.

(b) Whether there are appurtenances inseparable from the house not included in the original value of the property to pay property tax.

(3) Whether the property that has not been completed and inspected but has been actually used is subject to property tax.

(4) Whether the property used without rent is subject to property tax.

(e) Whether the capitalized interest is included in the original value of the property to pay property tax.

V. Land Use Tax

If there is a discrepancy between the actual area of the land and the land use certificate, whether to pay land use tax according to the actual area of the land.

VI. Stamp Duty

(1) Whether to confuse the nature of the contract, apply the tax rate at a lower rate or reduce the tax basis without authorization, fail to calculate the tax on the basis of the entire amount contained in the tax, classify the taxable document as a non-taxable document, and omit to pay the stamp duty.

(ii) Whether the taxable vouchers are not decaled at the time of writing or receiving, but not until the effective date of the vouchers, resulting in delayed payment of stamp duty.

(c) Whether the stamp duty is paid after the increase of paid-in capital and capital surplus.