After the revision of the declaration form： ten different types of enterprises, each with its own emphasis.

A few days ago, State Taxation Administration of The People’s Republic of China issued the Announcement on Revising the Annual Tax Return of Enterprise Income Tax (State Taxation Administration of The People’s Republic of China Announcement No.24, 2020, hereinafter referred to as Announcement No.24), which revised some forms and filling instructions of the annual tax return of enterprise income tax. The author reminds,When reporting the final settlement of enterprise income tax in 2020, ten different types of enterprises have different concerns at the practical level..

In 2020, according to the decision-making arrangements of the CPC Central Committee and the State Council on supporting the prevention and control of the epidemic situation in COVID-19 and the enterprises’ resumption of work and production, the Ministry of Finance and the State Administration of Taxation actively assisted the enterprises in industries greatly affected by the epidemic situation to resume work and production, and issued a number of enterprise income tax policies. Announcement of the Ministry of Finance and the State Administration of Taxation on supporting the tax policies related to the prevention and control of pneumonia infected in novel coronavirus (Announcement No.8 of the Ministry of Finance and the State Administration of Taxation in 2020, hereinafter referred to as Announcement No.8) and Announcement of the Ministry of Finance and the State Administration of Taxation on the tax and fee support policies for industries such as movies (Announcement No.25 of the Ministry of Finance and the State Administration of Taxation in 2020) stipulate that the five major industries enterprises that are greatly affected by the epidemic are transportation, catering, accommodation and tourism.

In the revision of this declaration form, the fifth column "Loss amount transferred from merger and division-8 years can be compensated" was added in the Detailed List of Compensation for Losses of Enterprise Income Tax (A106000). At the same time, the code table of "Enterprise Types for Compensation for Losses" was updated, and options such as "Enterprises in industries affected by the epidemic" and "Enterprises in the film industry" were added. According to Article 10 of the Announcement of State Taxation Administration of The People’s Republic of China on Supporting the Prevention and Control of Pneumonia Infected by novel coronavirus (State Taxation Administration of The People’s Republic of China Announcement No.4, 2020), enterprises in difficult industries that are greatly affected by the epidemic should apply the policy of extending the carrying-over period of losses, and should submit the Policy Statement on Applying the Extension of Carrying-over Period of Losses through the Electronic Taxation Bureau when the enterprise income tax is settled in 2020.

Announcement No.8 stipulates that the related equipment newly purchased by the key materials production enterprises for epidemic prevention and control in order to expand production capacity is allowed to be deducted from the current cost before enterprise income tax. Previously, the Notice of the Ministry of Finance and the State Administration of Taxation on the Policy of Deducting Enterprise Income Tax on Equipment and Appliances (Cai Shui [2018] No.54) stipulated that the newly purchased equipment and appliances of enterprises with a unit value of no more than 5 million yuan were allowed to be deducted once before tax. On this basis, Announcement No.8 made it clear that the newly purchased related equipment with a unit value of more than 5 million yuan by the key materials production enterprises for epidemic prevention and control can also be deducted once before tax.

In the revision of this declaration form, the 12th line of the List of Assets Depreciation, Amortization and Tax Adjustment (A105080) was added "One-time deduction of equipment with a unit price of more than 5 million yuan for key materials for epidemic prevention and control", which facilitated the declaration of key materials for epidemic prevention and control.

The first category: public welfare donation expenditure for responding to the COVID-19 epidemic. Announcement of the Ministry of Finance and the State Administration of Taxation on Supporting the Prevention and Control of Pneumonia Infected in novel coronavirus (Announcement No.9 of the Ministry of Finance and the State Administration of Taxation, 2020) stipulates that cash and articles donated by enterprises through public welfare social organizations or state organs such as people’s governments at or above the county level and their departments are allowed to be deducted in full when calculating taxable income; Enterprises directly donate articles to hospitals that undertake epidemic prevention and control tasks to deal with the pneumonia epidemic in novel coronavirus, allowing full deduction when calculating taxable income.

Category II: Expenditure on funds, materials and services sponsored and donated by Beijing 2022 Winter Olympics, Winter Paralympics and Test Tournaments. The Notice of the General Administration of Customs of the State Administration of Taxation of the Ministry of Finance on the Tax Policies for the Beijing 2022 Winter Olympics and Paralympics (Caishui [2017] No.60) stipulates that the expenses of funds, materials and services sponsored and donated by enterprises, social organizations and groups for the Beijing 2022 Winter Olympics, Paralympics and test matches shall be fully deducted when calculating the taxable income of enterprises. Although this is not a new policy, it is the first time to fill in the List of Donation Expenditure and Tax Adjustment (A105070) as a special item.

Category III: Expenditure on funds, materials and services sponsored and donated by Hangzhou 2022 Asian Games, Asian Para Games and their test matches. The Announcement of the General Administration of Customs of the State Administration of Taxation of the Ministry of Finance on the Tax Policy of Hangzhou 2022 Asian Games and Asian Para Games (Announcement No.18 of the Ministry of Finance, 2020) stipulates that the funds, materials and service expenditures sponsored and donated by enterprises, social organizations and groups for Hangzhou 2022 Asian Games and Asian Para Games and their test matches shall be fully deducted when calculating the taxable income of enterprises.

The revision of this declaration form has optimized the form structure of the List of Donation Expenditure and Tax Adjustment (A105070). For the part of "Full Deducted Donation for Public Welfare", by filling in the "Project" code from line 8 to line 10, it meets the requirements of "Donation for Poverty Alleviation", "Donation for Beijing 2022 Winter Olympics, Paralympic Winter Games and Test Tournament", "Donation for Hangzhou 2022 Asian Games" and "Support for novel coronavirus infection". If a taxpayer has more than one project, he can add the number of lines to fill in.

It should be reminded that the enterprise’s donation to support the prevention and control of pneumonia infected in novel coronavirus is divided into two situations: one is to donate through public welfare social organizations or state organs; The other is to donate directly to hospitals that undertake the task of epidemic prevention and control. These two expenditures must be reported separately by enterprises. At the same time, in addition to donating materials directly to hospitals undertaking epidemic prevention and control tasks, the donation acceptance letter issued by medical institutions can be used as the pre-tax deduction voucher, and the donation bills obtained from other types of donations must meet the requirements of the Announcement of the Ministry of Finance, the State Administration of Taxation and the Ministry of Civil Affairs on Relevant Matters Concerning Pre-tax Deduction of Public Welfare Donations (Announcement No.27 of the Ministry of Finance, 2020).

In order to continue to support and encourage the development of integrated circuits and software industries, the Ministry of Finance and the State Administration of Taxation jointly issued the Announcement on Corporate Income Tax Policies for Promoting the High-quality Development of Integrated Circuits and Software Industries (Announcement No.45 of the Ministry of Industry and Information Technology of the Development and Reform Commission of the Ministry of Finance and the State Administration of Taxation in 2020, hereinafter referred to as "Announcement No.45"), which made it clear for the first time that the line width of integrated circuits encouraged by the state is less than 28 nm (inclusive). And the integrated circuit manufacturing enterprises or projects with an operating period of more than 15 years are exempted from enterprise income tax from the first year to the tenth year, and according to different line widths and operating periods, it is clear that relevant entities can enjoy the benefits of "five exemptions and five reductions", "two exemptions and three reductions" and "five exemptions+10% preferential tax rate for successive years".

In the revision of this declaration form, the option of "28 nm" is added under "209 IC production project type" in the Basic Information Form for Annual Tax Declaration of Enterprise Income Tax (A000000), and the description of "208 software and IC enterprise type" is adjusted. The item "enterprise income tax reduction and exemption for integrated circuit production projects with a line width of less than 28 nm (inclusive)" was added from line 25 to line 27 in the List of Income Tax Reduction and Exemption (A107020). Line 28.4 "Policy of Enterprise Income Tax Reduction and Exemption for Integrated Circuit and Software Enterprises Encouraged by the State" and its subordinate lines are added to the List of Preferential Income Tax Reduction and Exemption (A107040), which is applicable to relevant integrated circuit and software enterprises.

At the same time, Announcement No.45 makes it clear that integrated circuit manufacturers whose line width is less than 130 nm (inclusive) encouraged by the state belong to the losses that have not been made up in the five tax years before the list year of integrated circuit manufacturers encouraged by the state, and are allowed to carry them over to the following years. The longest period of summary transfer shall not exceed 10 years. In response to this policy, the code list of "types of enterprises making up losses" in the List of Enterprise Income Tax Making Up Losses (A106000) was updated, and the option of "integrated circuit manufacturers with line widths less than 130 nm (inclusive)" was added.

In addition, in order to effectively reduce the burden of taxpayers’ filing, this time, the tax return was revised, and the data items of "Software and Integrated Circuit Enterprises’ Preferences and Details" (A107042) were reduced from 22 to 11, a decrease of 50%.

The Notice of the Ministry of Finance and the State Administration of Taxation on Preferential Policies for Enterprise Income Tax in Hainan Free Trade Port (Cai Shui [2020] No.31, hereinafter referred to as "Document No.31") stipulates that enterprise income tax shall be levied at a reduced rate of 15% for encouraged industrial enterprises registered in Hainan Free Trade Port and operating substantially. In response to this provision, line 28.3 of the List of Preferential Income Tax Reduction and Exemption (A107040) was added, "Enterprises encouraged by Hainan Free Trade Port are subject to enterprise income tax at a reduced rate of 15%". Article 2 of Document No.31 stipulates that the income obtained by newly-increased overseas direct investment of tourism, modern service industry and high-tech industrial enterprises established in Hainan Free Trade Port shall be exempted from enterprise income tax.

The revision of this declaration form changes the Basic Information Form for Annual Tax Declaration of Enterprise Income Tax (A000000) "the overseas income credit method selected in 203-1" to "the overseas income credit method selected in 203-1", and adds "the new information of overseas direct investment in Hainan Free Trade Port in 2003-2". At the same time, the "List of Income after Tax Adjustment of Overseas Income" (A108010) and "Income from New Overseas Direct Investment of Hainan Free Trade Port Enterprises" were added. At the same time, modify the description of the relevant data items in the List of Tax Credits for Overseas Income (A108000).

Document No.31 also stipulates that for enterprises established in Hainan Free Trade Port, newly purchased (including self-built and self-developed) fixed assets or intangible assets with a unit value of no more than 5 million yuan (inclusive) are allowed to be included in the current costs and expenses at one time and deducted when calculating taxable income, and depreciation and amortization are no longer calculated by year; If the unit value exceeds 5 million yuan, the depreciation and amortization period can be shortened or accelerated.

In accordance with this regulation, the Schedule of Assets Depreciation, Amortization and Tax Adjustment (A105080) adds the following lines: accelerated depreciation of fixed assets of enterprises in Hainan Free Trade Port, one-time deduction of fixed assets of enterprises in Hainan Free Trade Port, accelerated amortization of intangible assets of enterprises in Hainan Free Trade Port, and one-time amortization of intangible assets of enterprises in Hainan Free Trade Port.

In order to support the development of the new area, the Ministry of Finance and the State Administration of Taxation issued the Notice on the Income Tax Policy of Key Industry Enterprises in Lingang New Area of China (Shanghai) Pilot Free Trade Zone (Caishui [2020] No.38), which clarified the qualified legal person enterprises engaged in products (technologies) related to core links in key areas such as integrated circuits, artificial intelligence, biomedicine and civil aviation, and carried out substantive production or R&D activities in the new area, since the date of establishment.

In the revision of this declaration form, line 28.2 of the List of Preferential Income Tax Reduction and Exemption (A107040) was added, "Key industrial enterprises in Lingang New Area of Shanghai Pilot Free Trade Zone are subject to enterprise income tax at a reduced rate of 15%".

The Notice of the Intellectual Property Office of the Ministry of Finance and the State Administration of Taxation on the Pilot Policy of Technology Transfer Enterprise Income Tax in the Zhongguancun National Independent Innovation Demonstration Zone (Caishui [2020] No.61) stipulates that resident enterprises registered in the Zhongguancun National Independent Innovation Demonstration Zone shall be exempted from enterprise income tax if the eligible technology transfer income does not exceed 20 million yuan; The enterprise income tax will be levied by half for the part exceeding 20 million yuan. Based on this, the List of Income Exemptions and Preferences (A107020) revised the reporting rules of "IV. Qualified technology transfer projects" from line 10 to line 12, and distinguished between "general technology transfer projects" and "technology transfer projects in specific areas of Zhongguancun National Independent Innovation Demonstration Zone" for taxpayers to choose to report.

The Notice of the Securities Regulatory Commission of the Development and Reform Commission of the Ministry of Finance and the State Administration of Taxation on the Pilot Policy of Corporate Income Tax for Corporate Venture Capital Enterprises in Zhongguancun National Independent Innovation Demonstration Zone (Cai Shui [2020] No.63) stipulates that eligible corporate venture capital enterprises shall be exempted from corporate income tax according to the proportion of individual shareholders holding shares at the end of the year. Based on this, the list of preferential treatment for income tax reduction (A107040) added the line 32, "Eligible corporate venture capital enterprises reduce or exempt enterprise income tax according to the shareholding ratio of individual shareholders at the end of the year (the shareholding ratio of individual shareholders is _%)". It should be noted that when taxpayers fill in this line, they need to fill in the qualified proportion of individual shareholders at the end of the year, keep it to four decimal places, and fill in the percentage.

According to the financial accounting method of loan reserve business of financial enterprises, taking the "balance" of loan assets and reserves as the core data item, the form structure and reporting rules are redefined to better connect with the financial accounting method of enterprises. At the same time, the name of the original Schedule of Special Industry Reserves and Tax Adjustments (A105120) was changed to Schedule of Loan Loss Reserves and Tax Adjustments (A105120). The scope of reporting in the revised form has been greatly reduced, and only financial enterprises and small loan companies with loan loss reserves need to report.

In this revision, the contents of insurance companies, securities industry, futures industry and SME financing (credit) guarantee institutions in the original Schedule of Special Industry Reserves and Tax Adjustment (A105120) are adjusted to the Schedule of Tax Adjustment Items (A105000), and the special industry reserves are recorded in the 39th line of Table (A105000). In line 39, "special industry reserve", fill in the total amount from line 39.1 to line 39.7 (excluding line 39.3) of the special industry reserve adjustment item.

Since January 1, 2019, the government accounting standards system has been fully implemented in various administrative institutions at all levels across the country. The revision of this declaration form adds "800 Government Accounting Standards" to the Code Table of Accounting Standards or Accounting System Types. Institutions and social organizations that implement government accounting standards should choose the 800 code when choosing the applicable accounting system.