Summary:

The Ministry of Finance and the State Administration of Taxation issued the "Notice on the Comprehensive Push-Up of the VAT Reform for Business Taxes" (Cai Shui [2016] No. 36). Since May 1, 2016, the business tax has been fully promoted and value-added nationwide. The tax (hereinafter referred to as “camp reform”) pilot, construction, real estate, financial, life services and other business taxpayers, included in the scope of the pilot, from the payment of business tax to pay VAT. According to the different subject matter, the document divides the financial leasing service into tangible movable financial leasing services and real estate financial leasing services. Taxation is carried out at the rate of 17% and 11% respectively; in terms of nature, the financing sale and leaseback business is characterized as financial business, and the value-added tax is paid at a rate of 6%. In addition, the “Super 3 levy and refund” policy is only applicable to tangible movable property financing leases and tangible movable assets financing sale and leaseback business.

The Ministry of Finance and the State Administration of Taxation issued the "Notice on the Comprehensive Push-Up of the VAT Reform for Business Taxes" (Cai Shui [2016] No. 36). Since May 1, 2016, the business tax has been fully promoted and value-added nationwide. The tax (hereinafter referred to as “camp reform”) pilot, construction, real estate, financial, life services and other business taxpayers, included in the scope of the pilot, from the payment of business tax to pay VAT.

According to the different subject matter, the document divides the financial leasing service into tangible movable financial leasing services and real estate financial leasing services. Taxation is carried out at the rate of 17% and 11% respectively; in terms of nature, the financing sale and leaseback business is characterized as financial business, and the value-added tax is paid at a rate of 6%. In addition, the “Super 3 levy and refund” policy is only applicable to tangible movable property financing leases and tangible movable assets financing sale and leaseback business. The relevant policies are as follows:

Tax rate and rate

VAT rate:

(1) Taxpayers shall be taxable, except for the provisions of items (2), (3) and (4) of this Article, the tax rate is 6%.

(2) Providing transportation, postal, basic telecommunications, construction, real estate leasing services, selling real estate, and transferring land use rights at a tax rate of 11%.

(3) Providing tangible movable property leasing services at a tax rate of 17%.

(4) Cross-border taxable behaviors of domestic units and individuals with a tax rate of zero. The specific scope is separately stipulated by the Ministry of Finance and the State Administration of Taxation.

VAT rate:

The VAT rate is 3%, unless otherwise stipulated by the Ministry of Finance and the State Administration of Taxation.

Simple tax calculation

Generally, the following taxable behaviors of taxpayers may be subject to the simple tax calculation method:

4. The operating lease service provided by the tangible movable property acquired before the date of the pilot reform.

5. The tangible movable property lease contract signed before the date of inclusion of the pilot reform and increase pilot.

Real estate operating lease service

If a general taxpayer rents out the real estate acquired before April 30, 2016, he or she may choose to apply the simple tax calculation method and calculate the taxable amount according to the levy rate of 5%.

Definition

(5) Financial services.

Financial services refer to the business activities of operating financial insurance. Including loan services, direct fee financial services, insurance services and financial commodity transfers.

1. Loan service. Loan refers to the business activity of lending funds to others to obtain interest income.

Revenue from various occupations and borrowings, including income during the holding period of financial products (including maturity) (guarantee income, remuneration, capital occupation, compensation, etc.), credit card overdraft interest income, interest on buying resale financial products Interest income from interest income, margin financing and securities lending, as well as income from interest and interest of financing for sale and leaseback, bills, penalty interest, discounted bills, and loans, are subject to VAT according to the loan service.

Financing sale and leaseback refers to the business activities of the lessee who leases the assets to the lessee after the asset is sold to the enterprise engaged in the financing sale and leaseback business for financing purposes.

(6) Modern services.

5. Rental services.

Rental services, including financial leasing services and operating leasing services.

(1) Financial leasing services refer to leasing activities with the characteristics of financing and transfer of ownership. That is, the lessor purchases the tangible movable property or the real estate lease to the lessee according to the specifications, model, performance and other conditions required by the lessee. The leasehold property belongs to the lessor during the contract period, and the lessee only has the right to use, and the rent is paid after the contract expires. After that, the lessee has the right to purchase the lease item in accordance with the residual value to have ownership. Whether the lessor sells the lease to the lessee, it is a financial lease.

According to the different subject matter, the financial leasing services can be divided into tangible movable financial leasing services and real estate financial leasing services.

Financing sale and leaseback does not pay VAT in accordance with this tax item.

(2) Operating lease service refers to the business activities in which the tangible movable or immovable property is transferred to others for use within the agreed time and the ownership of the leased property is not changed.

According to the different subject matter, the operating lease service can be divided into tangible movable property operating lease service and real estate operation lease service.

Sales

The sales of the financial leasing business are as follows:

(1) Pilot taxpayers approved by the People's Bank of China, the China Banking Regulatory Commission or the Ministry of Commerce to engage in financial leasing business, providing financial leasing services, with the full price and extra-costs obtained, deducting the interest paid on borrowing (including foreign exchange loans and RMB borrowing interest) The balance after issuing bond interest and vehicle purchase tax is sales.

The sales of the financing sale and leaseback business are as follows:

(2) Pilot taxpayers approved by the People's Bank of China, the China Banking Regulatory Commission or the Ministry of Commerce to engage in financial leasing business, providing financing after-sales leaseback services, in order to obtain all the price and out-of-cost expenses (excluding the principal), and deduct the borrowings from external payments. The interest (including foreign exchange borrowings and interest on RMB borrowings) and the balance of interest on bonds are issued as sales.

The provisions for previous business sales are as follows:

(3) According to the tangible movable property financing sale and leaseback contract signed before April 30, 2016, the tangible movable property financing sale and leaseback service provided before the contract expires can continue to be added according to the tangible movable property financing lease service. tax.

If the pilot taxpayer who continues to pay the value-added tax in accordance with the tangible movable financial leasing service is approved by the People's Bank of China, the China Banking Regulatory Commission or the Ministry of Commerce to engage in the financial leasing business, according to the tangible movable property financing sale and leaseback contract signed before April 30, 2016, the contract For the tangible movable property financing sale and leaseback service provided before the expiration date, you can choose one of the following methods to calculate the sales:

1 The total amount of the price and the extra-cost charged to the lessee, after deducting the principal amount charged to the lessee, and the interest paid on the loan (including foreign exchange and RMB borrowing interest) and the interest on the issuance of the bond are sales.

The taxpayer provides the tangible movable property financing sale and leaseback service, and the principal of the price that can be deducted when calculating the current sales is the principal that should be collected in the current period as agreed in the written contract. If there is no written contract or the written contract does not stipulate, it is the principal amount actually collected in the current period.

The pilot taxpayer shall provide the tangible movable property financing after-sales leaseback service, and the tangible movable property price principal collected from the lessee shall not issue a special VAT invoice, and may issue an ordinary invoice.

2 The balance of all the payment and the extra-cost charged to the lessee, after deducting the interest paid on the loan (including foreign exchange and RMB borrowing interest) and the interest on the bond is the sales amount.

The conditions specified above apply:

The paid-in capital of the leasing company approved by the provincial-level commerce department and the National Economic and Technological Development Zone shall reach 170 million yuan.

(4) Pilot taxpayers engaged in financial leasing business approved by the provincial-level commerce department authorized by the Ministry of Commerce and the State Economic and Technological Development Zone, the paid-up capital reached 170 million yuan after May 1, 2016, from the month when the standard was reached. It shall be implemented in accordance with the provisions of points (1), (2) and (3) above; if the paid-up capital does not reach 170 million yuan after May 1, 2016, but the registered capital reaches 170 million yuan, it will remain before July 31, 2016. It may be implemented in accordance with the provisions of points (1), (2) and (3) above. The financial leasing business and financing sale and leaseback business carried out after August 1, 2016 shall not be in accordance with the above (1), (2), ( 3) Point the implementation.

Immediate withdrawal policy

The paid-in capital of the leasing company approved by the provincial-level commerce department and the National Economic and Technological Development Zone shall reach 170 million yuan.

The general taxpayer among the pilot taxpayers approved by the People's Bank of China, the China Banking Regulatory Commission or the Ministry of Commerce to provide financial leasing business, provide tangible movable property financing leasing services and tangible movable property financing after-sales leaseback services, and the actual tax burden on their VAT exceeds 3%. Part of the implementation of the VAT refund policy. The general taxpayer among the pilot taxpayers authorized by the Ministry of Commerce and the State Economic and Technological Development Zone, who are engaged in the financial leasing business and the financing sale and leaseback business, will have a paid-up capital of 170 million after May 1, 2016. In accordance with the above provisions from the month when the standard is reached; if the paid-up capital does not reach 170 million yuan after May 1, 2016, but the registered capital reaches 170 million yuan, it can still be implemented according to the above regulations before July 31, 2016. The tangible movable property finance leasing business and the tangible movable property financing sale and leaseback business carried out after August 1, 2016 shall not be implemented in accordance with the above provisions.

Actual tax burden

(3) The actual tax burden of value-added tax referred to in these Provisions refers to the proportion of the total amount of VAT paid by the taxpayer in the current period to the taxable service, and the proportion of the total amount of the taxable service provided by the taxpayer in the current period.