In daily life, in addition to providing insight into tax dynamics through the release of tax related documents, the release of hot news and typical cases also reveals tax related information. "Tax Eye News" aims to extract and interpret tax related information from news, tax related legal documents, or major tax cases, and share it with readers.

1、 Tax authorities will deepen tax management for high income and high net worth individuals

On November 7th, the Shenzhen Municipal Taxation Bureau issued the "Public Bidding Announcement for the Phase IV Construction Project of the Natural Person Tax Application Platform". In the technical requirements of this announcement, it is clear that the purpose of this project is to "improve the natural person tax management system with a focus on high income and high net worth." The functions of this project are: (1) to achieve business income declaration management, comprehensively identify the need to handle business income settlement and clear the tax payer's bottom account, and track the remittance declaration of remitting people throughout the process; (2) Realize personal income tax data quality monitoring and services, identify quality issues related to personal income tax information submission and withholding declaration, and timely carry out data governance; (3) Realize the monitoring and management of major personal income tax issues, establish risk indicators and classification and grading early warning indicators for personal equity transfer, non monetary asset investment, equity incentive tax payment by stages, conversion to equity tax payment by stages, and other matters; (4) Realize single sign on integration and menu integration with the natural person electronic tax bureau.

Legal analysis: From the perspective of project functions, it is not difficult to see that the system will focus on whether the declaration of operating income of natural persons is compliant, whether there is a timely and full declaration, whether there is a conversion income declaration, and whether there is a legal withholding and prepayment of comprehensive income of natural persons. It will also focus on common risk points such as individual equity transfer, non monetary asset investment, equity incentive installment tax, and conversion to equity installment tax. From the bidding project conducted by the tax authorities in Shenzhen, it can be inferred that tax authorities across the country will also have this trend. The income of high-income and high-net worth individuals has been included in the key tax management scope in various regions.

2、 The state grants preferential policies for deferred tax payment of individual pensions

The "Announcement of the Ministry of Finance and the State Administration of Taxation on Individual Income Tax Policies Related to Individual Pensions" (Announcement No. 34 of the Ministry of Finance and the State Administration of Taxation in 2022) issued on November 3 stipulates that as of January 1, 2022, deferred tax preferential policies will be implemented for individual pensions. In the payment process, the contributions made by individuals to their individual pension fund accounts are deducted from comprehensive income or operating income based on the actual amount according to the limit standard of 12000 yuan per year; In the investment phase, the investment income included in the individual pension fund account will not be subject to individual income tax temporarily; In the receiving phase, the individual pension received by individuals is not included in comprehensive income, but is calculated and paid individual income tax at a separate tax rate of 3%. The tax paid is included in the "wage and salary income" item.

Legal analysis: This preferential policy is issued in accordance with the "Opinions of the General Office of the State Council on Promoting the Development of Individual Pensions" (GBF [2022] No. 7). According to the provisions of Guo Ban Fa [2022] No. 7, "Individual pensions are subject to a personal account system, with contributions fully borne by participants. Participants establish individual pension accounts through the individual pension information management service platform." Therefore, readers should note that the prerequisite for enjoying this preferential policy is that "individuals open accounts on the individual pension information management service platform, and their contributions are fully paid by individuals."

3、 "Double 11" discount promotion, e-commerce enterprises need to issue invoices in compliance

In the "Double 11" promotion, these discounts, point credits, and full credit coupons directly granted by businesses to consumers are all price discounts for enterprises to sell goods or provide services. Invoices issued by businesses must comply with regulations.

Legal analysis: According to Article 2 of the Notice of the State Administration of Taxation on Printing and Distributing the "Provisions on Certain Specific Issues of Value-added Tax" (Guo Shui Fa [1993] No. 154) and the Notice of the State Administration of Taxation on Deducting the Taxable Sales Amount of Value-added Tax by Discount Amount (Guo Shui Han [2010] No. 56), if e-commerce adopts the discount method to sell goods, the sales amount and the discount amount should be separately indicated on the same invoice, Otherwise, the discount amount shall not be deducted from the sales amount. Therefore, e-commerce enterprises should pay attention to the correct invoicing method when issuing invoices for the "Double 11" promotion to prevent losses.

4、 Release of the seventh batch of non transport special operating vehicles with fixed devices exempted from vehicle purchase tax

On November 1, the Ministry of Industry and Information Technology of the State Administration of Taxation issued a notice on the "Catalogue of Non Transport Special Operating Vehicles with Fixed Devices Exempted from Vehicle Purchase Tax" (the seventh batch) (Announcement No. 23, 2022, of the Ministry of Industry and Information Technology of the State Administration of Taxation). Vehicles in the catalogue will be exempt from vehicle purchase tax.

Legal analysis: In combination with other relevant laws and regulations, if relevant vehicles want to enjoy the preferential treatment of exemption from vehicle purchase tax, they should do the following: 1. Vehicle manufacturers, imported vehicle dealers, or individuals (hereinafter referred to as the applicant) submit application materials through the "Management System for Non Transport Special Working Vehicles with Fixed Devices Exempted from Vehicle Purchase Tax" of the Ministry of Industry and Information Technology as required, 2. The State Administration of Taxation The Ministry of Industry and Information Technology entrusts the Equipment Industry Development Center of the Ministry of Industry and Information Technology (hereinafter referred to as the Equipment Center) to conduct a technical review of the application materials submitted by the applicant. 3. The Equipment Center conducts a technical review in accordance with the Technical Requirements for Non Transport Special Operating Vehicles Equipped with Fixed Devices (hereinafter referred to as the Technical Requirements). 4. After the Equipment Center submits the approved vehicle models, the State Administration of Taxation The Ministry of Industry and Information Technology jointly issued the Catalogue.

5、 Multiple provinces have issued documents to further carry out the pilot work of fully digitized electronic invoice receipt

After Sichuan Province issued a document on October 28, 2022 to pilot the use of full electronic invoices among some taxpayers, from November 6, Shanghai, Tianjin, Inner Mongolia Autonomous Region, Shandong Province, Guangdong Province, Heilongjiang Province, Liaoning Province, Shaanxi Province, Shanxi Province, Guizhou Province, Hainan Province, and other provinces issued a document on "Further Developing the Pilot Work of Fully Digitized Electronic Invoice Receipt" and stipulated that:, "Provincial taxpayers can receive invoices issued by pilot taxpayers in Sichuan Province through the electronic invoice service platform, including full electronic invoices with the words" VAT special invoices ", full electronic invoices with the words" ordinary invoices ", value-added tax paper special invoices, and value-added tax paper ordinary invoices (folding invoices)."

Law analysis method: With the deepening and expansion of the pilot work, China's value-added tax invoices are bound to usher in the "all electricity era". Compared to traditional invoices, fully digitized electronic invoices have features such as complete traceability of the entire process, non tampering of information, simplified invoicing process, and convenient invoicing. They can effectively manage the entire process of invoice application, issuance, delivery, confirmation, inspection, and deduction, and effectively control tax violations such as fraudulent invoicing.