Formal features:
The main forms of government subsidies are: financial allocation, financial discount, tax rebate and free allocation of non-monetary assets.
Government subsidies regulated by government subsidy standards mainly have the following characteristics:
1. Free.
Economic resources from the government.
One is free. Free is the basic feature of government subsidies. The government does not enjoy the ownership of enterprises, and enterprises do not need to repay in the future. This feature distinguishes government subsidies from mutually beneficial economic activities between the government and enterprises, such as capital invested by the government as the owner of the enterprise and government procurement. Government subsidies usually attach certain conditions, which is not contradictory to the free nature of government subsidies. It doesn't mean that subsidies are issued, but that enterprises should use subsidies according to the purposes stipulated by the government after applying for government subsidies through legal procedures.
The second is to obtain assets directly. Government subsidies are assets that enterprises directly obtain from the government, including monetary assets and non-monetary assets, which form the income of enterprises. For example, enterprises receive subsidies allocated by the government, taxes refunded in the form of tax refund (refund), land use rights allocated by the administration, natural forests from natural sources, and so on. Economic support that does not involve the direct transfer of assets does not belong to the government subsidies stipulated by the government subsidy standards, such as debt forgiveness between the government and enterprises, and tax incentives other than tax rebates, such as direct reduction or exemption, increase of tax deduction, and partial tax credit.
It should also be noted that the VAT export tax rebate is not a government subsidy. According to the relevant tax laws and regulations, the export goods with value-added tax are subject to zero tax rate, that is, the value-added part of the export link is exempted from value-added tax, and the input tax collected in the previous link of the export goods is returned. As the value-added tax is extra-price tax, the input tax included in the previous link of export goods is a deduction item, which is reflected in the nature of the enterprise's advance payment. In essence, the export tax rebate of value-added tax is the funds returned by the government to enterprises in advance, and it does not belong to government subsidies.
In practical work, the forms of government subsidies mainly include financial allocation, financial discount, tax rebate and free allocation of non-monetary assets. No matter what form of government subsidy an enterprise receives, the government subsidy standard stipulates that accounting treatment should be divided into asset-related government subsidies and income-related government subsidies. In general, government subsidies are revenue-related government subsidies, because according to the principles and concepts of government subsidies under market economy conditions, government subsidies are mainly a kind of compensation for the price of specific products of enterprises that are lower than the cost due to non-market factors. Government subsidies related to assets are ultimately related to income, but they are temporarily treated as deferred revenue. When the related assets are formed and put into use, depreciated or amortized, they are transferred from deferred revenue to current profits and losses.
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