What is a Tax Deferral?

Deferred tax payment is also called "deferred tax payment", which means that taxpayers are allowed to defer payment of their tax payable or pay in installments. This method can be applied to various taxes, especially for large amounts of taxes. The deferred tax performance is to postpone the taxpayer's tax liability backwards, which is essentially equivalent to the government giving a taxpayer a non-interest-bearing loan equal to its deferred tax payment amount within a certain period of time, which can help the company lift financial difficulties to a certain extent . As far as the government is concerned, the implementation of deferred taxation is equivalent to postponed taxation, and the loss is a certain amount of interest.

Deferred tax

The government has formulated the deferred tax regulations for the following reasons:

I. Avoid

(1)

extension

Special difficulties in deferred tax payments

Deferred tax payment is a relatively common business in tax agency business. Tax agents must master some conditions and time limits for deferred tax payment.

Deferred tax payment is a regulation made by the state in order to protect tax revenue, protect the legitimate rights and interests of taxpayers, and take care of the special difficulties encountered by taxpayers in fulfilling their tax obligations. These "special difficulties" are mainly:

1. Irresistible natural disasters such as water, fire, wind, hail, tide, and earthquake;

2. Accidents such as theft, robbery, etc. of taxable cash, cheques, and other property;

3. The direct impact of the state's adjustment of economic policies;

4. Short-term loan arrears;

5. Other special difficulties explicitly listed by provincial tax authorities.

If the taxpayer does have the "special difficulties" listed above and cannot pay the tax on time, the tax may be postponed with the approval of the director of the taxation bureau (branch) at or above the county level, but the maximum period shall not exceed 3 months; If the deferred tax payment amount is large and the extension is applied for 2 to 3 months, it must also be approved by the director of the prefecture-level tax bureau. Conditions, you can only apply for a deferred payment once in a tax year; if you need to defer payment again, you must report to the director of the provincial tax bureau for approval.

Deferred tax requirements

Tax deferral must be submitted in written form before the reporting period stipulated by laws, regulations, and tax authorities. The tax deferred payment, tax amount, time of taxation, and reasons for applying for tax deferral must be submitted to the tax authority for review. If the examination is qualified, the taxpayer shall fill in the "Approval Form for Deferred Payment of Taxes" in the unified format of the tax authorities, and submit the approval step by step after the notice of the deferred tax amount and time limit is signed by the basic collection unit. Taxpayers will not be charged late fees within the time limit for approving deferred payment of taxes; if they are overdue, the tax authorities will add a late fee of five ten thousandths of the unpaid taxes from the day after the expiration of the approved time limit, and A notice of tax payment is issued, ordering it to be paid within a period of up to 15 days; if the payment is overdue, the tax authority will enforce the tax due and the late payment fee together.