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Funded enterprises taxable wage hike
State Administration of Taxation announced on the 8th, the State Council's approval, since July 1, 2006, the domestic-funded enterprises in the calculation of corporate income tax to pay the tax deductions allowed wage from the current 800 yuan per capita last month to 1,600 yuan, while to stop the implementation by 20 percent the proportion of floating policy.
Administration of Taxation said it is corporate income tax, "the two laws, the merger" an important pre-reform policy adjustments will help to narrow, the gap between the tax burden on foreign-funded enterprises, and gradually realize fair competition. According to the estimates, the implementation of this policy, will reduce the corporate income tax revenue this year, 12.0 billion. The amount of state revenue impact of not too large, can afford.
At present, I pay income tax of domestic-funded enterprises to implement pre-tax deduction limit for the main tax wage policy.
And foreign-funded enterprises in the calculation of income taxes, wages to allow the full deduction of expenses. According to survey data sources enterprise income tax calculation, funded enterprise income tax burden than the actual foreign high near 10 percentage point difference in wages deducted from the policy is one of the important reasons.
With the sustained and steady development of China's economy, the existing provisions of the standard tax deduction of wages is too low, to some extent, increased the tax burden on domestic enterprises and expanded, the gap between the tax burden on foreign-funded enterprises. Under such circumstances, some companies not to reduce wage expenditure in full deduction of the additional tax burden and take a variety of illegal modifications to deduct the way, if a shopping card concentrated way of deduction of consumption, some to have been staff salaries are interested in spending included in the scope of deduction under some other names, this should be the wages of housing subsidies, subsidies for vehicles have changed, communications subsidies not included in wages and salaries, the other on behalf of deduction. These acts distort the true face of economic activity, also increased the cost of tax administration.
It is understood that the Administration of Taxation has asked the tax authorities at all levels to implement this policy to the relevant enterprises at the same time, seriously measured July 1 this year since the implementation of the new wage policy after tax for each taxpayer to pay the specific impact of corporate income tax , in September -12 taxpayers on a monthly basis (quarterly) to declare in advance when the corporate income tax to ensure that on July -12 provisions to implement the new policy in place.
2006-09-11
