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、 Director of the Inspection Bureau of the State Administration: Further focus on high-risk industries and fields in 2023

On January 31, 2023, the State Administration of Taxation held the "2022 Annual Press Conference". At the press conference, the Director of the Inspection Bureau of the State Administration of Taxation stated in response to a reporter's question, "Combating tax related illegal and criminal acts is a long-term and arduous task. In 2023, the tax authorities will resolutely implement the decisions and arrangements of the Party Central Committee and the State Council, further focus on key areas of high-risk industries to crack down on various types of tax evasion and fraud in accordance with the law, and continuously deepen the use of cases to promote management and treatment; further give play to the role of the six departments' normalized work mechanism to combat fraudulent tax evasion and improve the overall efficiency of investigating and handling tax related cases ； "We will further improve our ability to detect and accurately crack down on risks, give greater play to the role of tax inspections in cracking down on tax related violations, maintaining tax safety, and promoting tax governance, and strive to create a standardized, orderly, and fair competition tax legal environment."

Legal analysis: Judging from the speech of the Director of Audit of the State Administration of Taxation, tax audit in 2023 will "further focus on key high-risk industries and key areas.". Based on the key industries and fields of tax inspection conducted by the tax department in 2022, it can be determined that in 2023, the tax inspection work will focus on combating various illegal activities such as tax evasion, tax evasion, tax fraud, and fraud. Specific manifestations include: fraudulent or illegal obtaining of tax rebates, fraudulent invoicing and fraudulent obtaining of export tax rebates, tax evasion by practitioners in key industries, illegal and illegal cases involving tax intermediaries and their employees, fraudulent invoicing of agricultural product purchases, fraudulent electronic ordinary invoices for value-added tax, fraudulent invoicing of value-added tax, as well as the entertainment industry, petrochemical industry, pharmaceutical industry, coal industry, flexible labor industry Foreign trade export industry, etc.

2、 The Ministry of Finance and the State Administration of Taxation continue the separate tax preferential policies for equity incentives of listed companies

On January 16, 2023, the Announcement of the Ministry of Finance and the State Administration of Taxation on the Continued Implementation of Individual Income Tax Preferential Policies (Announcement No. 2 of the Ministry of Finance and the State Administration of Taxation in 2023) issued a document that sets out the separate tax preferential policies for equity incentives of listed companies as stipulated in the Announcement of the Ministry of Finance and the State Administration of Taxation on the Continued Implementation of Individual Income Tax Preferential Policies such as Annual Lump Sum Bonuses (Announcement No. 42 of the Ministry of Finance and the State Administration of Taxation in 2021), The preferential policies for individual income tax stipulated in the Announcement of the Ministry of Finance, the State Administration of Taxation, and the Securities Regulatory Commission on Continuing to Implement the Interconnection Mechanism for Trading in the Stock Markets of Shanghai, Hong Kong, Shenzhen, and Hong Kong and the Individual Income Tax Policies for Mutual Recognition of Funds between the Mainland and Hong Kong (Announcement No. 93 of the Ministry of Finance, the State Administration of Taxation, and the Securities Regulatory Commission in 2019) will continue to be implemented until December 31, 2023.

Legal analysis: The separate tax preferential policy for equity incentives in listed companies is: "Individual residents who obtain equity incentives such as stock options, stock appreciation rights, restricted stocks, and equity awards are not included in the comprehensive income of the current year, and the full amount is separately applied to the comprehensive income tax rate table for tax calculation. The calculation formula is: tax payable=equity incentive income." × "Applicable tax rate - quick calculation of deductions."
The preferential policies for individual income tax covered by Announcement No. 93 of the Ministry of Finance, the State Administration of Taxation, and the Securities Regulatory Commission in 2019 are: "Individual income tax is temporarily exempted from the transfer difference income obtained by mainland individual investors from investing in stocks listed on the Hong Kong Stock Exchange through the Shanghai Hong Kong Stock Connect and the Shenzhen Hong Kong Stock Connect, and from the transfer difference income obtained from trading Hong Kong fund units through mutual fund subscription."

3、 According to VAT invoice data, sales revenue of consumer related industries nationwide during the Spring Festival holiday increased by 12.2% year-on-year

According to the latest value-added tax invoice data from the State Administration of Taxation, sales revenue of consumer related industries nationwide increased by 12.2% compared to the previous Spring Festival holiday. The consumption of goods and services increased by 10% and 13.5% respectively year-on-year. Consumption of daily necessities, household upgrading goods, and tourism services grew rapidly. During the Spring Festival holiday, some migrant workers returned to their hometown for the holiday. Driven by this, sales revenue in Anhui, Jiangxi, Henan, and Guangxi, which are major labor exporting provinces, increased by 10.3%, 22.3%, 16.1%, and 23.9% year-on-year, respectively. The sales revenue of basic daily necessities such as grain, oil, and food during the Spring Festival holiday increased by 31.5% year-on-year, with fruit and vegetables, meat, poultry, eggs, and milk increasing by 39% and 28.6% respectively. There is strong demand for commodities such as alcoholic beverages, and the sales revenue of alcohol, beverages, and tea increased by 18.7% year-on-year. During the Spring Festival holiday, the sales revenue of travel agencies and related service industries increased by 1.3 times year-on-year, while the sales revenue of tourist hotels and economic chain hotels increased by 16.4% and 30.6% respectively year-on-year. The personalized services provided by home stay services were welcomed by tourists, with sales revenue increasing by 74.2% year-on-year.

Legal analysis: After the end of the epidemic, the national economy began to recover and recover, and it is believed that the tax data for the first quarter will significantly increase year-on-year.

4、 The National Tax Work Conference was held in Beijing, and the State Administration made arrangements for key tasks in 2023

On January 17th, the National Tax Work Conference was held in Beijing to make arrangements for the work of the tax system in 2023. The meeting emphasized that it is necessary to actively promote the rational determination of budget revenue targets, continue to strengthen normalized revenue monitoring and analysis, and strictly investigate those who violate organizational revenue discipline and impose "excessive taxes". We need to study, improve, and implement detailed tax and fee support policies to create a favorable tax and fee policy environment for stable growth, employment, and prices, as well as stable and healthy economic development. We should steadily improve the level of social security fees and non-tax income collection and management services, actively cooperate with relevant departments to do a good job in the national planning of old-age insurance, and pilot work on occupational injury protection for new forms of employment. We need to further deepen the reform of tax collection and management and strengthen tax supervision, further promote the implementation of the "Opinions on Further Deepening the Reform of Tax Collection and Management", achieve significant breakthroughs, steadily promote the construction of the tax big data system, gradually promote the nationwide unified and standardized electronic tax bureau, provide better services to taxpayers, improve the new regulatory mechanism of "credit+risk", and promote the realization of minimizing interference with market entities Maximize regulatory effectiveness. We should further deepen the "the Belt and Road" tax collection and management cooperation mechanism, deeply participate in the formulation of international tax rules, and better serve the high-level opening up. We need to strengthen the construction of a contingent of tax officials and persevere in promoting the spirit and spirit of officials and entrepreneurs.

Legal analysis: As can be seen from the deployment of key tasks for 2023 at the National Tax Work Conference, in 2023, the tax system will strictly investigate and collect "excessive taxes", optimize tax preferential policies, strengthen tax supervision, promote the construction of a tax big data system, facilitate taxpayers' tax handling, and deeply participate in the formulation of international tax rules.

5、 The Shanghai Municipal Bureau of Finance and Taxation issued a document extending the preferential tax policy for disabled, elderly and martyrs' families to obtain labor income, raising the annual reduction in personal income tax to 9600 yuan within a tax year

On January 9, 2023, the Shanghai Municipal Bureau of Finance and the State Administration of Taxation, the Shanghai Municipal Bureau of Taxation, issued the "Notice on the Implementation of the Individual Income Tax Reduction Policy on Labor Income for Persons with Disabilities, Orphans and Martyrs' Families in Shanghai" (HCF [2023] No. 1), stipulating that during the period from January 1, 2023 to December 31, 2025, the comprehensive income or business income obtained by the disabled, Orphans and Martyrs' Families in Shanghai shall be included in a tax year, The annual reduction of individual income tax is limited to 9600 yuan; If it is less than 9600 yuan, the tax shall be reduced according to the actual situation.

Legal analysis: Only disabled, elderly, or martyrs' families who have obtained valid certificates or certificates issued by relevant functional departments can enjoy the above preferential policies. Therefore, if you comply with the above preferential policies, you need to obtain valid documents or certificates first.

6、 The State Administration of Taxation has made adjustments to the preferential tax policies for small-scale value-added tax payers

At the beginning of the 2023 New Year, the Ministry of Finance and the State Administration of Taxation issued Announcement No. 1 of 2023 to clarify the policy on value-added tax reduction and exemption for small-scale taxpayers of value-added tax this year. The policy generally continues the previous provisions on value-added tax reduction and exemption for small-scale taxpayers, but the specific scope has been tightened. For small-scale taxpayers exempt from value-added tax, the sales standard is adjusted to a monthly sales amount of less than 100000 yuan or a quarterly sales amount of 300000 yuan; The second is that small-scale taxpayers applying a 3% tax rate will enjoy the tax exemption policy from April 2022, and will now be taxed at a reduced rate of 1%; The third is to adjust the tax deduction policy. The tax deduction for taxpayers in the production service industry was changed from 10% to 5%, and the tax deduction for taxpayers in the living service industry was changed from 15% to 10%. Overall, the value-added tax policies of small-scale taxpayers in 2023 have undergone significant adjustments, and taxpayers should pay attention to them.

Legal analysis: Because the document was published on January 9, 2023, it is stipulated that it will be implemented as of January 1, 2023. Therefore, the tax exempt invoices issued before the issuance of the above policy documents do not need to be recovered, and VAT can be calculated and paid at a reduced rate of 1% when filing tax returns.

7、 "Four+Seven" Tax Related Illegal Cases Reported by the State Administration of Taxation

On January 10, 2023, the official website of the State Administration of Taxation reported four cases of tax related violations, including: a case of falsely issuing a unified invoice for motor vehicle sales by the Anhui Provincial Police and Tax Union, a case of falsely issuing an invoice by the Jilin Provincial Police and Tax Union, a case of falsely issuing an invoice by the Qinzhou Municipal Taxation Bureau of the Guangxi Zhuang Autonomous Region Several departments in Guangdong Province jointly investigated and dealt with a gang case of obtaining export tax rebates in accordance with the law.

On January 31, 2023, the official website of the State Administration of Taxation announced seven cases of tax related violations, including: a case of fraudulent export tax refund gang investigated and dealt with by multiple departments such as Beijing Municipal Taxation Bureau in accordance with the law, a case of fraudulent withholding tax refund investigated and dealt with by the Second Inspection Bureau of Qingdao Municipal Taxation Bureau in accordance with the law, a case of fraudulent issuance of VAT special invoices involving tax intermediaries jointly investigated and dealt with by Anqing City Police and Tax Bureau in Anhui Province in accordance with the law The Second Inspection Bureau of Yiyang City Taxation Bureau of Hunan Province investigated and dealt with a case of tax evasion at a gas station, the First Inspection Bureau of Greater Xing'anling District Taxation Bureau of Heilongjiang Province investigated and dealt with a case of falsely issuing agricultural product purchase invoices, the Inner Mongolia Autonomous Region Police and Tax Union investigated and dealt with a case of falsely issuing electronic ordinary VAT invoices, and the Xiamen City Police and Tax Union investigated and dealt with a case of falsely issuing VAT invoices.

Legal analysis: The above cases collectively reflect that local public security and tax departments are implementing the work requirements of the State Administration of Taxation, the Ministry of Public Security, the Supreme People's Procuratorate, the General Administration of Customs, the People's Bank of China, and the State Administration of Foreign Exchange to regularly crack down on fraudulent tax practices. Therefore, in 2023, it will be a key inspection target for gang style, cross regional, illegal and criminal acts of falsely issuing invoices, as well as various types of tax evasion and fraud.

8、 The State Administration of Taxation issued a document to optimize certain tax collection and management services

On December 29, 2022, the State Administration of Taxation issued the "Notice of the State Administration of Taxation on Optimizing Several Tax Collection and Management Services" (SZZKF [2022] No. 87), simplifying the operational process for taxpayers to change registration matters, optimizing the tax service process for cross provincial migration, optimizing tax source management responsibilities, and strengthening registration business collaboration with market regulatory authorities.

Legal analysis: SZSKF [2022] No. 87 document will be implemented on January 4, 2023. After the implementation of this document, it will be more convenient for taxpayers to handle tax related matters.