The third tax related risk point that construction enterprises should pay attention to: lack of legal and effective pre tax deduction

Spherical Head Anchor

At the same time, they should pay attention to whether the obtained invoices comply with the regulations, whether the face information is consistent with the economic business, whether they are invalid invoices, etc.

Construction enterprises have a long project cycle and usually employ a large number of contract workers and temporary workers.

Those who do not need to register tax registration or engage in small sporadic business operations according to law shall pay the expenses of the tax authorities’ invoices or collection receipts and internal certificates as pre tax deduction certificates, and the receipts should include the name of the receivables, personal names and ID number, the items of expenditure, the amount of receivables, and other related information.

Risk Description: according to Article 5 of the measures for the administration of enterprise income tax pre tax deduction vouchers (Announcement No.

At the same time, Article 6 of the announcement stipulates that an enterprise shall obtain a pre tax deduction certificate before the end of the final settlement period specified in the enterprise income tax law of the current year.

Suggestions on risk prevention and control: for construction enterprises, whether they can obtain legal and effective pre tax deduction vouchers directly determines the costs and expenses.

In some cases, they fail to obtain legal and effective pre tax deduction certificates for some scattered labor costs and subcontracting costs in time, but at the same time, they deduct the corresponding expenses in violation of regulations, which is prone to tax related risks.

Therefore, during business transactions, enterprises should pay attention to whether upstream suppliers or service providers can issue invoices in time.

28, 2018 of the State Administration of Taxation), if an enterprise incurs expenses, it shall obtain a pre tax deduction voucher as the basis for deducting relevant expenses when calculating the taxable income of enterprise income tax.

Source: Shandong Keda tax agent office..


Related Post