Summary:

On August 15th, the Municipal Commerce Commission and the Municipal Local Taxation Bureau and the Municipal Finance Bureau held a pilot forum on the financing lease “camp reform”. The meeting is organized by the Municipal Leasing Industry Association. The relevant departments of the Service Industry Development Department, the Municipal Taxation Bureau, the Municipal Finance Bureau, and the relevant person in charge of the Taxation Office of the Municipal Finance Bureau, AVIC Leasing, Electrical Leasing, Ronglian Leasing, Far East Leasing, and CMB Leasing Representatives of various financial leasing companies in the city participated.

At the symposium, the participants of the Ministry of Finance and the State Administration of Taxation issued a "Notice on the implementation of the taxation policy for the reform of the business tax on the transportation industry and some service industries in the country" (Cai Shui [2013] No. 37). discuss. According to Circular No. 37, the pilot project of “Calculation Reform” has been launched nationwide since August 1 this year, and it is clear that regardless of the old and new contracts, the principal and interest of the sale and leaseback business must be fully levied. The participating companies said that the implementation of Circular No. 37 will cause a sharp increase in corporate tax burden, which will have a major impact on the development of the industry, which not only limits the development of future leaseback leasing business, but also limits the development of many industry leasing businesses. The financial leasing enterprises will face the huge tax burden cost of the lease leasing business, the non-VAT general taxpayer can not invoice, the lessee repeatedly deduct the tax, the new policy and the State Administration of Taxation announced the conflict of the 13th issue of 2010 And other issues.

The relevant person in charge of the Municipal Local Taxation Bureau and the Municipal Finance Bureau explained in detail the background and specific provisions of the relevant policies, answered the concerns of the enterprises one by one, and stated that they would continue to report the relevant situation to the national finance and taxation department, and obtained the understanding and affirmation of the enterprise representatives. . With the further implementation of the “Calculation Reform” pilot project, our committee will continue to pay close attention to the “funding reform” pilot situation of the financial leasing industry, and cooperate with the municipal finance and taxation departments to timely reflect industry demands and reasonable suggestions. Related background: Since January 1, 2012, Shanghai has taken the lead in piloting the change of business tax to VAT in the country. Among them, tangible movable property leasing has been included in the scope of tax reform. In order to ensure the smooth progress of the reform pilot, and to avoid large fluctuations in the tax burden of financial leasing companies, the Municipal Finance Bureau, the Municipal Taxation Bureau and the Municipal Commerce Commission closely cooperated and fully communicated, and obtained support at the national level, prompting the Ministry of Finance, the State Administration of Taxation and this The municipal finance has issued a series of policies that are conducive to the development of the financial leasing industry.

1. "Notice on the Pilot of VAT Reform for the Transportation Tax and Some Modern Service Industries in Shanghai" (Cai Shui [2011] No. 111) Clearly from January 1, 2012, "via the People's Bank of China, the China Banking Regulatory Commission The Ministry of Commerce approves the enterprises that operate the financial leasing business to provide tangible movable property financing leasing services, and the part of the VAT actual tax burden exceeding 3% is subject to the VAT refund policy. The Shanghai pilot policy pilots the sale and leaseback business, and issues a special VAT invoice to the lessee based on the portion of the lease amount in the finance lease receivable. The principal part does not need to issue a VAT invoice.

2. The State Administration of Taxation's “Notice on Tax Issues Concerning the Sale of Assets by the Lessee in the Financing Sale and Leaseback Business” ([2010] No. 13) clarifies that the sale of assets by the lessee in the leaseback business is not VAT. And the scope of business tax collection, no value-added tax and business tax, that is, the value of the principal is not levied VAT, only the value-added part, that is, the interest income part of the value-added tax.

3. The “Notice on Implementing the Transitional Financial Support Policy for the Implementation of the Business Tax Reform VAT Pilot” (Shanghai Finance Tax [2012] No. 5) clarifies the pilot enterprises that have increased the tax burden arising from the conversion of the old and new tax systems in the pilot process of this Municipality. The transitional financial support policy shall be implemented in the manner of “enterprise application according to actual application, financial classification support, and timely fund rescheduling”.

4. On May 24, 2013, the State Administration of Taxation of the Ministry of Finance issued [2013] No. 37 document, which came into effect on August 1, and abolished Caishui [2011]] No. 111. Caishui [2013] No. 37 stipulates that the pilot taxpayers approved by the People's Bank of China, the Ministry of Commerce, and the China Banking Regulatory Commission to provide financial leasing business shall provide tangible movable financial leasing services, with the full price and extra-cost (including residual value) deducted. The loan interest of tangible movable property (including foreign exchange and RMB borrowing interest), customs duties, import link consumption tax, installation fee and insurance premium paid by the lessor are sales, that is, regardless of the old and new contracts, the principal of the sale and leaseback business Both the tax and the rent must be fully levied on VAT and will be required to begin execution on August 1.