To start a company, you not only need to understand the market demand and business model, but also need to master some basic financial and tax knowledge. The following are eight financial and tax knowledge that must be known when starting a company:
1、 Business license application and tax registration
The newly established company must go to the tax bureau for tax registration within 30 days after obtaining the business license. Tax registration is an important procedure, which can ensure that the company can pay taxes legally and enjoy relevant preferential tax policies. For tax registration, it is necessary to submit the basic information of the company, the ID card of the person in charge and other materials, and handle the tax registration certificate in the tax bureau.
2、 Accounting and tax payment
The new company shall set up account books (bookkeeping) according to regulations to pay taxes on production and operation. An enterprise shall establish and improve its accounting system in accordance with the provisions of the Enterprise Accounting System, and maintain the integrity and accuracy of its accounting books. According to the regulations of the State Administration of Taxation, an enterprise shall make an annual report on the tax declaration and tax payment of the previous tax year after the end of each tax year, and pay enterprise income tax to the tax bureau within the specified time.
3、 Tax declaration
The new company must declare tax, and the enterprise needs to declare tax when it is established. Even if the enterprise has no actual operating income, it also needs to pay a certain amount of tax within the specified time. An enterprise shall, in accordance with the tax returns and submission requirements stipulated by the State Administration of Taxation, truthfully declare its tax payable and pay taxes in full and on time.
4、 Annual industrial and commercial inspection
The annual industrial and commercial inspection shall be submitted within the specified time, and the annual industrial and commercial inspection shall be submitted from January 1 to June 30 every year. The annual industrial and commercial inspection is a comprehensive review of the business status of enterprises, which aims to ensure that enterprises operate in accordance with the law, prevent business risks, and improve the market competitiveness of enterprises.
5、 Final settlement of enterprise income tax
To handle the final settlement of enterprise income tax within the specified time, the enterprise shall submit the annual income tax return to the tax authority and pay enterprise income tax within five months from the end of the tax year (January 1 to May 31 of the next year). Final settlement is a form of annual tax declaration and payment, which is used to calculate the income tax income and expenditure of enterprises in the past year, determine the amount of tax payable of enterprises, and make up and refund tax for enterprises that pay too much or too little tax.
6、 Declaration and payment of VAT
Value added tax is a kind of tax calculated according to the value-added of value-added goods and services. For operators, they should understand the declaration and payment of value-added tax. VAT taxpayers need to submit VAT returns according to the specified time, truthfully report their tax payable, and pay VAT within the specified time.
7、 Individual income tax
When settling employees' salaries, enterprises also need to know about personal income tax. According to the regulations of the State Administration of Taxation, enterprises shall withhold and remit taxable income in accordance with the provisions of the Individual Income Tax Law, and report and pay individual income tax to the tax authorities in a timely manner. The enterprise needs to calculate the amount of tax payable and pay the individual income tax within the specified time according to the actual salary of employees every month.
8、 Preventing tax violations
It is illegal to buy false business invoices. If you reach certain standards, you will be sent to prison. In addition, there are some other tax violations, such as tax evasion, tax evasion and tax fraud. Enterprises need to strengthen prevention, comply with tax laws and regulations, and maintain good tax compliance records.
To sum up, starting a company needs to master some basic financial and tax knowledge, including tax registration, accounting and tax payment, tax declaration, annual industrial and commercial inspection, final settlement of corporate income tax, declaration and payment of value-added tax, personal income tax, prevention of tax violations and other eight aspects. Understanding these knowledge can help enterprises operate legally and legally, effectively avoid risks and improve market competitiveness.
