What are the Advantages and Disadvantages of a Tax on Earnings?

Income tax is the definition and levy percentage of individual taxable income by local governments in different periods, and sometimes pays separate contributions income, wage income, and occasional income (such as winning a lottery). Income tax, also known as income tax and income tax, refers to a type of tax that the state collects on various incomes of legal persons, natural persons, and other economic organizations within a certain period of time.

[su de shuì]

First: usually pure income is

In contrast,

First, the directness of the tax burden is not easy to pass on.

Second, the breadth of the tax base. As

Corporate income tax incentives

The state gives preferential corporate income tax to industries and projects that are supported and encouraged for development.

The following income of an enterprise is tax-exempt income.

A. Interest income from government bonds;

B. Between eligible resident enterprises

Ministry of Finance: Income tax exemption on local government bonds in the past three years

Ministry of Finance September 22

Presentation of income tax

Deferred income tax assets and deferred income tax liabilities should generally be listed in the balance sheet as non-current assets and non-current liabilities. Income tax expenses should be separately listed in the income statement. At the same time, the income tax-related expenses should also be disclosed in the notes. information.

1. When the following conditions are met at the same time, the enterprise shall present the current income tax assets and current income tax liabilities as the net amount after offset:

The enterprise has the legal right to settle on a net basis;

It is intended to settle or acquire assets on a net basis and settle debts simultaneously.

2. When the following conditions are met at the same time, the enterprise shall list the deferred income tax assets and deferred income tax liabilities as the net amount after offset:

The enterprise has the legal right to settle the current income tax assets and current income tax liabilities on a net basis;

Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same taxation authority on the same taxpayer or different taxpayers, but each deferred income tax asset and deferred income tax that are important in the future During the period when the liability is reversed, the taxpayer involved intends to settle the current income tax assets and current income tax liabilities on a net basis, or acquire assets and settle liabilities simultaneously.

Levy system type

(1) Classified income tax refers to dividing income into certain categories in a certain way, and levying income separately for different types of income, such as dividing income into operating profit income, interest income, dividend income, salary income, etc. Corresponding income tax. The advantages of levying different types of income are: You can determine the corresponding tax policies and taxation methods according to different types of income. Most of them are suitable for developing countries with low collection and management technologies. The disadvantage is that the tax system is more complicated and the taxation is more complicated. Tedious.

(2) Comprehensive income tax refers to the collection of all taxpayer incomes and taxation at a uniformly prescribed tax rate, such as corporate income tax. Its advantage is that it is easy to calculate and levy, and it is more suitable for a progressive tax system, which is conducive to a fair tax burden. Its disadvantages are that it is difficult to calculate comprehensive income during taxation, and it is cumbersome to perform comprehensive deductions. Adopted by developed countries.

(3) Mixed income tax refers to the combination of classified income tax and comprehensive income tax, which is taxed separately for certain incomes by category, and combined income tax for other incomes.

Expense deduction system requirements

(1) The actual reporting method, also known as the actual deduction method, determines the pre-tax deduction completely based on the taxpayer's costs, expenses, or actual expenses. (2) The standard deduction method refers to pre-determining one or more standards for the necessary costs, expenses or basic living expenses of the taxpayer, which are allowed to be deducted before tax as a fixed amount.

Choice of tax rate form

(1) Proportional tax rate. The proportional tax rate is adopted, and the taxpayer's income is taxed at the same rate regardless of the amount of income, and the taxpayer's burden level is always maintained at a certain ratio.

(2) Progressive tax rate. The use of progressive tax rates refers to taxation at different tax rates depending on the amount of taxpayer's income. Its tax rate rises and falls with the increase and decrease of income. The tax system is flexible and can fully reflect the principle of affordable and fair tax burden.

Determination of specific course sign methods

(1) The source class method is an abbreviation of the source class method, which refers to the collection of income tax in the place where the income is generated. Generally applicable to the levy system of classification, which cannot reflect the principle of reasonable tax burden.

(2) The reporting method, also known as the comprehensive taxation method, refers to the taxpayer's self-declaration of his taxable income according to the tax law. After investigation and verification by the tax authority, the taxable amount is calculated based on the reported taxable income. Taxpayers pay in one or more installments. Generally applicable to the comprehensive course levy system, in line with the principles of affordable energy and fair tax burden.