Analysis On Tax Policy Of Auction Revenue

The State Administration of Taxation issued the notice on strengthening and standardizing individual income tax collection for individual auction revenue ([2007]38, hereinafter referred to as "No. 38"), and refined the relevant policies and regulations on personal income tax collected by individuals through auction market auction of paintings, porcelain, jade, jewelry and other properties.

As a matter of fact, the relevant regulations on personal income tax on works of art, such as personal auctions, porcelain, jade articles and so on, were introduced as early as 1997.

This article 38 is to regulate the personal income tax collected by individual auctions of various properties, including paintings and calligraphy, porcelain, jade, jewelry, postal products, coins, ancient books, antiques, etc., so as to make the collection and management more operable.

In this paper, individual auction revenue is obtained.

The specific issue is analyzed as follows:

Individual income tax is collected in two cases.

In Article 38, the personal income tax applicable to individual auction income is divided into two categories:

(1) according to the provisions of the circular issued by the State Administration of Taxation ([1994]89), the auctions obtained from the original or copy of the manuscripts of the manuscripts should be deducted from the amount of 800 yuan (the amount of pfer income is less than 4000 yuan) or 20% (the amount of income pferred to 4000 yuan or more) shall be the taxable income, and the personal income tax shall be paid at 20% tax rate according to the item "royalties".

(2) except for the original manuscripts and photocopies of the original works, the amount of the taxable income after the deduction of the original value of the pfer proceeds and the reasonable expenses shall be the amount of taxable income, and the personal income tax shall be paid according to the 20% tax rate of the item "pfer of property".

It can be seen that the scope of auctions applicable to items of pfer of property is very extensive.

Article 38 provides that individual income tax shall be levied on the proceeds of other property auction except for the personal income tax collected from the original or copy of the original manuscript of the auction works.

Here we should pay attention to how to define the original manuscript or copy of the manuscript manuscript and why the individual income tax should be levied separately on the item under the royalties.

According to the fourth regulation of the copyright law of the People's Republic of China, the written works clearly refer to works written in words, such as novels, poems, essays, essays, etc.

The law of the People's Republic of China on personal income tax stipulates that royalties are income derived from the right to use patents, trademarks, copyrights, non patented technologies and other franchises, and the proceeds from the use of copyrights shall not be included in the remuneration.

It can be seen that the auction of original manuscripts or copies of manuscript manuscripts will involve property rights other than personal rights, such as reproduction rights, distribution rights, rental rights and other copyright rights, which belong to a kind of income related to copyright.

Therefore, unlike the auction of other properties, the original or copy of a manuscript manuscript is subject to personal income tax in accordance with the item "Royalty".

Auction property is calculated at the final auction price.

No. 38 provides for the collection of personal property auction proceeds.

When the property is finally auctioned, the paction price is the amount of the pfer proceeds.

And how to determine the "final auction price"? According to the fifty-first provision of the auction law of the People's Republic of China, the highest bidder's price should be confirmed by auctioneer's hammer or by other publicly stated purchase.

According to this provision, the highest price for auctioneers to drop a hammer is the final auction price.

But there is another special case.

According to the thirty-ninth provision of the auction law of the People's Republic of China, if the buyer fails to pay the price according to the agreement, the auctioneer shall be authorized by the trustee to auction the auction target again.

If the price of a re auction is lower than that of the original auction price, the original buyer should make up the difference.

That is to say, the income from the auction of personal property under special circumstances is the total sum of the auction price and the original buyer's difference.

Auction property can be deducted by legal effective documents before tax.

Article 38 stipulates that when the auction proceeds of personal property are applicable to the item of taxable income calculated from the item of pfer of property, the taxpayer shall rely on lawful and valid credentials (made by the tax authority).

The relevant foreign paction documents, customs declaration documents, tax payment certificates, etc., shall be deducted from the original amount of the original property, the tax paid during the auction of the property and the relevant reasonable expenses from the amount of the pfer proceeds.

It is worth noting that the No. 38 civilization stipulates that taxpayers must rely on valid and valid certificates, including official invoices issued by tax authorities, relevant overseas trading documents, customs declaration documents, tax payment certificates and other valid valid vouchers, otherwise they can not be deducted.

First, the original value of the property is deducted.

To put it simply, it is the seller who gets the price of the auction.

The determination of the original value of property is divided into five cases:

(1) the purchase price of the auctioned goods through shops, galleries and other channels;

(2) the auction price is paid for the auction product and the related taxes and fees paid.

(3) the expenses incurred in collecting the auction item through the ancestral collection.

(4) the relevant taxes and fees arising from the sale of the auction item.

(5) in other forms, the original value of property shall be determined according to the above principles.

Secondly, it is the tax paid in the process of deducting the auction property.

Specifically refers to the actual tax paid and additional in the auction of property.

Thirdly, it is necessary to reduce the reasonable expenses.

Reasonable expenses include auction fees (Yong Jin), appraisal fees, assessment fees, catalogue fees, certificate fees and other fees paid by taxpayers in accordance with the regulations.

In accordance with the provisions of the fifty-sixth law of the People's Republic of China auction law, that is, the proportion of Yong Jin between the client and the buyer can be agreed with the auctioneer, the auction cost of the seller and the buyer (Yong Jin) is generally less than 10% of the auction price, and the specific standard for the auction house to collect the Yong Jin from the seller and the buyer is determined according to international practice and market conditions.

Other expenses, such as graphic fee, are usually between 200~300 yuan and 1000~2000 yuan per piece. Such expenses should be deducted according to the actual amount incurred.

There are limited conditions for the auction proceeds from the approved collection.

For those long lost or lost causes, the taxpayer can not provide the original value certificate of the property; and even if the original value of the property is provided, but the original value of the certificate is the sum of the original value of several auction products, and the specific original value of each auction product can not be determined. How should we collect the personal income tax?

Article 38 stipulates that if a taxpayer fails to provide a legal, complete and accurate certificate of property value, and fails to correctly calculate the original value of the property, the individual income tax shall be calculated according to the 3% levy rate of the pferred income. If the auction product is determined by the cultural relics department to be returned overseas, the individual income tax shall be calculated according to the 2% rate of the pferred income.

That is to say, the collection of personal income tax by the method of approved collection is divided into two specific situations.

(1) to calculate the payment of personal income tax according to 2% of the amount of pfer income recognized by the cultural relics department as overseas reflow of cultural relics.

(2) for other auctions, the individual income tax shall be calculated on the basis of 3% of the auction revenue.

Here, we should focus on the identification of "returning overseas cultural relics".

The overseas returned cultural relics are mainly determined by the Provincial Cultural Relics Management Committee (hereinafter referred to as the "Wen Hui Hui") according to the customs entry records to determine whether the auctioned cultural relics are "returned overseas cultural relics". The auctioneer will deduct the tax payable according to the 2% collection rate according to the identification materials issued by the Council.

Compared with the 3% levy rate, the rate of 2% reflects the state's encouragement and support for auctioning overseas cultural relics in China.

At the same time, it also provides policy convenience for people to make corresponding tax planning.

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