Core Viewpoint - The article emphasizes the importance of accurately reporting value-added tax (VAT) income, including both invoiced and non-invoiced income, to avoid legal penalties and ensure compliance with tax regulations [3][4]. Group 1: VAT Reporting Obligations - VAT taxpayers must report all income, including non-invoiced income, in the VAT declaration form, as per the regulations outlined in the Provisional Regulations on Value-Added Tax of the People's Republic of China [3][4]. - Failure to report non-invoiced income can lead to severe consequences, including tax recovery, late fees, and potential criminal charges for tax evasion [4]. Group 2: Reporting for General and Small-Scale Taxpayers - General VAT taxpayers must fill out specific sections in the VAT declaration form for non-invoiced income, detailing sales amounts and applicable tax rates [6]. - Small-scale VAT taxpayers are exempt from VAT if their total monthly sales do not exceed 100,000 yuan or quarterly sales do not exceed 300,000 yuan [7]. - If small-scale taxpayers exceed the quarterly sales threshold of 300,000 yuan, they must report non-invoiced income in the appropriate sections of the VAT declaration form [8].

Core Viewpoint - The article discusses recent updates on tax policies for small and micro enterprises in China, particularly focusing on the prepayment of corporate income tax and the benefits related to R&D expense deductions. Group 1: Corporate Income Tax Prepayment - Small and micro enterprises are required to prepay corporate income tax on a quarterly basis, as per the announcement by the State Taxation Administration [4] - Enterprises that were previously paying monthly can switch to quarterly prepayment if they meet the criteria for small and micro enterprises during the prepayment periods in April, July, and October [4] - The new regulations took effect on January 1, 2023, and the previous announcement regarding small and micro enterprises' tax policies has been abolished [4][8] Group 2: R&D Expense Deductions - Enterprises can enjoy R&D expense deductions during their prepayment submissions in July and October if they accurately account for their R&D expenses [7] - The policy allows enterprises to choose to apply for the R&D expense deduction based on their actual R&D expenditures, either during the mid-year or at the annual settlement [10] - The announcement regarding the optimization of R&D expense deductions also took effect on January 1, 2023 [10][8] Group 3: Tax Settlement Procedures - Enterprises must submit their annual corporate income tax returns within five months after the end of the tax year to reconcile any overpayments or underpayments [12] - If an enterprise has prepaid more tax than what is due, it should apply for a tax refund, which the tax authority is required to process promptly [12]