Urban construction tax is 7% of the value-added tax payable in this period, education surcharge is 3% of the value-added tax, and local education surcharge is 1%. There will be small differences in different regions, depending on the local tax rate.
Calculate the accounting entries of urban construction tax, education surcharge and local education fee payable in this period:
Loan: taxes payable-urban construction tax payable
Loan: tax payable-surcharge for education payable
Loan: taxes payable-surcharges payable for local education.
Extended data:
According to the relevant provisions of the current Provisional Regulations on Business Tax and its detailed rules for implementation, it is deemed that a unit or individual has donated real estate or land use rights to other units or individuals free of charge.
1. If real estate is donated between close relatives and people who have the relationship of maintenance and support, and the real estate is obtained through inheritance or bequest, the business tax shall be exempted.
Article 2 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Several Tax Exemption Policies for Personal Financial Commodity Trading (Cai Shui [2009]11No.) stipulates that individuals who donate real estate or land use rights free of charge are temporarily exempt from business tax in any of the following circumstances:
(1) Divorce property division;
(2) Free gifts to spouses, parents, children, grandparents, grandchildren, grandchildren, brothers and sisters;
(3) Giving free gifts to the dependents or dependents who have direct maintenance or maintenance obligations;
(4) The legal heir, testamentary successor or legatee of the house property right legally acquired after the death of the owner of the house property right.
2. If real estate is donated between others, business tax shall be paid according to law. However, if the property donated by others reaches a certain number of years and meets the conditions for exemption from business tax, it can still be exempted from business tax. For example, individuals who donate houses that have been purchased for five years can be exempted from business tax.
In practice, it is difficult to accurately calculate the added value or additional value of commodities in the process of production and circulation. Therefore, China also adopts the method of tax deduction, which is a widely used method in the world. That is, according to the sales of goods or services, the sales tax is calculated at the prescribed tax rate, and then the value-added tax paid when obtaining goods or services is deducted, that is, the input tax, and the difference is the taxable amount of the value-added part. This calculation method embodies the principle of taxation according to value-added factors.
References:
Baidu Encyclopedia-Business Tax Baidu Encyclopedia-VAT