Fundamentals of Business Law (Knowledge
Collection)
1. Law: It is formulated or approved by the state and guaranteed to be implemented by the
coercive power of the state to reflect the will of the ruling class
The normative system, which is determined by the material life of the ruling class, is the
same as law in the broad sense.
2. Characteristics of law: national will, coercion (universal observance), benefit (determination
of rights and obligations), normative (universal application).
3. Legal relationship: There are property relations (civil legal relations) and personal non-property
relations (civil) between equal subjects
business legal relationship).
4. The state's management of economic activities is an economic and legal relationship.
5. The content of the legal relationship: the rights and obligations enjoyed by the subjects of
the legal relationship.
6. Legal facts are the direct cause of the occurrence, alteration and termination of legal
relations. Legal facts are divided into legal events and legal acts. Legal events: not
transferred by the subjective will of people (caused by nature, which is an absolute legal
event, and caused by society, which is a relative legal event)
(1) Acts are divided according to the nature of the law: lawful and illegal
(2) According to the form of expression: positive and negative
Legal acts: transfer by the will of the subject (3) Whether to divide by the expression of intent:
expressive acts and non-expressive acts
(4) According to the expression of the subject's meaning: unilateral and multi-party
(5) According to whether a specific form or substantive element is required, it is divided into:
the form and
Optional
(6) According to the actual participation of the subject, it is divided into autonomy and
agency
7. Non-normative documents such as court judgments and rulings are not one of the forms
of law.
(1) The Fundamental Law and the Common Law shall be → according to the content, effect,
and enactment procedure
8. Classification of laws (2) General law and lex specialis in accordance with time,
space and effect on persons→
and (3) substantive law and procedural law according →to
the content of the law
8. The Civil Code belongs to statutory law, common law, substantive law, general law, and
domestic law.
9. China's litigation system is divided into three types: criminal litigation, civil litigation, and
administrative litigation. Economic disputes can also be resolved through arbitration as a
non-litigation method.
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10. Various litigation systems apply to economic disputes: (1) arbitration and civil litigation
→ between equal subjects
(2) Administrative reconsideration or administrative litigation
→ vertical relationship economic disputes11. Arbitration institutions are not established
according to administrative divisions and are independent of administrative organs;
Establishment conditions: legal, economic and trade experts shall not be less than 2/3 of the
total number
12. The arbitration agreement exists independently, and the modification, rescission or
termination of the contract shall not affect its validity.
13. If there is any objection to the validity of the arbitration agreement, one party requests
the arbitration institution to make a decision, and the other party requests the court to
decide.
It is ultimately up to the court to decide. (The opposing party should do so "before the first
hearing of the arbitration").
14. The award shall take legal effect from the date of issuance; Once the administrative
reconsideration decision is served, law will occur
Effectiveness. The arbitral tribunal can only regulate and adjudicate, but does not have the
power to enforce.
15. Collegiate system: First instance: The adjudicators and jurors jointly form a collegial
panel
Second instance: A collegial panel composed of adjudicators, with an odd number of 3 or
more.
16. Regardless of whether the case is tried in public, the verdict is to be publicly announced.
17. First instance final adjudication cases: voter qualification cases, debt cases, publicity
and reminders (cases of invalidating bills)
and bankruptcy and debt repayment cases of enterprise legal persons.
18. The parties to the final judgment or ruling shall not appeal, and any errors may be
corrected through trial and supervision procedures.
19. When choosing a competent court, territorial jurisdiction is generally "the plaintiff is the
defendant"; Except in exceptional circumstances.
(1) Contract dispute: the place where the defendant is located or the place where the
contract is performed
(2) Disputes over insurance contracts: the place where the defendant is domiciled or where
the subject matter of the insurance is located
20. Special territorial
jurisdiction:
(3) Bill dispute: the place where the bill is paid or the
defendant's domicile
(4) Contract of carriage: place of departure, place of
destination, place of residence of the defendant
(5) Infringement: the place of infringement (place of
committion, place of result), and the defendant's
residence
place
(6) Compensation for
transportation damages: the
place where the accident
occurred, the place where the vehicle and ship arrived
first,
The defendant's domicile
20. Exclusive jurisdiction: inheritance of the estate, by the decedent's domicile or the
location of the main estate at the time of death.
21. Where the plaintiff files a lawsuit with two or more courts with jurisdiction, the court that
"files the case first" has jurisdiction.
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22. Expiration of the litigation period (2 years in ordinary litigation and 1 year in special
litigation: (1) compensation for bodily injury, (2) failure to declare the sale of substandard goods,
(3) delay or refusal to pay rent, (4) loss or damage of deposited finances), the right holder loses
the right to win the lawsuit, and the substantive right does not disappear.
23. The maximum limitation period shall be within 20 years from the date on which the right
holder knows or should have known.
24. Understand the suspension, interruption (zeroing out of the previously calculated time),
or extension of the litigation period.
25. Scope of administrative reconsideration: The parties are dissatisfied with the "specific
administrative acts" of the administrative organs. Excluded matters: dissatisfaction with
administrative sanctions or personnel treatment; Mediation of civil disputes (administrative
litigation may be used).
26. Time limit for applying for administrative reconsideration: within 60 days from the date on
which the specific administrative act is known or should have been known .
27. The burden of proof for administrative reconsideration shall be borne by the respondent;
The administrative organ shall make an administrative reconsideration decision within 60
days from the date of acceptance.
28. Scope of administrative litigation: Those who are dissatisfied with administrative
punishments or administrative compulsory measures are considered administrative organs
Infringement of business autonomy as provided by law.
29. Prosecution and acceptance: apply for reconsideration first, and then file a lawsuit with
the people's court if you are dissatisfied with the reconsideration. Where a lawsuit is filed
directly with the court, it shall be filed within 3 months from the time between the
administrative act is known, and where the statutory time limit is delayed, an extension of the
time limit may be applied for within 10 days after the obstacle is removed. The people's court
shall decide whether to file the case or rule on whether to accept it within 7 days.
30. Mediation is not applicable to administrative cases, but compensation litigation may be
mediated.
31. The people's court shall make a first-instance judgment within 3 months from the date on
which the case is filed; If a party is dissatisfied with the judgment, he or she may appeal to the
higher court within 15 days from the date of service of the judgment, and within 10 days from the
date of service of the judgment. (Final judgment within 2 months).
32. Administrative penalties include: warnings, fines, confiscation of unlawful gains, orders
to suspend production and business, suspension of licenses, or revocation of licenses
Witness, administrative detention.
33. Administrative sanctions include: warnings, demerits, major demerits, demotion,
dismissal, and expulsion.
34. The faculty and staff of state-run colleges and universities shall be implemented in
accordance with the Civil Servants Law, not the Labor Law.
35. When an employer recruits a worker, it shall not require the worker to provide a
guarantee or collect property from the worker in any other name, and if it violates the rules,
the employer shall be fined 500-2000 per person. The employer shall establish an
employment relationship with the employee from the date of employment.
36. If the employer fails to conclude a fixed-term labor contract from the date on which it
should conclude a fixed-term labor contract, it shall pay it monthly
2 times the salary.
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37. If the contract has not been signed and the employee has been employed for one month but
not one year, the labor contract shall be re-signed, and the salary shall be doubled, and no penalty
shall be imposed in the first month. After 1 year of employment: (1) re-signing the contract, (2)
paying 2 times the salary (from the day after the expiration of 1 month to the day before the
expiration of 1 year), (3) it is deemed to have signed an indefinite term labor contract.
38. Part-time may enter into a verbal agreement, and the average working day shall not
exceed 4 hours, and the cumulative amount per week shall not be exceeded
24 hours, and the settlement and payment cycle is not more than 15 days.
39. Necessary clauses of the labor contract: (1): the name and address of the employer, and
the legal representative or main person in charge
(2): The worker's name, address, ID number and other valid ID cards
Piece number
(3): Labor contract term, salary, etc
40. The signing of an indefinite-term labor contract needs to be indicated in the labor contract
(two forms of conclusion: negotiation and statutory compulsion). Statutory compulsion: 10
years of continuous service ; The labor contract system has been implemented for the first
time or the state-owned enterprise has been restructured for 10 years and is less than 10
years before retirement; Signing two fixed contracts in a row.
41. If the employer does not conclude a contract with the employee for one year, it shall be
deemed to have entered into an indefinite contract with the employee on the day of the
expiration of one year. Overtime is generally not more than 1 hour per day, no more than 3
hours in exceptions, and no more than per month
36 hours, except for special trades. 42. Provisions on paid annual leave:
working hours
Number of days of annual
leave
1-10 years
5 days
10-20
years
10 days
More than 20 years
15 days
Annual leave is not available Sick leave accumulated for more than 2 months Sick leave
accumulated for more than 3 months Sick leave accumulated for more than 4 months
43. Wages shall be paid under special circumstances: 150% of overtime (50%-100% of the
compensation shall be paid to the worker if not paid), 200% of the wage standard for those
working on rest days and no compensatory leave, and 300% of the wage standard for
working on statutory holidays
44. The employer shall not deduct more than 20% of the employee's wages per month, and
the remaining wages shall not be lower than the maximum
Low wage standards.
45. Mandatory provisions for the probationary period: the salary shall not be less than 80%
of the regular salary .
The duration of the employment contract
More than 3 months but less than 1 year
Between 1 year and less than 3 years
More than 3 years
Duration of the trial No more than 1 month, no more than 2 months,
no more than 6 months
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46. The liquidated damages paid by the worker shall not exceed the training fee paid by the
unit
47. If you sign a non-compete clause (term <=2 years), you must give the employee
corresponding economic compensation, otherwise the clause is invalid.
48. If the employer unilaterally terminates the labor contract, it shall give 30 days' written
notice or pay an additional 1 month's salary.
49. Economic layoffs: If more than 20 employees are laid off, or less than 20 people, but accounting
for more than 10% of the total number of employees, the situation shall be explained to the trade
union or employees 30 days in advance, and the plan shall be reported to the labor
administrative department after listening to opinions.
50. When the employee has worked in the unit for 15 consecutive years and is less than 5 years
away from the retirement age, it cannot be dissolved or terminated
Labor contract (double compensation is required for termination)
51. Economic compensation standard: 1 month's salary → 1 month of work for 1 year, and half a
month's salary → less than 6 months
capital Severance = years of service * monthly salary
52. If the monthly wage of the worker is three times higher than the local average wage, the
severance shall be paid at three times the average monthly wage of the local area in the
previous year, but the payment period shall not be greater than 12 years.
53. If the employer fails to pay social insurance to the employee, the calculation period of the
severance compensation shall be calculated from January 1, 2008 when the employee
terminates the labor contract, and may be calculated in sections under other circumstances.
54. Labor dispatch: (1) The labor contract → signed between the labor dispatch unit and the
employee
(2) The labor dispatch agreement → signed between the labor dispatch unit and the
employing unit
55. Labor arbitration is a necessary procedure for labor litigation, and the jurisdiction of labor
arbitration shall be the labor dispute arbitration commission at the place where the contract is
performed (the place of actual workplace) or where the employer is located. The statute of
limitations for labor arbitration is one year, but the arrears of wages to the employee are not
subject to the statute of limitations, but if the labor relationship is terminated, it shall be filed
within one year from the date of termination.
56. Time limit for trial: It shall be completed within 45 days from the date of trial, and shall not
be extended by more than 15 days for complex cases.
57. Social insurance legal system: (1) The proportion of basic endowment insurance is
generally not more than 20% of the total salary of the enterprise and 8% of the individual; (2)
The contribution rate of basic medical insurance is 6% of the total salary of employees, and
2% of individuals; (3) The settlement threshold of basic medical expenses for employees is
about 10% of the average annual salary of local employees, and the ceiling line is 6 times,
and the proportion is 90%.
58. Medical period:
0-5 years of work 5-10
years of service
3 months
6 months
Cumulative sick leave within
6 months
Cumulative sick leave within
12 months
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10-15 years of service,
15-20 years of service,
20-25 years of service,
25-30 years of service,
more than 30 years of
service
6 months
9 months
12 months
18 months
24 months
Cumulative sick leave within
12 months
Cumulative sick leave within
15 months
Cumulative sick leave within
18 months
Cumulative sick leave within
28 months
Accrued sick leave within 30
months
Note: Sick pay or sickness relief must not be less than 80% of the minimum wage. The
period of suspension with pay for work-related injuries shall generally not exceed 12
months, and in special circumstances, it shall not be extended for more than 12 months.
Living care expenses are paid according to 3 levels: 50%, 40%, and 30% of the average
salary in the previous year.
59. The standard of one-time work-related death allowance shall be 20 times the per capita
disposable income of urban residents in the previous year. 60. Criteria for receiving
unemployment insurance benefits:
Premiums for 1-5 years and premiums for 5-10
years
The premium is more than 10 years
The maximum claim period is 12 months, the
maximum claim period is 18 months, and the
claim period is up to 24 months
Note: If the unemployed person is re-employed and re-unemployed, the period for the
unemployed person to receive unemployment insurance money shall be paid according to the
cumulative amount before unemployment
The number of years of unemployment insurance premiums (after deducting the number of
years of unemployment insurance premiums that have been paid).
Legal system of payment and settlement
1. The date, amount and name of the payee on the bill shall not be changed, and the
changed bill shall be invalid. The amount is large
If the lowercase is inconsistent, the ticket is invalid.
2. The settlement account of the unit bank is divided according to the purpose: (1) basic
account (2) general account (3) special account (4) temporary
account, of which (1) (4) is subject to the approval system, (2) the filing system is applicable
(filing within 5 working days from the date of account opening),
Payment can be processed after 3 working days, and account changes should be made within
5 working days. 3. Account cancellation order: general account→ special account → temporary
account
4. Basic deposit account: used for daily transfer settlement and cash receipt and payment,
only one unit can be opened
5. General deposit account: Outside the bank where the basic deposit account is opened, it
needs to be set up for borrowing and other settlements. To open an account, you need to
provide a basic deposit account opening permit and a loan contract, and you can deposit
cash, but you cannot withdraw cash.
6. Special deposit account: funds must be transferred and deposited by the basic deposit
account, and cash receipts and payments are not handled
Accounting for extra-budgetary funds, securities transaction settlement funds, futures trading
margins and special deposits for trust funds
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No cash withdrawal is allowed from the account, and others need to be approved or handled
in accordance with regulations.
7. Zero balance account of budget unit (transferable, cash withdrawal): direct payment or
authorized payment and settlement by the treasury
Calculate.
8. Temporary Deposit Account: (1) For the registration of capital verification and capital
increase verification, approval is not required (capital verification period
only collect but not pay).
(Valid for no more than 2 years) (2) The establishment of a temporary agency, and approval is
required for temporary business activities in other places.
9. Handling fees for acquiring business of commercial banks: (1) catering, hotels,
entertainment, jewelry, gold ornaments, arts and crafts
1.25% for sales, real estate and automobiles (capped at $80 per transaction). (2) Department
stores, wholesale (each cap
26 yuan) social training, intermediary services, travel agencies and scenic spot tickets
0.78%. (3) 0.38% of people's livelihood categories such as supermarkets, large-scale
warehouse stores, water, electricity and gas payment, refueling, and transportation
ticketing.
10. Prepaid card: The limit of registered prepaid cards is 5000, and the limit of anonymous
prepaid cards is 1000. Prepaid cards do not have an overdraft feature. Handling of prepaid
cards: one-time purchases of more than 5,000 yuan for units and more than 50,000 yuan for
individuals should be settled by bank transfer and not cash. Purchasers are not allowed to use
credit cards to purchase prepaid cards. 11. The registered prepaid card can be redeemed after
3 months, and the unit can only redeem it if it is purchased by the unit.
12. Settlement method (1) Remittance: The remittance receipt can only be used as the basis
for acceptance by the remitting bank, and cannot prove that the money has been remitted to
the beneficiary's bank. The collection notice is the voucher for the bank to collect the money
into the payee's account (the money that cannot be delivered within two months should be
actively refunded) (2) Collection and acceptance (non-local): the starting point is 10,000, and
the starting point of each transaction in the Xinhua bookstore system is 1000, and the money
for consignment, consignment and credit sales of goods shall not be collected and accepted,
and must be state-owned enterprises, supply and marketing cooperatives, and urban and
rural collective-owned industrial enterprises with good management and review and approval
by the opening bank. The commitment period for document inspection payment is 3 days
(from the day after the issuance of the commitment notice). Inspection and payment
The commitment period is 10 days from the day after the delivery notice. (3) If the payer fails
to notify the bank in writing of the payment within 3 days from the day after receiving the
notice (in the same city or in another place) on the day of receiving the notice, it shall be
deemed to have agreed to the payment. (4) Domestic letter of credit: the procedure is the
same as the entrusted collection, only applicable to commodity transactions between
domestic enterprises, irrevocable, non-transferable, when the issuing bank decides to accept,
the applicant will be charged a deposit of not less than 20% of the amount of the issuance,
and the maximum period shall not exceed 6 months, and the excess can be overpaid, but the
excess part shall be treated according to the bank loan.
13. Non-basic parties to the instrument: acceptor, endorser, endorsee and guarantor
14. Remedies for the loss of bills: (1) Report loss and stop payment (the payer shall stop
payment from the date of receipt of the notice of loss report and stop payment.)
If the people's court does not receive the notice of stop payment within 12 days, the loss
report and stop payment will become invalid from the 13th day); (2) Publicity and reminder
(the subject must be the last bearer, and during the publicity and reminder period, the domestic
bill shall be within 60 days from the date of issuance
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Foreign-related bills shall not exceed 90 days), ordinary litigation. 15. Statute of limitations for
negotiable instrument rights
Commercial bills
Bank draft, cashier's
check
cheque
recourse
Recourse
Exercise
object
Drawer,
acceptor
The
drawer, the
drawer, the
front hand
Forehand
Start date,
expiration
date, ticket
issuance
date, ticket
issuance
date
Acceptanc
e/payment
rejected
day
The date of
settlement
may be
filed
The date of
the lawsuit
aging
2 years
2 years
6 months
6 months
3 months
16. For bills to be paid at sight, the payment shall be prompted to the payer within 1 month
from the date of issuance, and the payment shall be made on a fixed date, and the bills shall be
paid regularly after the ticket is issued or paid regularly after the ticket is issued, and the
payment shall be prompted to the acceptor within 10 days from the maturity date. 17. The right
of the bearer's instrument: the right to request payment (the first time) and the right of
recourse (the second time)
18. Endorsement: (1) Transfer endorsement: for the purpose of transferring the rights of the
instrument; (2) Non-transfer endorsement: Entrustment collection endorsement
and pledge endorsements
Note: If the endorsement does not record the date, it shall be deemed to be endorsed
before the maturity date of the bill.
19. The endorsement shall not be conditional, if it is conditional, the attached condition does
not have the right on the instrument, and the instrument
An endorsement that transfers a portion of the amount or an endorsement that transfers the
amount of the instrument to two or more persons separately is invalid
Book. "Restricted endorsement" means that the "non-transferable" endorsement is
recorded, and if it is transferred, it does not have the effect of negotiable instrument law
force (right to demand payment, right of recourse), only with the right to assign ordinary
creditor's rights.
20. Acceptance is only applicable to commercial bills, and the payer's acceptance of bills of
exchange shall not be conditional, if conditions are attached, it shall be deemed to
Refusal of acceptance.
21. If the guarantor does not record the "name of the guarantor" on the bill or sticky note:
the acceptor is the guarantor for the bill that has been accepted; For unaccepted bills, the
drawer is the guarantor. If the guarantee date is not recorded, the date of issuance of the
ticket shall be the guarantee date, and the guarantee shall not be conditional, and the
conditional shall not affect the guarantee liability for the instrument.
Summary of conditions: (1) Endorsement: When the endorsement is conditional, the
condition itself is invalid, and the endorsement is valid. (2) Guarantee: The guarantee of the
bill cannot be conditional, if the guarantee is conditional, the condition is invalid, and the
guarantee is valid. (3) Acceptance: Conditional, deemed to be a refusal of acceptance.
22. The first recourse of the bill is 6 months, and the recourse is 3 months.
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23. The bank draft can be used for transfer, and the cash can be withdrawn by filling in the
"cash word"; If the applicant or the payee is a unit, the "cash" shall not be filled in on the
endorsement of the bank draft application. The prompt payment period of the bank draft is
1 month from the date of issuance, and the bank draft and the notice of settlement shall be
submitted at the same time when the prompt payment is made, which is applicable to
settlement in other places, and the drawer is the bank.
24. The payment term of the commercial draft shall be within 10 days from the due date of the
bill, and the payment period shall not exceed 6 months; If the payer fails to notify the bank of
payment within 3 days from the day after receiving the payment notice from the opening bank, it
shall be deemed that the payer has promised to pay.
25. The accepting bank of the bank acceptance draft shall charge a handling fee of 5/10,000.
The accepting bank did not make a statement to the drawer
Interest is charged at the rate of 5/10,000 per day on the amount of the bill of exchange
paid (i.e. the amount advanced by the bank).
26. For the discounting of commercial bills, if the acceptor is in a different place, the term of
the discount and the calculation of the interest on the discount shall be added to the transfer
period of 3 days. The discount period is from the date of its discount to the maturity date of
the bill. The actual discount amount is calculated according to the par amount minus the
interest from the discount date to the 1 day before the maturity of the bill.
27. Cashier's check: the settlement of funds in the same clearing area (with check), which
can be used for transfer, and the cash can be withdrawn with the word "cash" (the bill is
lost, and the "loss report and stop payment") can be adopted), and the prompt payment
period of the bill shall not exceed 2 months, and the bank shall not issue a cash cashier's
check for the unit.
Summary of note dates:
Bill type: Bank draft,
commercial draft, check
Cashier's check
Prompt payment
deadlines
1 month from the
date of ticket
issuance
Within 10 days
from the maturity
date of the note
Within 10 days
from the date of
ticket issuance,
within 2 months
from the date of
ticket issuance
Bill statute of limitations
2 years
2 years
6 months
28. If the drawer issues a blank check and the signature does not match the signature
reserved by the bank, the check shall be returned, and the drawer shall be fined 5% but not
less than 1,000 yuan according to the face value; The bearer has the right to claim
compensation from the drawer for 2% of the amount of the cheque.
Legal system of value-added tax and consumption
tax
1. Identification of general taxpayers: sound accounting, sales of 5 million for 12 consecutive
months. 2. Deemed sale of goods: (1) Delivery of goods to other units or individuals for
consignment.
(2) Sales of consignment goods.
(3) Taxpayers who have two or more institutions and implement unified accounting shall
remove the goods from the
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One establishment is transferred to another institution for sale, except where the relevant
institution is located in the same county (city).
(4) The use of self-produced or commissioned processing goods for non-VAT taxable items.
(5) Use self-produced and commissioned processing goods for non-VAT taxable items.
(6) Provide self-produced, commissioned processing or purchased goods to other units as
investment
or sole proprietorship.
(7) Distribute self-produced, commissioned processing or purchased goods to shareholders
or investors.
(8) Giving self-produced, commissioned processing or purchased goods to other units or
individuals free of charge.
(9) The provisions of the pilot project of "replacing business tax with value-added tax" shall be
deemed to be the sale of services, intangible assets or immovable
Give birth.
Summary: "Purchased goods" used for non-taxable items, collective welfare, and personal
consumption are not deemed to be sold; If it is used for investment, distribution, or gifting, it
will be regarded as a sale.
3. Mixed sales: there is a close "subordinate relationship".
4. Concurrent sales: no "subordination".
5. The "transfer" in the process of asset restructuring is not subject to VAT.
6. The sale of fixed assets purchased or self-made before December 31, 2008 used by
oneself shall be levied VAT at a rate of 3% minus 2% according to the simplified method;
For non-simple tax calculation, VAT will be levied at half of the 4% levy rate (tax payable
= tax-included sales / (1+4%)*4%*50%); Resales purchased after December 31, 2008
are taxed at the normal applicable rate. Once the simplified method is selected, it cannot
be changed for 3 years. (For general taxpayers)
7. Small-scale taxpayers sell their used fixed assets, the levy rate is 2%, and the levy rate
is 3% for items other than fixed assets (tax payable = tax-included selling
price/(1+3%)*2%). Other individuals who sell items that they have used are exempt from
tax.
8. When doing the question, the price in the ordinary invoice is generally the tax-included
amount; The "sales" in the special invoice do not include tax; The retail sales and retail
price must include tax. "Non-VAT taxable services" in mixed sales, such as installation fees,
are treated as tax-inclusive income.
9. Determine whether the sales amount and the discount amount are combined to collect
VAT: if it is on the same invoice, the discount will be followed
after the sale is taxed; If not on the same invoice, the discount amount is taxed together
with the sales amount.
10. For trade-in business, the sales amount is generally determined according to the selling
price of the new goods, and the replaced goods are regarded as purchased goods;
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For gold and silver jewellery, VAT can be levied on the actual price charged excluding tax.
11. The amount of principal repayment expenses shall not be deducted from the
determination of principal repayment sales.
12. Barter: The sales amount issued by oneself and the purchase of the receipt are treated,
if it is a general taxpayer,
The special ticket received can also be deducted from the input.
13. The amount of freight that is allowed to be deducted refers to the invoice issued by the
transport unit indicating "freight and construction fund".
Note: Whether the input tax on freight can be deducted depends on the input tax on the
goods.
14. The "abnormal loss" under the new provisions is limited to the loss caused by
"mismanagement", excluding the loss
Losses caused by natural disasters.
15. The input tax of the components of the building or structure (drainage, heating, sanitation,
ventilation, lighting, communication, gas, fire protection, central air conditioning, elevator,
electrical, intelligent building equipment and supporting facilities) shall not be deducted from the
output tax, because it is not the equipment directly involved in the production, which constitutes
the cost of the building.
16. The maximum invoicing limit of value-added tax: less than 100,000 yuan → be approved
by the district and county tax authorities
The 1 million yuan version → the municipal tax authorities and the provincial tax authorities
with more than 10 million yuan → provincial tax authorities
17. Commonly used tax rate table
Sale or import of goods
Processing, repair and repair services
Leasing services for tangible movable
property
Transportation services, basic
telecommunications services
Life-related services, agricultural products
Value-added telecommunication services,
loan and financial services
Construction and installation, engineering
services
13%
13%
9%
9%
9%
6%
9%
17. (Consumption Tax) From May 1, 2009, an ad valorem tax (5%) will be levied on cigarette
wholesale, cigar cigarettes
and tobacco are subject to proportional tax rates.
18. Gold and silver jewelry is taxed at retail (5%), and other important jewelry and jewelry
and jade are taxed in the production, import,
Entrusted processing link tax (10%).
19. Implement a fixed tax rate: refined oil, beer, and rice wine
Compound tax rate: cigarettes and liquor
Proportional tax rate: most taxable consumer goods
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20. The determination of consumption tax sales does not include: (1) the VAT payable to the
purchaser
(2) At the same time, meet certain conditions on behalf of the freight
Note: Consumption tax is included in the price, and VAT is added to the price. The basis for
calculating the ad valorem rate is including consumption tax and not exclusive
Sales made by VAT.
21. If there is no sales price of the same kind of consumer goods, the tax shall be calculated
and paid according to the taxable value of the composition;
(1) Ad valorem rate:
Component Taxable Value = (Cost + Profit) / (1 - Consumption Tax Proportional Tax Rate)
= Cost * (1 + Cost Profit Margin) / (1 - Consumption Tax Proportional Tax Rate)
(2) Compound taxation:
Component taxable value = (cost + profit + self-produced and self-used quantity * fixed tax
rate) / (1 - consumption tax proportional tax
rate)
22. Dutiable value refers to the taxable value of customs duties as approved by the Customs
23. If the consumption tax has been paid for the raw materials of the taxable products, the
consumption tax paid shall be deducted for the finished products
(principle of non-double taxation); However, there are no tax deduction provisions: wine,
refined oil (except naphtha and lubricating oil).
Outside), cars, high-end watches, yachts. Consumer goods other than naphtha are not
deductible across tax items.
Legal system of corporate income tax and
individual income tax
1. Sole proprietorship enterprises and partnership enterprises are not taxpayers of
enterprise income tax.
2. For enterprises that do not have an establishment in China but have income derived from
China, the income tax rate is as follows:
20%。
3. Determination of revenue from the sale of goods: (1) If the method of advance payment
is adopted, the revenue shall be recognized when the goods are issued, except for the
construction period >=12 months; (2) If other taxpayers are entrusted to sell goods on
behalf of other taxpayers, and the list of consignment sales is not received, the revenue
shall be recognized on the day when the consignment goods have been issued for 180 days;
(3) If the goods are sold by way of after-sales repurchase, they shall be confirmed according
to the sales of the goods, and they shall be treated as purchases when they are recovered.
(4) If the goods are sold by way of financing, the money received shall be included in the
"long-term loan/long-term payable", and the difference between the goods received and
the sale shall be included in the "financial expenses"; (5) The old goods (except gold and
silver jewelry) are sold for new things, and the old things are treated as purchases, but the
input tax cannot be deducted (special VAT invoices cannot be obtained); (6) Commercial
discounts are not reflected in the books, and cash discounts are regarded as "financial
expenses"; (7) Sales discounts and sales refunds shall be offset by the revenue from sales
of goods in the current period in the current period.
4. "Buy one get one free" is not a donation, and the total sales amount should be compared
to the fair value of each commodity
12
For example, the sales revenue of each item is apportioned.
5. Limits allowed for pre-tax deduction: (1) Property insurance: 15% of the balance of all
premium income after deducting surrender money
Calculate the limit; (2) Life insurance: 10% of the balance of the total premium income
after deducting the surrender payment; (3) Its
Other insurance companies: 5% of the balance of the total premium income after deducting
the surrender payment;
6. Pre-tax deduction standard: (1) The part of the employee welfare expenses incurred by
the enterprise that does not exceed 14% of the total wages and salaries is allowed to be
deducted. (2) The part of the trade union funds allocated by the enterprise shall not exceed
2% of the total wages and salaries, and shall be allowed to be deducted.
(3) Unless otherwise stipulated by the competent financial and taxation departments of the
State Council, the part of the employee education expenses incurred by the enterprise shall
not exceed 2.5% of the total wages and salaries, and shall be allowed to be deducted; The
excess amount is allowed to be carried forward and deducted in subsequent tax years. (4) The
pre-tax deduction limit for public welfare donations is within 12% of the total profit. (5)
Business entertainment expenses: 60% of the amount incurred, but shall not exceed 5/1000
of the operating income (whichever is lower of the two indicators). (6) Deduction limit for
publicity expenses: the part that does not exceed 15% of the turnover income of the current
year can be deducted, and the excess part can be carried forward and deducted in
subsequent years. (7) Lease fee: operating lease is deducted evenly according to the lease
period; Depreciation of financial leases shall be deducted in installments.
7. Prohibited pre-tax deductions: (1) dividends, bonuses and other equity investment income
paid to investors; (2) administrative fines; (3) Sponsorship expenses (the part of public
welfare donations that exceed 12% of the total profits); (4) unapproved reserve expenditures;
(5) management fees between parent and subsidiary;
8. The part of the employee education expenses and publicity expenses that exceed the
deduction standard can be deducted in the following years.
9. The land that is separately valued as a fixed asset shall not be deducted from
depreciation.
10. Tax exemption and preferential treatment: (1) Interest income from treasury bonds
(2) Equity investment income such as dividends and bonuses between eligible resident enterprises.
(Even.)
Renew for more than 12 months)
(3) A non-resident enterprise obtains shares from a resident enterprise that has an actual
connection with the institution or the market
Interest, dividends and other equity investment income. (Held continuously for more than 12
months)
(4) Eligible non-profit organization income.
11. Income from agricultural, forestry and animal husbandry projects is exempt from
enterprise income tax.
12. Flowers, tea, other beverage crops, spice crops, and fisheries shall be subject to
enterprise income tax at half.
13. Qualified income from technology transfer: the part not exceeding 5 million yuan is
exempt from enterprise income tax; exceed
For the part of 5 million, the enterprise income tax will be reduced by half.
13
14. Criteria for judging small and micro enterprises: (1) The annual tax payable is less than 3
million; (2) The number of employees is less than 300; ③
The asset size is less than 50 million;
15. Income tax rate for small and micro enterprises: For the part of the annual taxable income of
small and low-profit enterprises not exceeding 1 million yuan, it shall be included in the taxable
income at a reduced rate of 25%, and the enterprise income tax shall be paid at the rate of 20%;
For the part of the annual taxable income exceeding 1 million yuan but not exceeding 3 million
yuan, it shall be included in the taxable income at a reduced rate of 50%, and 20%
The tax rate is subject to corporate income tax.
16. For high-tech enterprises that need to be supported by the state, the enterprise income
tax shall be levied at a reduced rate of 15%.
17. Additional deduction: (1) For R&D expenses incurred in the development of new
technologies, new products and new processes (if no assets are formed), 50% of the R&D
expenses shall be deducted to reduce the taxable income; If an intangible asset is formed, it
shall be amortized before tax at 150% of the cost.
(2) 100% of the wages paid for the placement of disabled persons shall be deducted.
18. Deduction of income: The income obtained by enterprises from the production of products
that are not restricted or prohibited by the state and meet the relevant national and industry
standards shall be included in the total income at a reduced rate of 90% if the resources
specified in the "Catalogue of Enterprise Income Tax Incentives for Comprehensive Utilization
of Resources" are used as the main raw materials and produced by the state.
19. Individual income tax system: The travel expenses exempted from non-employees shall
be taxed according to the "income items of labor remuneration".
20. Income from stock transfer shall be temporarily exempted from individual income tax.
21. Table 1 of the latest individual income tax withholding tax rate table (income from
wages and salaries of individual residents)
series
1 2 3 4 5 6 7
Cumulative
withholding and
withholding of
taxable income
Not more than
36000, not more
than 144000, not
more than 300000,
not more than
420000, not more
than 660000, not
more than 960000,
more than 960000
Withholdin
g rate
3%
10%
20%
25%
30%
35%
45%
Quick calculation of
deductions
0
2520 16920 31920
52920 85920 181920
22. Table 2 of the latest individual income tax withholding tax rate table (income from
personal labor remuneration of residents)
series Cumulative withholding and withholding of taxable income
Withholding rate Quick calculation of deductions
1 Not greater than 20,000 20% 0
14
2
3
No
more
than
50,0
00
and
more
than
50,0
00
30%
40%
2000
7000
23. Table 3 of the latest individual income tax withholding tax rate table (wages, salaries,
author's remuneration and royalty income of non-resident individuals)
Progression Cumulative withholding and withholding of taxable income Withholding
rate Quick calculation of deductions
1 2 3 4 5 6
7
Not
mor
e
than
3000
, not
mor
e
than
1200
0,
not
mor
e
than
2500
0,
not
mor
e
than
3500
0, not
more than
55000, not
more than
80000,
more than
80000
3%
10%
20%
25%
30%
35%
45%
0 210 1410 2660 4410
7160 15160
24. Table 4 of Individual Income Tax Rate Table (Business Income)
series
1 2 3
4
5
Taxable
income
(inclusive)
Tax)
Not more
than
30,000, not
more than
90,000, not
more than
300,000
Not more
than 500000
and more
than 500000
Taxable
income
(exclusive
Tax)
Not more
than 28500,
not more
than 82500,
not more than
250500
Not greater
than 390500
and greater
than 390500
rate
5%
10%
20%
30%
35%
Quick calculation of
deductions
0 1500 10500
40500
65500
15
