Construction VAT 3%, 6%, 9%, 13% can not distinguish the tax rate, enjoy a unique policy
The taxation pressure of the construction industry has always been great. Most construction companies lack cost tickets and input items. Value-added tax and corporate income tax account for a high proportion. How to properly and effectively alleviate the tax pressure of construction companies? Let's take a look.
1. Reasons for the high pressure on value-added tax and corporate income tax of construction enterprises
1. The source of cost invoices is complicated, and some projects cannot obtain formal invoices or insufficient invoices
The cost tickets of construction companies involve many issues, such as materials, labor, installation, equipment investment expenditures, project investment expenditures, pre-assessment investment expenditures, material transportation fees, procurement and storage fees, project management fees, etc., although most of the expenditures can be Invoices are obtained, but in many cases, suppliers may not issue invoices for lower prices. As a result, many links lack cost invoices.
2. Different supplier composition
Most of the materials in the construction industry are purchased based on the location of the project. Usually, companies will find small-scale suppliers with more price advantages when they are not particularly large. However, small-scale taxpayers will only need 1% value-added in 2020. The tax rate, that is, the issuance of a 1% value-added tax invoice or general invoice, which indirectly leads to a 2% increase in the corporate tax burden of ordinary taxpayers.
3. Partially hidden costs cannot get cost tickets
For construction companies, if they want to obtain an engineering business, it is inevitable that there will be a lot of hospitality expenses, and this is also a large expenditure, and it is basically impossible for companies to make costs.
Construction companies often consult: how to distinguish between 3%, 6%, 9%, and 13% value-added tax?
(1) The situation where the 3% levy rate applies.
Construction companies provide the following construction services, implement simple tax calculation, and the value-added tax rate is 3%:
(1) Provide construction services for old construction projects that are subject to simple tax calculation;
(2) Provide construction services for contract clearance projects;
(3) Construction services provided for Project A;
(4) Construction services provided by small-scale taxpayers.
(2) The 6% value-added tax rate is rarely involved as a construction company, mainly for testing and testing, engineering consulting and other businesses.
General taxpayers of construction enterprises provide construction services for general tax calculation items, and the input tax amount is used to offset the output tax amount to calculate the value-added tax payable. The more input VAT received in the current period, the less VAT payable. Therefore, when construction companies purchase building materials and other goods and receive services, they should choose general taxpayers as their suppliers as much as possible, so that they can obtain more input tax and reduce their VAT burden.
(3) The situation where the 9% value-added tax rate is applicable.
General taxpayers of construction companies provide construction services, and the value-added tax rate is 9%, which is the basic tax rate applicable to general taxpayers of construction companies providing construction services. Applies to the following situations:
(1) Projects started after May 1, 2016;
(2) Construction shall be started before May 1, 2016, but Party A chooses the general tax calculation method for construction projects, except for the A supply project and the clearing contract project.
(4) 13% of cases are involved.
Construction companies purchase engineering materials from general taxpayers, such as steel, wood, formwork, various pipes, real stone paint, latex paint, etc., and lease construction machinery and other tangible movable properties, and can obtain special value-added tax invoices with a tax rate of 13%.
2. How to solve the tax burden of construction enterprises?
1. Strengthen financial accounting
Strengthen accounting work management, establish and improve internal accounting management systems, strictly conduct audit and management of vouchers, standardize the setting and registration of accounting books, strengthen accounting professional ethics, build financial information communication platforms, strictly follow fund payment procedures, and improve payment review Evaluation system, increase the intensity of internal audit, and implement expenditure authority control system
Strengthen the awareness of enterprises to ask for invoices: Enterprises should try their best to negotiate invoice issues during the transaction process, not to covet lower unit prices, to make products cause tax-related risks, and not to make profits inflated because they cannot obtain invoices.
2. Preferential policies for headquarters economy
(1) Sole proprietorship
Enterprises can set up branches, subsidiaries or new companies in the economic investment promotion parks of government headquarters in Chongqing, Shanghai, Hubei, Jiangsu, Jiangxi, Qinghai, etc., and implement business diversion for the main company. Some trade and sales companies can combine traditional technical departments with The sales department is separated and a sole proprietorship is established to provide technical services or after-sales service.
Sole proprietorships (small-scale/general taxpayers) can apply for the approved collection. The income of a sole proprietorship enterprise enjoys local tax preferential policies, which is applicable to the 5%-35% excess progressive tax rate, and is levied according to the industry’s taxable income rate. After the individual income tax is levied, small-scale taxpayers 0.5%-2.1% (small-scale taxpayers) 2.1%), 0.5%-3.1% of general taxpayers.
The small-scale total tax burden is not higher than 5.18%. In this way, there is no need to pay another 20% individual tax when dividends are distributed.
case analysis:
An architectural design company in Shanghai has an annual turnover of 9 million yuan excluding tax. Housing, labor costs and various expenses totaling 2 million yuan can obtain invoices or other valid vouchers. Part of the cost and expense invoices cannot be obtained. Will face high taxes. We recommend that companies split their business into two small-scale sole proprietorships
Value-added tax: 900*6%=540,000
Additional tax: 54*12%=64,800
Corporate income tax: (900-200)*25%=1.75 million
Personal income tax: (900-200-175)*20%=1.05 million
Business diversion, establishment of sole proprietorship, reasonable tax saving:
Value-added tax: 450*1%=45 thousand
Additional tax: 4.5*12%=0.54 million
Corporate income tax: 0
Personal income tax: 94,500
Total tax payment: 144,900 *2 = 289,800
(2) Limited company
A limited company mainly provides a certain percentage of tax support for the company’s value-added tax and corporate income tax. Generally, it is based on 40%-70% of the tax retained in the park. The company can register a branch, subsidiary or establish a new company in the park. There is no impact on the undertaking of the business, and the industry is almost unlimited. Whether it is the service industry, consulting industry, commerce industry, construction engineering, production and sales and other industries, you can enter the park to enjoy tax support policies.
The support method implements "first collection and then support", with tax in the same month and support in the following month, achieving the purpose of tax saving in the form of financial incentives. Super big taxpayers can apply for special financial support policies.
Case analysis:
A construction engineering company in Jiangsu has an annual profit of 120 million and a value-added tax of 6.8 million. The company has high profits and a heavy tax burden. It hopes to be compliant and tax-saving.
Value-added tax: 6.8 million
Corporate income tax: 12000*25%=30 million
Total: 36.8 million
After the enterprise enters the park, the value-added tax can enjoy up to 1.943 million, and the corporate income tax can enjoy up to 10.714 million. That is, the enterprise that settles in our park can enjoy up to 12.659 million support.