Study On Book-tax Difference Of Special Sales Business Of Productive Enterprises

In 2006,the Ministry of Finance issued accounting standards for enterprises including 1 basic principles and 38 specific guidelines.In 2014,5 specific guidelines were revised and 3 specific guidelines were added,and international convergence was gradually realized.In recent years,the substantive tax law has been constantly changing.The value-added tax has undergone major changes,such as the transformation reform and the policy of "replacing the business tax with a value-added tax",the latter of which has been carried out in an all-round way since 1 May,2016 with its contents added to the tax returns of general taxpayer and small-scale tax payers.In 2008,the unified income tax began to be implemented in China and after ten years of continuous improvement,the total number of annual tax returns forms has increased to 41,covering various tax adjustment matters.With the continuous reform and improvement of China's accounting and tax laws,huge book-tax difference arose and the sales business of productive enterprises will enter the stage of book-tax separation.The difference between accounting and tax purposes is the fundamental reason for book-tax differences with other complicated factors such as economy,law,politics,culture and education exerting effect in different fields and in different ways.Based on the current situation of our country,book-tax will be an inevitable trend,but we should control the separation to a certain extent,meaning adopting a moderate book-tax separate mode.The existence of book-tax differences can maintain the independence of accounting,so that accounting information can reflect economic business faithfully and provide decision basis for users of accounting information.At the same time,the increasing book-tax differences have brought many difficulties to the accounting and tax practice of productive enterprises.The existence of book-tax differences has increased the tax paying cost and tax risk of enterprises,while reducing the administrative efficiency in association with tax revenue.With the rapid development of the economy and the increasingly fierce market competition,the types of sales businesses of productive enterprises are becoming more and more complex.Taking the floor productive enterprise as an example,this paper makes an in-depth study on the special sales business of the productive enterprises,covering almost all special sales business,not only sales in terms of accounting,but also deemed sales in terms of tax law and sales closely related to sales.Every sales business is compared and analyzed from two angles of accounting standards and tax laws,and advices on how to deal with the book-tax differences through financial accounting and tax handling are given.In the analysis of the book-tax difference and treatment of the sales business,it is not limited to the enterprise income tax,the value-added tax,the consumption tax,the urban maintenance and construction tax and the additional education fee are also included.Comprehensive analysis about the book-tax difference of the circulation tax and the income tax of productive enterprises,as well as discussion about reasonable tax avoidance method of some businesses,is made in this paper.Based on the analysis of the book-tax differences of productive enterprises,countermeasures are put forward in this paper.First of all,cooperation and communication between the financial department and the tax department should be strengthened.China's accounting standards and tax laws are formulated and enforced by the government departments,which makes the coordination of book-tax differences possible.The Ministry of Finance and the State Administration of Taxation should take the initiative to communicate and cooperate so as to reduce book-tax differences at the level of policy formulation.Second,we should strengthen mutual coordination between accounting standards and tax laws.Third,the implementation of Accounting Standards for Small Businesses should be strengthened.When implementing this aforesaid regulation,financial accounting process for small enterprises in accordance with small and micro division standards can be simplified so as to reduce book-tax difference.Finally,tax accounting can be seen as a branch of financial accounting.Tax accounting can reduce the tax paying cost and tax risk of productive enterprises,while improving the efficiency of tax collection and management and promoting the implementation of tax policies.