I. Employee's salary
The part of the employee's salary that has not been actually paid out in the current year shall be adjusted for tax purposes during the remittance of income tax.
Policy basis: (1) Article 34 of the Regulations for the Implementation of the Enterprise Income Tax Law, enterprises are allowed to deduct reasonable salary and wage expenses. Wages and salaries, refers to all the cash or non-cash labor remuneration paid by the enterprise to the employees serving or employed in the enterprise in each tax year, including basic wages, bonuses, allowances, subsidies, year-end raises, overtime pay, as well as other expenditures related to the employee's service or employment. (2) The State Administration of Taxation (SAT) Circular on the Deduction of Wages, Salaries and Employee Welfare Expenses of Enterprises (Guo Shui Han [2009] No. 3).
If the wages accrued by a state-owned enterprise exceed the amount approved by the higher level, the excess will be adjusted upward to the taxable income.
Policy basis: State Administration of Taxation (SAT) "Notice on the Deduction of Wages, Salaries and Employee Welfare Expenses of Enterprises" (State Taxation Letter [2009] No. 3): "Enterprises of state-owned nature shall not pay wages and salaries in excess of the limited amount granted by the relevant government departments;
The excess shall not be counted as part of the total amount of wages and salaries of the enterprise, and shall not be included in the calculation of the enterprise's taxable income. be deducted in calculating the enterprise's taxable income."
Employee welfare expenses
Employee welfare expenses exceeding 14% of the total wages and salaries shall be adjusted to the taxable income.
Policy basis: "Regulations for the Implementation of the Enterprise Income Tax Law," Article 40 of the employee welfare expenses incurred by the enterprise, not more than 14% of the total wages and salaries are allowed to be deducted.
Enterprises with a balance of accumulated employee welfare expenses in previous years, the current year's employee welfare expenses are not first offset the balance, in the costs and expenses charged to the increase in taxable income.
Policy basis: the State Administration of Taxation "on the issue of deduction of wages and salaries and employee welfare costs of enterprises notice" (State Taxation Letter [2009] No. 3): "employee welfare costs incurred in 2008 and subsequent years, should be first offset by the balance of the cumulative employee welfare costs of previous years, but have not yet been used in practice, the shortfall is in accordance with the provisions of the new EIT Law. Deduction."
Expenditures of various welfare nature, such as subsidies for heating costs, summer cooling costs for employees, hardship subsidies for employees, subsidies for employee canteen expenses, and transportation subsidies for employees, should be accounted for in the "Remuneration payable to employees - Employee Welfare Expenses" account, or else, the taxable income should be adjusted upward.
Policy basis: State Administration of Taxation "on the issue of deduction of wages and salaries and employee welfare costs" (State Taxation Letter [2009] No. 3).
C. Labor Union Funds
If the labor union funds are not actually allocated, the taxable income will be increased.
Policy basis: "Regulations for the Implementation of the Enterprise Income Tax Law," Article 41 of the enterprise's allocation of labor union funds, not more than 2% of the total amount of wages and salaries are allowed to be deducted.
If the expenditure of labor union funds is not supported by legal and valid certificates such as "Special Receipt for Labor Union Funds Income", the taxable income will be increased.
Policy basis: State Administration of Taxation "on trade union funds on the issue of pre-tax deduction of enterprise income tax vouchers" No. 24 of 2010: "Since July 1, 2010, the enterprise allocated to the employees of the trade union funds, not more than 2% of the total wages and salaries of the portion of the trade union funds issued by the trade union organization of the "trade union funds revenue special receipt" in the enterprise income tax deduction. pre-tax deduction." State Administration of Taxation, Announcement on Issues Concerning the Vouchers for Pre-tax Deduction of Enterprise Income Tax on behalf of Labor Union Funds Collected by Tax Authorities, No. 30 of 2011, "Since January 1, 2010, in the areas where tax authorities are entrusted with the collection of labor union funds on behalf of labor union funds, the labor union funds appropriated by the enterprises may also be deducted pre-tax by virtue of the lawful and valid vouchers for collection of labor union funds in accordance with the law. "
Fourth, employee education expenses
The expenditure on employee education expenses, more than 2.5% of the total wages, shall not be deducted in the current period (except for software production enterprises), and increase the taxable income.
Policy basis: Article 42 of the Regulations for the Implementation of the Enterprise Income Tax Law Except as otherwise provided by the competent financial and tax authorities of the State Council, the expenditure on employee education expenses incurred by an enterprise shall be allowed to be deducted to the extent that it does not exceed 2.5% of the total amount of wages and salaries;
The portion that exceeds this amount shall be allowed to be deducted in the subsequent tax years.
According to the "State Administration of Taxation on the implementation of enterprise income tax on a number of tax issues in the implementation of the notice" (State Taxation Letter [2009] No. 202) provides: "Fourth, software production enterprises, pre-tax deduction of employee education expenses Software production enterprises incurred in employee education expenses in the staff training costs, according to the "Ministry of Finance, State Administration of Taxation on the implementation of the preferential policies of enterprise income tax notice" (State Taxation Letter [2009] No. 202). According to the Circular of the Ministry of Finance and State Administration of Taxation on Certain Preferential Policies for Enterprise Income Tax (Cai Shui [2008] No. 1), the full amount can be deducted before enterprise income tax. Software manufacturing enterprises should accurately divide the expenditure on employee training fees in employee education expenses, and for those that cannot be accurately divided, as well as the balance of the employee training expenses deducted from the employee education expenses after the accurate division, all of them will be deducted in accordance with the proportion stipulated in Article 42 of the Implementation Regulations."
If an enterprise has a balance of accumulated employee education expenses in previous years, the employee education expenses incurred in the current year without first offsetting the balance, and if they are charged to expenses, the taxable income will be adjusted upward.
Policy basis: State Administration of Taxation, "Notice on the Convergence of Certain Tax Matters of Enterprise Income Tax" (Guo Shui Han [2009] No. 98): "For the balance of employee education expenses that have been accrued but not yet utilized prior to 2008, the new employee education expenses incurred in 2008 and thereafter should be deducted from the balance first. If there is still a balance, it shall be left for continued use in subsequent years."
V. Business hospitality
60% of the occurrence of business hospitality expenses did not exceed the current year sales (operating) income of 5 ‰, increase the occurrence of 40%;
60% of the occurrence of more than 5 ‰ of the current year's sales (operating) income, more than the part of the increase in taxable income.
Determination of the pre-tax deduction limit for business hospitality: first calculate the amount not exceeding 5 ‰ of sales (operating) income and the actual amount of 60% of the amount incurred, and then compare the two numbers, according to the lower number to determine the deduction limit.
Business hospitality tax increase = the actual number - the lower number.
Policy basis: "Regulations for the Implementation of the Enterprise Income Tax Law" Article 43 The business entertainment expenses incurred by enterprises in connection with production and business activities shall be deducted in accordance with 60% of the amount incurred, but the maximum shall not be more than 5 ‰ of the current year's sales (operating) income.
For enterprises engaged in equity investment business (including group company headquarters, venture capital enterprises, etc.), its dividends, bonuses and equity transfer income from the investee enterprises, can be calculated in accordance with the prescribed proportion of business hospitality deduction limit.
Sixth, donation expenditure
According to CaiShui 201815 Ministry of Finance State Administration of Taxation "Notice on Relevant Policies on Pre-tax Carry-forward Deduction of Public Welfare Donation Expenditures for Enterprise Income Tax", 1. The donation expenditure of an enterprise for charitable activities and public welfare undertakings through a public welfare social organization or the people's government at or above the county level (including the county level) and its constituent departments and subordinate agencies is, within
The public welfare organizations referred to in this article shall obtain the qualification for pre-tax deduction of public welfare donations in accordance with the law.
The total annual profit referred to in this article refers to the amount calculated by the enterprise in accordance with the provisions of the national unified accounting system is greater than zero.
2, the enterprise occurred in the year and the previous year's carry-over of public welfare donations, allowed in the current year pre-tax deduction of the part of the enterprise can not exceed 12% of the total annual profits.
3, the enterprise occurred in the public welfare donation expenditure is not deducted in the current year part of the pre-tax deduction, permitted to the next year to carry forward the deduction, but the carry-over period from the donation of the year following the year of the calculation of the longest shall not exceed three years.
4, the enterprise in the public welfare donation expenditure deduction calculation, should be deducted from the previous year's carry-over of the donation expenditure, and then deducted from the current year's donation expenditure.
5, this notice from January 1, 2017 onwards. September 1, 2016 to December 31, 2016 occurred in the public welfare donation expenditures are not deducted in 2016 pre-tax part, can be implemented in accordance with this notice.
The donations directly to the recipient unit charged by the enterprise shall not be deducted before tax, and the taxable income shall be adjusted upwards.
VII. Individual commercial insurance
Individual commercial insurance listed, not deductible before tax, increase taxable income.
Policy basis: "The People's Republic of China *** and the implementation of the State Enterprise Income Tax Law Regulations" Article 36 In addition to the enterprise in accordance with the relevant provisions of the State for the special types of workers to pay for personal safety insurance premiums and the State Council, the competent authorities of the State Council financial, tax regulations can be deducted for other commercial insurance premiums, the enterprise for the investor or the employee to pay for the commercial insurance premiums, shall not be deducted.
The personal accident insurance premium expenses incurred by the employees of the enterprise for business trips on transportation are allowed to be deducted by the enterprise in the calculation of taxable income.
VIII. Excessive standardized expenditure on pension insurance, medical insurance and housing provident fund
Excessive standardized expenditure on pension insurance, medical insurance and housing provident fund, more than the part of the increase in taxable income.
Policy basis: "Regulations for the Implementation of the Enterprise Income Tax Law" Article 35 Enterprises in accordance with the relevant departments of the State Council or the provincial people's government in accordance with the scope and standard of the basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums, and other basic social insurance premiums and housing provident fund for employees, are allowed to deduct.
IX. Interest expenses on loans to non-financial enterprises
The portion of interest paid in excess of the amount calculated by the financial institution's interest rate on similar loans for the same period of time will be adjusted to the taxable income.
Policy basis: the implementation of the provisions of Article 38 of the Regulations, enterprises in the production and business activities of the following interest expenses, deductions are allowed: non-financial enterprises to non-financial enterprises borrowing interest expenses, not more than the amount calculated in accordance with the financial enterprises during the same period of the same type of loan interest rate part of the amount.
Interest paid to related parties for borrowings exceeding the prescribed standard amount of related party borrowings is not deductible before tax, and the taxable income is increased.
Policy basis: Article 46 of the Enterprise Income Tax Law of the People's Republic of China (PRC) The interest expenses incurred by an enterprise in excess of the prescribed standard for the ratio of creditor investment to equity investment accepted from its related parties shall not be deducted in the calculation of taxable income.
Circular of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Tax Policies Regarding Pre-tax Deduction Standards for Interest Expenditures by Enterprises' Affiliated Parties (Cai Shui [2008] No. 121): "When calculating taxable income, the portion of the interest expenditures that an enterprise actually pays to its affiliates, which does not exceed the following prescribed ratios and the portion calculated in accordance with the relevant provisions of the Tax Law and its implementing regulations, is Deduction is allowed, and the excess shall not be deducted in the period in which it is incurred and in subsequent years.
The interest expenses actually paid by an enterprise to a related party, except for the provisions of Article 2 of this Circular, shall not exceed the following ratios: (1) for financial enterprises, 5:1;
(2) for other enterprises, 2:1. The interest expenses paid to a related party that are allowed to be deducted before tax = the amount of the investment in equity x the standard ratio x the borrowing interest rate (other enterprises are not allowed to deduct) Ratio x Borrowing Interest Rate (other enterprises not exceeding the interest rate of similar loans of financial enterprises for the same period) . Non-deductible interest expenses = all interest actually paid to related parties in the year × (1 - interest rate of similar loans of financial enterprises for the same period / actual interest rate implemented by the enterprise) × (1 - standard ratio / related debt ratio). Ratio of related debt capital = sum of average related debt investment in each month of the year / sum of average equity investment in each month of the year.
If the interest expenses incurred for the purchase of fixed assets with borrowings are expensed in finance costs on a one-time basis, they cannot be deducted before tax and will increase the taxable income.
Policy basis: "Regulations for the Implementation of the Enterprise Income Tax Law" Article 37 The enterprise in the production and operation activities of the reasonable does not need to capitalize the borrowing costs, are allowed to deduct.
If an enterprise incurs borrowings for the acquisition and construction of fixed assets, intangible assets and inventories that can only reach the pre-saleable state after more than 12 months of construction, the reasonable borrowing costs incurred during the period of acquisition and construction of the assets concerned shall be included in the cost of the assets concerned as capital expenditures and be deducted in accordance with the provisions of these Regulations.
The payment of interest without obtaining an invoice shall not be deducted before tax, and the taxable income shall be increased.
Tenth, the payment of inter-annual expenses
The payment of inter-annual rentals and other expenses deducted at once in the year of payment or belonging to the previous year's expenses deducted in the current year, for the part that does not belong to the current year, to do the tax adjustment processing.
Policy basis: Article 9 of the Regulations for the Implementation of the Enterprise Income Tax Law The calculation of taxable income of an enterprise shall be based on the principle of the accrual system, and income and expenses belonging to the current period shall be treated as the income and expenses of the current period, regardless of whether or not the money has been received or paid;
Income and expenses that do not belong to the current period shall not be treated as the income and expenses of the current period even if the money has been received or paid in the current period. Except as otherwise provided in these Regulations and the competent financial and tax authorities of the State Council.
XI, the provision of various expenses, asset impairment provisions
The provision of various expenses not actually paid in the current year, the enterprise is not allowed to deduct before income tax, increase taxable income.
Policy basis: "People's Republic of China *** and the State Enterprise Income Tax Law", Article 8 of the enterprise actually incurred in connection with the acquisition of income, reasonable expenditures, including costs, expenses, taxes, losses and other expenditures, are allowed to be deducted in the calculation of taxable income.
XII, temporary valuation of inventory materials, commodities
Valuation of inventory materials, commodities, enterprise income tax remittance still do not have access to legal documents, has been carried over the cost of the part of the pre-tax deduction is not allowed to adjust the amount of taxable income.
Policy basis: State Administration of Taxation, "Announcement on Certain Issues of Enterprise Income Tax", 2011, No. 34, Article 6 The relevant costs and expenses actually incurred by the enterprise in the current year, due to a variety of reasons for failing to obtain in a timely manner the valid vouchers for such costs and expenses, the enterprise may temporarily account for the amount incurred in accordance with the book when prepaying the quarterly income tax;
However, in the remittance of the tax, it should be
Thirteen, fixed assets depreciation accounting and tax differences
Some fixed assets depreciable life is shorter than the minimum depreciable life under the tax law, the depreciation shall not be deducted before tax, and the taxable income shall be increased. Accelerated depreciation in accordance with the provisions of the tax law is allowed to be deducted.
Policy basis: Article 60 of the Regulations for the Implementation of the Enterprise Income Tax Law Except as otherwise provided by the competent financial and taxation authorities of the State Council, the minimum depreciation period for fixed assets shall be as follows: (1) buildings, buildings, 20 years;
(2) aircraft, trains, ships, machines, machinery and other production equipment, 10 years;
(3) appliances, tools, furniture and other equipment related to production and business activities, 10 years;
(3) the production and business activities, 10 years;
(4) the production and business activities, 10 years. (c) appliances, tools, furniture, etc. related to production and business activities, for five years;
(d) means of transportation other than airplanes, trains and ships, for four years;
(e) electronic equipment, for three years.
Invested in houses, buildings and some machinery and equipment are recorded at appraised value and depreciated, failing to provide legal and valid bills, the depreciation shall not be deducted before tax, and the taxable income shall be increased.
Fourteen, non-taxable income for expenditure on the formation of costs or assets
The use of financial special funds to purchase fixed assets and depreciation, the depreciation shall not be deducted before tax, should be adjusted to increase the taxable income.
Policy basis: "Provisional Regulations of the Enterprise Income Tax Law," Article 28 of the enterprise's non-taxable income for the expenditure of the formation of costs or property, shall not be deducted or calculated corresponding depreciation, amortization deduction.
Article 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Handling of Enterprise Income Taxes on Special Purpose Fiscal Funds (Cai Shui [2009] No. 87): "The expenses formed by the use of non-taxable income for expenditures shall not be deducted in the calculation of taxable income;
The depreciation of assets formed by the use of expenditures shall not be deducted or calculated corresponding to the depreciation and amortization of the assets, amortization shall not be deducted in calculating taxable income."
XV. Distinguish between revenue expenditure and capital expenditure
The purchase of items eligible for fixed assets, a one-time expense, should be adjusted to increase taxable income (less depreciation deductible in the current year, if not deductible depreciation can be done to reduce taxable treatment).
Policy basis: "Regulations for the Implementation of the Enterprise Income Tax Law" Article 28 The expenditure incurred by the enterprise should distinguish between revenue expenditure and capital expenditure. Revenue expenditure is directly deducted in the period in which it is incurred;
Capital expenditure should be deducted in installments or included in the cost of the relevant assets, and shall not be directly deducted in the period in which it is incurred.
Sixteen, deemed sales
Goods, property, services for donations, debt repayment, sponsorship, fund-raising, advertising, samples, employee benefits or profit distribution and other purposes, not treated as sales, should be adjusted to increase taxable income.
Policy basis: "Regulations for the Implementation of the Enterprise Income Tax Law," Article 25 Enterprises non-monetary asset exchange, as well as the use of goods, property, services for donations, debt repayment, sponsorship, fund-raising, advertising, samples, employee welfare or profit distribution and other purposes, shall be treated as the sale of goods, the transfer of property or the provision of services, but the State Council competent departments in charge of finance and taxation, except as otherwise provided. The State Administration of Taxation, "Notice on the Issues of Income Tax Treatment for Disposal of Assets by Enterprises" (Guo Shui Han [2008] No. 828), Article 2: "Enterprises shall transfer assets to others in the following circumstances, which are not internal disposal of assets because the ownership of the assets has been changed, and shall determine the income by treating the assets as if they were sold in accordance with the regulations.
2, For social entertainment;
3. For employee incentives or benefits;
4. For dividend distribution;
5. For external donations;
6. For other purposes that have changed the ownership of the asset."
XVII. Unpayable amounts payable for more than three years
Unpayable amounts payable for more than three years are adjusted upward to the taxable income. (Depending on the local situation)
Policy basis: Article 22 of the Regulations for the Implementation of the Enterprise Income Tax Law Other income referred to in Article 6 (9) of the Enterprise Income Tax Law refers to other income obtained by an enterprise in addition to the income provided for in Article 6 (1) to (8) of the Enterprise Income Tax Law, including income from the overflow of enterprise assets, income from the deposits of overdue packages, really unable to pay the Payables, receivables recovered after bad debt losses have been processed, debt restructuring income, subsidy income, liquidated damages income, exchange gains and so on.
Article 7 of the Letter on Answers to Questions on Relevant Policies on Enterprise Income Tax (SBP [2010] No. 5) of the Income Tax Division of the State Administration of Taxation of Hebei Province: "Enterprises should give reasonable explanations for the outstanding amounts payable for more than three years and provide relevant evidence (such as evidence proving that the creditors have not recognized the losses and deducted them before tax in accordance with the regulations) which can be repaid after confirmation by the tax authorities. confirmed by the tax authorities, it can be excluded from the taxable income. If the creditor is unable to provide effective proof or cannot provide a reasonable explanation, the loss shall be incorporated into taxable income. Unpaid amounts payable that have been consolidated into taxable income shall be deducted in the year of payment when they are actually paid in subsequent years."
XVIII. Asset Losses
If the occurrence of asset losses is deducted before tax without declaring to the tax authorities, the taxable income shall be adjusted upward.
Policy basis: State Administration of Taxation, "Administrative Measures for Pre-tax Deduction of Enterprise Asset Losses for Income Tax Purposes" (State Administration of Taxation Announcement No. 25 of 2011), Article 5: "Losses of assets incurred by an enterprise shall be declared to the competent tax authorities in accordance with the prescribed procedures and requirements before they can be deducted before tax. Losses not declared shall not be deducted before tax."
XIX, administrative fines, tax late fees
Administrative fines and tax late fees charged in non-operating expenditures shall not be deducted before enterprise income tax, and shall be adjusted to the taxable income.
Article 10 of the Enterprise Income Tax Law When calculating taxable income, the following expenditures shall not be deducted:
(c) late tax payment;
(d) fines, penalties, and losses of confiscated property;
XX. Unqualified invoices for expenses
Unqualified invoices are obtained in the expenses (including: invoices with no tax supervisory seal;
Counterfeit invoices;
Other invoices in violation of the provisions of the invoice management situation.)
XXI, advertising and business promotion expenses
The actual advertising and business promotion expenses incurred in the current year are lower than the deduction limit stipulated in the tax law, and the deduction carried forward from previous years to the current year is treated as a tax reduction. (The amount incurred in the current year plus the amount of reduction shall not exceed 15% of the current year's sales (business) income)
Policy basis: Article 44 of the Regulations for the Implementation of the Enterprise Income Tax Law The qualified advertising and business promotion expenses incurred by an enterprise shall be allowed to be deducted if the expenses do not exceed 15% of the current year's sales (business) income except as otherwise provided by the competent departments of the State Council in charge of finance and tax;
The excess shall be allowed to be deducted in the current year's sales (business) income. p> More than part of the deduction is allowed to be carried forward in the next tax year.
Twenty-two, handling fees, commission expenses
According to Cai Shui [2009] No. 29 Ministry of Finance, the State Administration of Taxation "on the policy of pre-tax deduction of enterprise handling fees and commission expenses notice" provides:
The enterprise production and operation-related handling fees and commission expenses, not exceeding the following calculation limit within the portion of the deduction is permitted;
< p> Over the portion shall not be deducted. p> No deduction is allowed for the excess.(1) insurance enterprises: property insurance enterprises according to the current year's total premium income after deducting the surrender premiums, etc. 15% of the balance of the calculation of the limit (including this number, the same below);
life insurance enterprises according to the current year's total premium income after deducting the surrender premiums, etc. 10% of the balance of the calculation of the limit.
(2) Other enterprises: the limit is calculated at 5% of the amount of revenue recognized by service agreements or contracts signed with intermediary service agencies or individuals with legal business qualifications (excluding both parties to the transaction and their employees, agents and representatives, etc.).
Enterprises should sign agency agreements or contracts with intermediary service enterprises or individuals with legal business qualifications and pay handling fees and commissions in accordance with relevant state regulations. Except for entrusting individuals to act as agents, the handling fees and commissions paid by enterprises in cash and other non-transferring methods shall not be deducted before tax. The fees and commissions paid by the enterprise to the relevant securities underwriting organization for the issuance of equity securities shall not be deducted before tax.
Enterprises are not allowed to include handling fees and commissions in expenses such as rebates, business commissions, rebates and entrance fees.
Expenses for fees and commissions that have been included in fixed assets, intangible assets and other related assets should be deducted by depreciation, amortization, etc., and should not be deducted directly in the period in which they are incurred.
Enterprises should truthfully provide the local competent tax authorities with the allocation of the year's fees and commissions and other relevant information, and obtain legal and authentic documents in accordance with the law.
Twenty-three, exchange loss
According to the "Regulations for the Implementation of the Enterprise Income Tax Law" (State Council Decree No. 512), Article 39, enterprises in currency transactions, as well as the end of the tax year will be monetary assets and liabilities other than Renminbi in accordance with the end of the period of the spot Renminbi exchange rate of the median exchange rate of the exchange loss arising from Renminbi, in addition to the cost of the asset has been included in the cost and profit distribution to the owners. and the portion related to profit distribution to owners, are allowed to be deducted.
XXIV. Party Organization Expenses
Early and recently, the Ministry of Organization and other departments of the Central Committee jointly issued the "Circular of the Central Organization Department of the Central Committee of the People's Republic of China, the Ministry of Finance, and the State Administration of Taxation on the Issues of Work Expenses of Party Organizations of Non-Publicly Owned Enterprises" (Group General [2014] No. 42), "Circular of the Central Organization Department of the Central Committee of the People's Republic of China, the Ministry of Finance, the Party Committee of the State Council SASAC, and the State Administration of Taxation on the Notice on the Issues of Work Expenses for Party Organizations of State-owned Enterprises (Group General Word [2017] No. 38), both of which make clear the proportion and scope of payment.
Applicable objects
Party organizations of state-owned enterprises (including wholly state-owned, wholly-owned, and state-capital-absolutely-controlled and relatively-controlled enterprises) and non-public enterprises.
Expense Limit
1. Party Organizations of State-owned Enterprises
(1) The working expenses of party organizations of state-owned enterprises (including wholly state-owned, wholly-owned, and absolutely and relatively state-owned enterprises) shall be resolved mainly through the inclusion of administrative expenses and the retention of party fees. Included in the part of the management costs, generally in accordance with the proportion of 1% of the total wages of the employees of the enterprise in the previous year, at the beginning of each year by the enterprise party organization in line with the principle of economy of preparation of the funding plan, the enterprise into the annual budget.
(2) included in the administrative expenses of the party organization's working expenses, the actual expenditure does not exceed 1% of the employee's total annual working salary, can be deducted before the enterprise income tax accordingly. If there is a balance at the end of the year, it will be carried forward to the next year. Accumulated carry-over of more than 2% of the previous year's total employee salaries, the year is no longer arranged from the administrative expenses.
2, non-public party organizations
According to the "People's Republic of China *** and the State Company Law", "the company should provide the necessary conditions for the activities of the party organization," the provisions and the Chinese Office of the [2012] No. 11 document "the establishment and implementation of the pre-tax expense system
Scope of expenses
1, to carry out party study and education, hold party meetings, carry out "two studies and one do" study and education, "three meetings and one lesson", theme party day, training party members, party activists and party workers, subscription or purchase of newspapers and magazines used to carry out party education. Purchase of newspapers, magazines, materials, audio-visual products and equipment for the education of party members, party publicity, and the production of party members' e-learning films;
2. Organize and carry out the creation of excellence and the party's vanguard post, party responsibility area, party commando team, party members' voluntary service and other thematic practical activities;
3. Recognize and reward advanced grass-roots party organizations, outstanding ****-production party members and outstanding party workers;
4. p>
4, party organizations, management of mobile party members, transfer of organizational relations, party flags and emblems equipped with party building work investigation and research;
5, visits, condolences, subsidies to party members in difficult life situations and old party members;
6, leasing and repair, maintenance of party organizations, new construction, purchase of activity facilities, research and development and maintenance of the party building work of information technology platform;
7, Other work directly related to party building. Where the use of party fees, first from the retention of party fees, the shortfall from the party organization work expenses included in the management costs charged.
1, VAT general taxpayers, you can get the VAT invoices related to the scope of the expenses mentioned, in addition to visits, condolences, subsidies for party members in difficulty, other cases can be deducted input tax according to the provisions.
2, recognition of outstanding party members to obtain bonuses, should be included in the current month's salary, combined calculation to pay personal income tax;
3, to obtain subsidies for living in difficulty, according to the provisions of the individual income tax is not required to be paid;
4, the enterprise income tax return form to fill out the form, you should pass the expenses of this type through the "People's Republic of China *** and the State of the Enterprise Income Tax Annual Tax Returns" (Class A. 2017 Edition), A105000 "Tax Adjustment Items Detail Table" line 29 "(XVI) Party Organization Working Expenses": fill in the taxpayer according to the relevant documents, for the innovation of grassroots party building work, the establishment of a stable system of financial security of the party organization working expenses incurred and tax adjustments.
Twenty-five, non-deductible items
(1) dividends paid to investors, dividends and other equity investment income payments.
(2) Enterprise income tax.
(3) Late payment of tax;
Fines, penalties and losses of confiscated property.
(4) Donation expenses other than public welfare donations.
(5) sponsorship expenditure. It refers to a variety of non-advertising expenditures incurred by enterprises unrelated to production and business activities.
(6) unauthorized reserve expenditure. Refers to the State Council's financial and tax authorities do not meet the provisions of the asset impairment provisions, risk provisions and other reserve expenditures.
(7) Other expenditures not related to the acquisition of income.
What matters should be reduced taxable income
Income from equity investment. Qualified resident enterprises are exempted from income tax on dividends, bonuses and other equity investment income between them;
Non-resident enterprises that have set up establishments in China obtain from resident enterprises dividends, bonuses and other equity investment income that is physically connected with such establishments. All of the above investment income does not include the investment income obtained from continuously holding stocks publicly issued and listed for circulation by resident enterprises for less than 12 months.
Income from technology transfer. Within a tax year, the portion of technology transfer income of a resident enterprise not exceeding 5 million yuan is exempted from enterprise income tax;
the portion exceeding 5 million yuan is reduced by half of the enterprise income tax.
Interest income from treasury bonds. Interest income derived from the purchase of treasury bonds is exempted from enterprise income tax.
Loss compensation. If an enterprise incurs a loss, it can make up for it with the next year's income. If the next year's income is not enough to make up for it, it can continue to make up for it year by year, but the longest time shall not be more than 5 years.
Engaged in agriculture, forestry, animal husbandry, fishery projects. In addition to the half-reduced enterprise income tax on the cultivation of flowers, tea and other beverage crops and spice crops, sea water aquaculture, inland aquaculture, enterprises engaged in other agriculture, forestry, animal husbandry and fishery projects are exempt from enterprise income tax.
Income from investment and operation of public **** infrastructure projects supported by the state. From the year in which the project obtains the first production and operation income, the enterprise income tax is exempted from the first to the third year, and the enterprise income tax is reduced by half from the fourth to the sixth year.
Income from qualified environmental protection, energy and water conservation projects. Starting from the tax year in which the project obtains the first production and operation income, the income tax is exempted from the first year to the third year, and is halved from the fourth year to the sixth year.
Additional Deduction. The research and development expenses incurred by enterprises for developing new technologies, products and processes, which are not formed into intangible assets and are recognized as current profit and loss, shall be deducted on the basis of actual deduction in accordance with the regulations, in accordance with the deduction of 50% or 75% of the research and development expenses;
If the intangible assets are formed, the amortization shall be in accordance with the cost of the intangible assets, which shall be 150% or 175% of the cost of the intangible assets. Enterprises placing disabled persons, in accordance with the wages paid to disabled workers in accordance with the actual deduction based on the wages paid to disabled workers, in accordance with the wages paid to disabled workers 100% deduction.
Venture capital enterprises. Venture capital enterprises that have invested in unlisted small and medium-sized hi-tech enterprises for more than 2 years can deduct the taxable income of the venture capital enterprise according to 70% of the investment in the year when the equity is held for 2 years;
If the deduction is not enough in the current year, it can be carried forward to be deducted in the following tax years.
Comprehensive utilization of resources. Revenue derived from the production of products that are not restricted or prohibited by the state and comply with the relevant national and industry standards by using the resources specified in the Catalogue of Enterprise Income Tax Preferences for Comprehensive Utilization of Resources as the main raw materials shall be reduced by 90% and counted as part of the total revenue.
Acquisition of energy-saving and emission reduction equipment. Enterprises purchasing special equipment for environmental protection, energy and water conservation, and production safety in accordance with state regulations, 10% of the investment in the special equipment can be offset from the enterprise's taxable amount for the year;
If the credit is insufficient for the year, it can be carried forward for the next five tax years.
Non-taxable income. The first is the financial allocation, the second is the administrative fees and governmental funds collected and included in the financial management according to the law, and the third is the other non-taxable income stipulated by the State Council.