"The Notice of the State Administration of Taxation on the issuance of the "Measures for the Administration of Pre-tax Deduction of Enterprise Income Taxes" (State Administration of Taxation Announcement No. 28 of 2018) stipulates that starting from July 1, 2018, invoices should be obtained as pre-tax deductions. Because the other party can not obtain the invoice due to special reasons such as the cancellation of the other party, revocation of the business license, cancellation of business license according to law, and identification by the taxation authority as an abnormal family account, the corresponding expenditure can be deducted before taxation upon verification of the authenticity of the expenditure with relevant information.

The "required materials" in the relevant materials include: payment vouchers that are paid in a non-cash way; That is to say, if payment is done by cash, The above-mentioned “Accounts shall be obtained as pre-tax deduction but the announcement requires that special reasons cannot be used to obtain the invoice”. No matter how “adequate” other information is, it cannot be deducted before tax.

Practical case:

[Examples] Enterprises purchase raw materials, payment is also paid, have not waited until the billing, the other party on the "loss of connection" was identified by the tax authorities as abnormal households, according to the relevant provisions "according to the relevant information to confirm the authenticity of expenditure, the corresponding expenditure Can be deducted before tax," specific information includes:

a) The seller is included in the certification information of abnormal business households;

b) Contracts or agreements related to business activities (including if no contract has been signed, information that can be confirmed by both parties can be used as an alternative);

c) Use non-cash payment vouchers;

d) Proof of goods transportation (or delivery list, etc.);

e) Cargo warehousing, delivery of internal documents;

f) Enterprise accounting records and other information.

Items 1 to 3 of the preceding paragraph are mandatory information.

Remind:

(1) If the cash payment used for the purchase of raw materials at that time is not enough, no matter how “adequate” other information is, it cannot be deducted before tax.

(2) WeChat and Alipay payment using the unit account are not regarded as cash payment; WeChat and Alipay payment by person will be regarded as cash payment.

(3) The unit shall revise the relevant internal management regulations concerning external payment as soon as possible. It is recommended that: procurement of raw materials, equipment, real estate, etc. should obtain invoices; failure to obtain on-site invoices for expenditures, or expenses exceeding a certain amount (based on The actual situation of the unit is determined), it must not be paid in cash!

(4) Although the policy will be implemented since July 1, 2018, it is proposed to revise the relevant internal management regulations for external payments from the unit.