Taxes Payable
Taxes payable are the taxes that a company should pay in its business operations. They mainly include value-added tax, corporate income tax, personal income tax, consumption tax, urban maintenance and construction tax, resource tax, and land value-added tax, etc.
Taxes Payable
Definition
Taxes payable refer to the various taxes that a business must pay during its operations. These taxes include, but are not limited to, value-added tax (VAT), corporate income tax, personal income tax, consumption tax, urban maintenance and construction tax, resource tax, and land value-added tax.
Origin
The concept of taxes payable has gradually formed with the establishment of modern tax systems. Taxes have existed since ancient times as a primary source of national revenue, but the modern concept of corporate taxes payable developed after the Industrial Revolution as business scales and economic activities became more complex.
Categories and Characteristics
Taxes payable can be divided into various types, each with its specific characteristics and application scenarios:
- Value-Added Tax (VAT): A tax levied on the added value of goods and services during production and circulation. The tax burden is ultimately borne by consumers.
- Corporate Income Tax: A tax levied on the taxable income of businesses. It is a direct tax, self-reported and paid by businesses.
- Personal Income Tax: A tax levied on the taxable income of individuals. It features a progressive tax rate, with higher incomes subject to higher rates.
- Consumption Tax: A tax levied on specific consumer goods, such as tobacco, alcohol, and luxury items. It aims to regulate consumption behavior.
- Urban Maintenance and Construction Tax: A tax levied as an additional charge on VAT and consumption tax amounts, used for urban infrastructure construction.
- Resource Tax: A tax levied on the extraction and utilization of natural resources, paid by resource users.
- Land Value-Added Tax: A tax levied on the value-added portion of land use rights transfers, aimed at regulating the land market.
Specific Cases
Case 1: A manufacturing company has a total sales revenue of 10 million yuan in a tax year, with a taxable income of 2 million yuan after deducting costs and expenses. The corporate income tax payable is 2 million yuan × 25% = 500,000 yuan.
Case 2: An individual has a salary income of 500,000 yuan in a tax year, with a taxable income of 400,000 yuan after deducting various exemptions and expenses. According to the progressive tax rate, the personal income tax payable is 400,000 yuan × 20% = 80,000 yuan.
Common Questions
Question 1: How can a business determine the specific amount of taxes payable?
Answer: A business needs to calculate the specific amount of each tax payable according to national tax laws and its own operating conditions, and report and pay them on time.
Question 2: Can taxes payable be deferred?
Answer: In specific circumstances, such as temporary financial difficulties, a business can apply to the tax authorities for a deferral, but must provide relevant supporting documents.
