Foreign-Funded Enterprise Income Tax And The Preferential Policies Of Deposit And Loan Pricing For Foreign-Funded Enterprises

In accordance with the provisions of the detailed rules for the implementation of the income tax law of foreign enterprises, the calculation method of the actual cost price of the occurrence and utilization of all inventories can be selected in the first in, first out, weighted average, moving average method and last in first out method.

Once the pricing method is selected, it is not allowed to change at will, and it is necessary to change the pricing method before reporting to the competent tax authorities prior to the start of the next tax year.

As a taxpayer, according to the changing trend of the actual cost of stock, we can choose the appropriate method of inventory valuation. For example, in the case of serious inflation, prices are rising. We can use the last in first out method, and in the case of a downward trend in prices, we can adopt the FIFO method, so that the cost of inventory will enter the operating cost of enterprises as soon as possible and reduce their profits, thereby reducing their income tax.