After company's establishment process has been completed and Business License required, the next step is to do the tax reporting. If the tax work is delayed, it will not only affect the operation, but may also be fined or be blacklisted.
Next, We would like to share with you how to do the tax reporting , or say tax initialization work .
Step 1: Tax Information Collection
In some tax bureaus, the above three procedures can be done at the same time
Difference of taxation method
Difference of tax rate
Difference of declaration period
Difference of deduction of input invoice
4 Tips help to determine whether to apply for General Taxpayer
Cases analysis of VAT for Small-scale Taxpayer
Small-scale taxpayers usually declare quarterly, but can also apply for monthly declaration，VAT threshold is 100 thousand/month.
Consulting company “A” is Small-scale Taxpayer， from Jan. to Mar. 2019, the invoices were 150,000 RMB, 30,000 RMB and 110,000 RMB respectively. Monthly Declaration：Feb. is exempt from VAT, VAT of Jan. is 4500 RMB and additional tax is 540 RMB, VAT of Mar. is 3300 RMB and addition tax is 396 RMB, 8736 RMB totally for this quarter of VAT and additional tax.
Quarterly Declaration：Invoices for this quarter amounted to 290,000, it is not reaching the quarterly VAT threshold. No VAT and additional tax payable!!
Save 8736 RMB by quarterly declaration!
Consulting company “B” is Small-scale Taxpayer， from Jan. to Mar. 2019, the invoices were 90,000 RMB, 80,000 RMB and 160,000 RMB respectively. Monthly Declaration：Both January and February are exempt from VAT, only 5376 RMB VAT and additional tax declare on Mar. 5376 RMB totally for this quarter of VAT and additional tax.
Quarterly Declaration：The quarterly invoice amount is 330,000 RMB and the VAT declaration is 9900 RMB and additional tax is 1188 RMB, 11088 RMB totally for this quarter of VAT and additional tax.
Save 5712 RMB by monthly declaration!
Tax Planning Cases analysis of Small Low-Profit Enterprise
If the annual income tax payable is less than 1 million RMB of Small Low-Profit Enterprise, the income tax rate is 5%, if the tax payable is between 1 million to 3 million of Small Low-Profit Enterprise, the tax payable is 10%