In the initial stage, enterprises often encounter "zero tax declaration" situation! In the daily processing of accounting, the accountants are also a little vague about zero declaration! Today I will bring you a correct understanding of the zero declaration!

01 How to judge whether your company can declare zero?

Judgment criteria on whether companies can do zero tax declaration processing in 2020 or not is based on the stipulates from the tax bureau as follows:

1. Zero-value-added tax declaration: The taxable income of small-scale taxpayers is 0, and general taxpayers have no output tax and no input tax in the current period.

2. Zero declaration of corporate income tax: the taxpayer is not operating in the current period, and the income/cost is basically zero.

3. Zero declaration of other tax types: when the tax calculation basis is 0.

To put it simply: during the tax reporting period, the income, cost and expenses are all 0, so that the enterprise can declare zero tax filing. 

02 The consequences on long-term "zero tax declaration" 

1. What are the consequences if there are zero tax declarations of violations?

Answer: Tax exemption, no tax payable and zero tax declaration, although the final result is zero tax payable, but the difference in practice is still very big. Taxpayers must correctly make zero declarations. Non-compliance with zero declarations will not only cause loss of corporate profits, but also affect corporate credit and increase tax risks. If it is a false zero declaration, the tax will be levied in accordance with the relevant regulations of the Tax Administration Law, and tax administrative penalties will be imposed, which will affect your company’s credit rating. The enterprise must operate in good faith and report to the tax authority in accordance with the regulations.

2. The tax authority will include taxpayers in the scope of key monitoring and conduct tax assessment in accordance with relevant regulations.

During the evaluation process, if it was found that it had concealed income, false invoices and other actions, then the tax bureau will require it to make up for the current taxes and pay the late fees, and could be fined according to the regulations, and the circumstances were severely transferred for inspection;

3. If the taxpayer is a fugitive, he shall be included in the list of major dishonesty and publicly announced.

At the same time, use the system to check the "ticketee", check whether there is a situation in good faith to obtain false value-added tax invoices, malicious collusion, etc., and investigate and punish in accordance with the regulations, and at the same time, the taxpayer who fled the household is directly assessed as the D taxpayer and bears D tax Human consequences

4. For taxpayers with long-term zero declarations and holding invoices, the invoices will be reduced in version and volume.

At the same time, taxpayers can be required to go to the taxation authority regularly to verify the use of invoices.

5. The tax authority can verify the taxpayer’s income by using the cost formula in accordance with relevant regulations through verification.

Enterprise zero declaration is only a temporary solution, but not a long-term solution. If the company does not have taxable income, it is recommended to carefully consider whether to continue the operation, and the company that does not want to operate must be written off in time to avoid tax risks and credit downgrade risks.

If you want a zero return, you must also keep your accounts on time and fill out the tax return on time. If you often forget to declare, beware of being classified as "abnormal household”.