1. Tax Law and Tax Accounting Economics and Management School Lanzhou University of Technology

2. Learning Objectives Master the basic principle and knowledge of the tax law Master the basic principle,contents and method of tax accounting Familiar with the turnover tax and income tax law, to correctly calculate the taxable amount; Familiar with all kinds of specific tax accounting treatment Understand the tax background knowledge

3. Part One Introduction to Tax Law

4. Tax Definition Tax can be defined as an amount of fund deducted from Individuals, Institutions and Like Corporations, which is transferred to Public Treasury to finance Public Expenditures and Public Projectors for Social and Economical Welfare

5. The Basic Contents of Tax Law The main concepts of Tax can be summarized as follows : (1)- Tax is a sacrifice paid to the Government without return or benefit. (2) – Tax is compulsory by the Law.

6. (3) – The main Base of Tax are Revenues, Incomes, Earnings, and Wealth of Individuals and Institutions

7. ( 4) – Tax is calculated according a set of principles (Rules) which govern Its determination, measurement and Disclose. (5) – The main objective of Tax is to share in Social and Economical welfare.

8. The feature of Taxation Mandatory Free fixed

9. Tax Objectives 1– Financing public expenditures and projects such as: Education health security and other Public services and benefits

10. 2 - Sharing in social welfare for people whom under the standard well-living 3 –Sharing in Economical Growth 4 -Fair distribution of income and wealth between peoples

11. 5-It is a tool to help government in designing some policies such as : -social well and benefits policies -Avoiding inflation policies – Investment policies – Deficit in public treasury policie

12. Taxes Classification. - Direct Taxes : which are imposed directly on individuals, Who bear its burden and cannot transfer it to others, such as : - Tax on income, -Tax on revenues, - Tax on wealth, - Tax on capital

13. 2- Indirect Taxes :which are imposed indirectly on Individuals such as : - Tax on production - Tax on sales

14. There are other classification of Taxes such as : - Tax on wealth - Tax on income - Tax on consumption And so on

15. The Basic Contents of Tax Law The function of tax law include four points: a) Tax law is the legal safeguard of national fiscal revenue ; b) Tax law is the legal means of national macroeconomic regulation and control c) Tax law to maintain the order of economy has important role d) Tax law can effectively safeguard the legitimate rights and interests of taxpayers

16. Current tax system in china Tax system is defined as a plan or a framework consists of a set of components operate together to calculate Due Tax on individuals and institutions according to Tax Laws and Rules.

17. Tax System Components The main Components of a Tax System are as follow : - Taxpayers, - Tax Laws and Tax Instructions - Tax Governmental Units, - Tax Justice Units, - International Tax Rules and Tariffs

18. Part Two Introduction to Tax Accounting

19. What is Tax Accounting? It is defined as a science and an art concerning with calculating Tax and generating Information to Taxpayers, to Tax Authorities Units and to whom it may concern for making decisions.

20. a)fulfill the obligation of tax payment b)Coordinate the relationship with financial accounting c)science plan, strive for the biggest economic benefits The goal of tax accounting

21. Tax Accounting Objectives The main objectives of Tax Accounting System is to generate Tax Information concerning with the following items : - Taxable Revenues, - Taxable Deductions and Allowances -Tax Base - Tax Rate, - Tax Statement and Annual Report, - Tax Adjustments to Annual Report.

22. Tax Accounting Principles Tax Accounting Principles are as follows : - Tax Period : it means that the Tax Statement is prepared about a certain period which is called : Tax Interval Period.

23. Objectivity : it means that Tax must be based on verifiable evidence as possible, judgmental measures and standards

24.  – Consistency between periods for the same entity : it means that, the enterprise must apply the same accounting principles, policies and methods for measuring Due Tax to make comparison meaningful

25. – Monetary Values : it refers to using money as a unit of measure of Due Tax ignoring Changes in its general purchasing power.

26. - Continuity or going Concern: it means that every enterprise should be viewed as remaining in operations for measuring Due Tax.

27. Disclosure : it means that Tax Statements should disclose which is necessary to make Due Tax clear and not misleading.

28. In addition to the previous principles,there are other Values such as : - Ethical Values, - Behavioral Values, - Religious Values Tax Accounting Values

29. Tax Accounting Procedures. 1-Collecting data about Individuals business Transactions. 2-Recording data in Books and Records 3-Classifying data. 4-Analyzing data according to Tax Laws..

30. 5- Preparing the Financial Statements according to Tax Laws. 6- Preparing the Annual Tax Statement according to Tax Laws and Instructions. 7- Preparing the Annual Tax Declaration ( Tax Report ).

31. Tax Accounting Information Users. They are as follow : - Taxpayers - Individuals - Institutions - Corporations - Establishments - C. Accountants and Others

32. Tax Authorities Users Tax Authorities Users are as follow : Tax Inspector, Tax Investigator, Tax Auditor, Tax Competent, Tax Interior Committee, Tax Appeal Committee, Tax Court Council, Governmental Units Other Taxation Establishments

33. Tax Calculating Elements Tax calculation Elements are: Taxable Revenues or Incomes, Taxable Deductions, Taxable Allowances, Tax Rate, Tax Due, Pre-paid Tax, Tax Due to be paid

34. Tax Calculation Equations Tax Calculation Equations are : 1 - Net Taxable Revenue = Tax Base = Total Taxable Revenues Less ( Taxable Deductions) ( Taxable Allowances ) 2-Tax Due= Net Taxable Revenue ( Tax Base) × Tax Rate 3- Tax Due to be Paid= Tax Due Less Pre-paid Tax.

35. Thanks for Your Attention