Morgan McKinley “Replacing Business Tax with Value Added Tax” Integrated Solution Sharing Meeting
From May 1, the range of the “replacing the business tax with value added tax” pilot initiative will be expanded to the building industry, real estate industry, financial industry and life service industry. It was learnt that the number of taxpayers involved in the four industries exceeded 10 million households. The detailed rules for the tax reform of “replacing business tax with value added tax” were published in a report that exceeded 90 pages. Added with the relatively complex business models of the four industries and more variables, financial and tax managers have practice handling a number of operational and technical problems.
On April 14, there were about two weeks remaining until the deadline for the implementation of the “replacing business tax with value added tax” pilot initiative, and Morgan McKinley joined with Ernst & Young to hold a small sharing meeting. About 15 accountants or tax directors from the retail consumer goods industry participated in the meeting and conducted an in-depth discussion with the partners of Ernst & Young Tax.
The sharing meeting was very relaxed and cheerful and reserved sufficient time for financial and tax managers to discuss the problems in a practical manner. The questions raised in the meeting included: How to deduct the interest generated by bank loans? Can the activity expenditure for customer entertainment be deducted? Whether the computers bought by the company and sent to employees at a cheap price need to be taxed? How to respond to the increased price of landlord and warehouse leasing brought by the tax system reform? How to deal with tax problems faced when providing architectural decoration services between counties (cities)? After the meeting, everyone hoped to have more of such opportunities to discuss new financial and tax problems met in practice in the future. As a professional recruitment company, Morgan McKinley also hoped to provide more knowledge-sharing platforms for customers by virtue of the resources that we have, and help solve business problems.