How To Make Good Use Of Policies And Tax Savings For Newly Established Branches To Purchase Automobiles

Since October 1, 2015, with the convenience of registration system reform, many enterprises have set up different branches in order to expand their businesses.

This article takes the purchase of cars by the new branch company of the parent company as an example to explain how to make good use of the policy to save taxes.

Case: a company located in a provincial capital city is engaged in goods processing and sales. It is a general taxpayer of value added tax. The enterprise income tax rate is 25%, and the preferential policy of enterprise income tax has not been enjoyed.

In October 2015, in order to expand sales, with the convenience of the reform of registration system of "three certificates integration", we planned to set up 6 branches without independent legal person in the province and outside the province.

The newly established branch is responsible for the marketing activities of the territory, and the sale of goods is still uniformly invoiced by a company.

The branch does not sell goods externally, it will not generate VAT output tax, and does not apply for a VAT general taxpayer.

The distance between a company and 6 branches in the province ranges from 300 km to 500 km, and the distance from the 6 branches outside the province ranges from 600 km to 1000 km.

In order to facilitate marketing, a company plans to purchase 24 cars for its subsidiaries, including 117 thousand yuan tax car, 12 minibus, and 12 business vehicles with a tax price of 351 thousand yuan.

When the company's Investment Committee deliberated on the preparatory work of the branch, it recommended that the vehicle purchase bill be responsible for vehicle management, and determined the supplier through the unified parity purchase method. It also proposed two options for the latter option. The plan was purchased by the company a, and it was provided to the branch after the card was located on the location of the company. The plan two was issued by the company a budget, which was purchased by the branch company and played on the local market.

In view of the two proposals put forward by the office, the finance department has made some suggestions after analysis.

Enjoy the preferential policies of the state for small displacement passenger cars.

1. vehicle purchase tax.

According to the first provision of the Ministry of Finance and the State Administration of Taxation on the reduction of the purchase tax on passenger cars for vehicles under 1.6 liters and below (fiscal 104 [2015] 104), the vehicle purchase tax on the passenger cars purchased at the rate of 1.6 liters or less from October 1, 2015 to December 31, 2016 is temporarily reduced by 5%.

Therefore, if a company plans to purchase 24 cars that meet the vehicle purchase tax reduction conditions and the same vehicle purchase price and vehicle purchase tax assessment price, it can pay less vehicle purchase tax of 12 x (10+30) x 5%=24 (10000 yuan).

2. vehicle and vessel tax.

According to the first paragraph 1 of the Circular of the Ministry of finance, the State Administration of Taxation and the Ministry of industry and information technology on the preferential policies for energy conservation and the use of new energy vehicles and vessels (fiscal 2015 [51], No. 51), the volume of sales permitted to be sold in China is less than 1.6 liters (including 1.6 litres) of gasoline and diesel passenger cars (including non plug-in hybrid passenger cars and dual fuel passenger cars); and half of the tax on vehicle and vessel is imposed.

If a company plans to purchase 24 cars, if it meets the requirements, it can reduce the vehicle and vessel tax by half.

Can the vehicle be considered tax in advance?

According to the provisions of the public security departments concerning the licensing of vehicles, the vehicles on the cards must provide purchase invoices and relevant documents matching the cards on the cards.

That is to say, the invoice obtained in the name of a company can only be signed at the place where the company is located, and the invoice obtained in the name of the branch can only be placed at the place where the branch is located.

According to the provisions of the Ministry of Finance and the State Administration of Taxation on annexing 2 of the notice on the introduction of the railway pportation and postal industry into the pilot scheme for the conversion of business tax to value added tax (fiscal 106 [2013] 106): the provisions of the relevant provisions on the pilot scheme for the conversion of business tax to VAT.

2. the original tax on the motorbike, motor vehicle and yacht, which is used by the general taxpayers of the original value-added tax, is allowed to be deducted from the output tax.

According to the regulations, the VAT general taxpayer's purchase of automobiles can be deducted from the value-added tax according to the unified invoice of motor vehicle sales.

If a company needs to deduct the VAT contained in the purchase of a car, it must obtain a unified invoice for motor vehicle sales in the name of a company. Since the branches are not general taxpayers of the value-added tax, the cars purchased in their name can not get the value added tax deduction.

Plan 1: the place where the company is located.

The vat of purchase of vehicles can be deducted, but there is a yearly cost of annual inspection.

1. vehicle pre tax deduction costs.

12 minibus, each containing tax purchase price of 117 thousand yuan, deductible value added tax 11.7 yuan (1+17%) x 17%=1.7 (10000 yuan), thereby reducing the cost of car purchase, enterprise income tax deduction cost is 11.7-1.7=10 (10000 yuan).

12 business vehicles, each containing tax purchase price of 351 thousand yuan, deductible value added tax 35.1 yuan (1+17%) x 17%=5.1 (10000 yuan), thereby reducing the cost of car purchase, enterprise income tax deduction cost is 35.1-5.1=30 (10000 yuan).

2. annual vehicle inspection fee.

The branch of the province, the vehicle used in the location of a company, the use of each branch, according to the local vehicle requirements to the location of a company to apply for annual inspection, with the shortest distance of 300 km analysis, annual inspection of gasoline consumption, travel expenses and time delay costs, the annual total of 2 thousand yuan per car, business vehicle 3 thousand yuan.

According to the use of cars for 10 years, the cost of each van and business car will be increased by 10 x 0.2=2 (10000 yuan) and 10 x 0.3=3 (10000 yuan) respectively.

The branch of the provincial branch of the company, if the vehicle is used at the location of a company, will be used by each branch to apply for the annual inspection according to the local vehicle requirements to the location of the company. The shortest distance is 600 kilometers. The annual consumption of gasoline, travel and time delay will be 5 thousand yuan per year and 7 thousand yuan for each commercial vehicle.

According to the use of cars for 10 years, the cost of each van and business car will be increased by 10 x 0.5=5 (10000 yuan) and 10 x 0.7=7 (10000 yuan) respectively.

3. the total cost of vehicle purchase and annual inspection is total.

The provincial branch company, each van 10+2=12 (10000 yuan), each business vehicle 30+3=33 (10000 yuan).

Outside the provincial branch, each van 10+5=15 (10000 yuan), each business vehicle 30+7=37 (10000 yuan).

Option two: the place where the branch is located.

The vat of purchase vehicles can not be deducted, but it can be checked annually in the local area without the expense of different site annual inspection. Therefore, the vehicle purchase tax included the pre tax deduction cost, 12 minibus, and each vehicle.

117 thousand yuan, the cost before enterprise income tax deduction is 117 thousand yuan; 12 business vehicles, each containing tax purchase price 351 thousand yuan, the enterprise income tax deduction cost is 351 thousand yuan.

Which plan is better?

The provincial branch company: 6 vans are used. The plan is 120 thousand yuan per vehicle, which is more than 117 thousand yuan of the plan two, and the scheme is two.

For the 6 commercial vehicles, the scheme is 330 thousand yuan less than the 351 thousand yuan of scheme two, and the first option is the first one.

The provincial branch company: the 6 vans used, the scheme one, 150 thousand yuan is greater than the 117 thousand yuan of the plan two, the choice plan two, by each branch the card is good.

The 6 business vehicles used, one 370 thousand yuan per unit more than 351 thousand yuan for the scheme two, the choice of two, from the various branches of the good.

We should also pay attention to the implementation of vehicle off-site annual inspection policy.

According to the spirit of the document issued by the Ministry of public security and the State General Administration of quality supervision, inspection and Quarantine on strengthening and improving the inspection of motor vehicles, the state is vigorously promoting different locations of motor vehicles.

Gradually allowing motor vehicle owners to conduct direct inspection at the location of the vehicle.

If the annual inspection can be carried out in different places in the province, the vehicles used by the branches in the province can be directly put on the cards by the company, thereby deducting the added value tax and reducing the purchase cost. If the annual inspection of the provinces (districts and cities) is carried out smoothly, the provincial branch companies can also directly play the cards by the company.

Comment:

The parent company's newly established branch offices and the enterprises that purchase automobiles.

Seemingly simple, careful analysis has many advantages.

1. pay attention to and enjoy the dividend policy of decentralization.

The reform of the registration system of "three cards and one license" has been implemented nationwide since October 1st, bringing more convenient services to the market players, shortening the registration time and reducing the cost of work.

Enterprises should actively enjoy the dividend policy of decentralization and decentralization, increase investment and enhance the vitality of enterprises.

2. pay attention to and enjoy the bonus of preferential tax policies.

In September 29th, the Executive Council of the State Council decided to promote the development of new energy and small displacement vehicles, and issued a series of preferential policies. When purchasing automobiles, enterprises can analyze and consider whether they enjoy these policy dividends.

3. pay attention to the details of the plan.

Through the comparison of the schemes for buying cars, the policy of vehicle restriction and annual inspection should be taken into account in advance.

It is necessary to avoid the loss of vehicles in the field due to the restriction of vehicles in the field.

If the vehicle is not restricted and can carry out off-site annual inspection, priority should be given to the purchase of vehicles with VAT deduction and reduced purchase cost.

4. tax matters.

The production and operation of enterprises are closely related to tax revenue. It is an important function of management accounting to pay taxes according to law and to actively enjoy the dividend policy of tax reform.

Enterprise financial personnel should take an active part in production and business activities, take account of them from the perspective of Finance and taxation, and offer suggestions and suggestions for enterprises to manage their businesses according to law.