Analysis And Suggestions On The Problem Of Gratuitous Occupation Of Funds

< p > (1) phenomenon and reason analysis.

The free use of funds is the act of not paying interest and using funds.

This phenomenon also exists in affiliated enterprises or related enterprises.

The main performance is that an enterprise occupies the funds of another enterprise without compensation. The two sides do not pay or collect interest. It is like "Zhou Yu is willing to fight for a war."

This phenomenon is more common in the companies with "mother child" relationship in China.

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< p > (2) behavior and policy analysis.

Interest is payable on the use of funds.

This is just like "debt repayment".

Therefore, in business practice, borrowing funds without paying interest or no interest is a tenable reason.

According to < a href= "//www.sjfzxm.com/news/index_c.asp > > /a > 2008 (86), the Circular of the State Administration of Taxation on the issue of handling enterprise income tax on payment of services between parent and subsidiary companies stipulates: < /p >

< p > 1, the parent company provides all kinds of < a href= "//www.sjfzxm.com/news/index_c.asp" > Service > /a > for its subsidiary company (hereinafter referred to as subsidiary company). The price of the service should be determined according to the fair paction principle between the independent enterprises, as the normal labor cost of the enterprise is < a href= "//www.sjfzxm.com/news/index_c.asp" > tax treatment < /a >.

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< p > parent and subsidiary companies have no right to collect fees according to business pactions between independent enterprises. The tax authorities have the right to adjust them.

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< p > two, the parent company provides all kinds of services to its subsidiaries, the two sides should sign a service contract or agreement, stipulate clearly the contents of providing services, the standard and amount of fees, etc., where the service charges incurred in accordance with the above contract or agreement shall be declared and paid by the parent company as the business income, and the subsidiary shall be deducted as the cost before the tax.

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< p > providing funds as a financing service, the parent company must collect interest from independent enterprises, invoke and pay taxes according to law (business tax and enterprise income tax), and the eligible interest payments of subsidiary companies can be regarded as the forefront of taxation at cost and expense.

Although the tax law does not specifically stipulate the need to pay interest on financing loans between other affiliated enterprises, it should be carried out in accordance with the document No. 86 of the state tax [2008].

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< p > (3) handling suggestions.

In view of the phenomenon of unauthorized occupation of funds between affiliated enterprises, we propose the following: < /p >

< p > 1) we should adjust the behavior of unpaid occupation of funds according to the tax law and guard against the risk of being punished.

However, how much interest can be charged can be stipulated by both parties.

But remember that the general spirit of the tax law is that income must be taxed, and the expenditure is eligible to allow deductions.

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< p > 2) if a subsidiary takes up the funds of the parent company without compensation, the parent company may replace the capital occupied by the parent company for investment because of its stock relationship.

This does not involve interest payments.

If the corporate income tax rates of both parties are equal, they will not increase the tax burden of corporate income tax as a whole.

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< p > 3) if there is a buying and selling relationship between the two parties, the funds that can be freely occupied can be changed into buying and selling contracts through the purchase and sale contracts, which are respectively hung on the "advance payment" and "advance accounts receivable" of the two parties.

Whether the interest is added to the sum can be determined by the two parties in the contract independently. There is no rigid provision in the tax law.

Or on credit sale, the party who needs the money does not pay the loan, and both sides do the bill processing, so that the capital demand side can also get a "interest free" loan.

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