Standards for Specific Deductions
1. Wages and Salaries Reasonable wages and salaries incurred by an enterprise are allowed to be deducted. Wages, salaries, refers to all cash or non-cash form of labor remuneration paid by the enterprise to the employees in the enterprise's service or employment in each taxable year, including basic wages, bonuses, allowances, subsidies, year-end raises, overtime pay, and other expenditures related to the service or employment. The provisions of this article can be understood from the following aspects: (1) Salary and wage expenses must be actually incurred. As the pre-tax deduction item of salary and wages expenditure, it should be the part of salary and wages expenditure that the enterprise has actually paid to its employees, and the so-called payable salary and wages expenditure that has not yet been paid can not be deducted in the tax year in which it has not been paid, and it is only after it has been actually incurred that the pre-tax deduction is permitted. (2) Wages and salaries are paid to employees who are employed by the enterprise. (3) The standard of wages and salaries should be limited to a reasonable range. (4) Wages and salaries are expressed in all cash and non-cash forms. (5) Types of wages and salaries. Regardless of the name of the enterprise to pay such expenditures, what is called, where such expenditures are due to the employees in the enterprise or employed by the enterprise, it is wages and salaries expenditure, not confined to the formal name.
2, employee welfare, labor union funds, employee education expenses exceeding the standard deduction according to the standard, did not exceed the standard deduction according to the actual deduction. (1) employee welfare expenses incurred by the enterprise, not more than 14% of the total wages and salaries are allowed to deduct. (2) The part of labor union funds allocated by the enterprise not exceeding 2% of the total wages and salaries is allowed to be deducted. (3) Except for the regulations of the competent departments of finance and taxation under the State Council or the provincial people's government, the enterprise is allowed to deduct the portion of employee education expenses not exceeding 2.5% of the total wages and salaries, and the portion exceeding that amount is allowed to be carried forward for deduction in the following tax years.
3. Insurance premiums (1) The insurance premiums paid by enterprises participating in property insurance in accordance with the regulations are allowed to be deducted. (2) Deductions are allowed for the "five insurance premiums and one gold" paid by enterprises for their employees in accordance with the scope and standards stipulated by the relevant authorities of the State Council or provincial people's governments, i.e., basic social insurance premiums such as basic old-age insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury premiums, maternity insurance premiums, etc., as well as housing provident funds. (3) Deductions shall be allowed for supplementary pension insurance premiums and supplementary medical insurance premiums paid by an enterprise for its investors or employees, within the scope and standards stipulated by the competent departments of finance and taxation of the State Council. (4) Commercial insurance premiums paid by an enterprise for investors or employees shall not be deducted. The personal safety insurance premiums paid by an enterprise for special types of workers in accordance with relevant state regulations and the commercial insurance premiums that are deductible in accordance with the regulations of the competent financial and taxation departments of the State Council are allowed to be deducted.
4. Interest expenses 1/3 Interest expenses incurred by an enterprise in its production and business activities shall be deducted in accordance with the following provisions: (1) Interest expenses incurred by a non-financial enterprise for borrowing from a financial enterprise, interest expenses incurred by a financial enterprise on its deposits and interest expenses incurred on interbank lending and interest expenses incurred by an enterprise on the issuance of bonds approved by the enterprise may be deducted according to the facts. (2) Interest expenses on loans from non-financial enterprises to non-financial enterprises may be deducted to the extent that they do not exceed the amount calculated in accordance with the interest rate of similar loans of financial enterprises for the same period, and no deduction shall be allowed for the exceeding portion.
5. Borrowing Costs (1) Reasonable borrowing costs incurred by an enterprise in its production and business activities that do not need to be capitalized are allowed to be deducted. (2) Enterprises for the acquisition, construction of fixed assets, intangible assets and inventory after more than 12 months of construction in order to achieve the intended state of sale of the borrowing, the reasonable borrowing costs incurred during the acquisition and construction of the assets should be capitalized as capital expenditure to the cost of the assets; the assets are delivered to the use of the interest on the borrowing can be deducted in the period of incurred.
6, business hospitality expenses Business hospitality expenses incurred in connection with production and business activities, in accordance with the amount of 60% deduction, but the maximum shall not exceed the current year's sales (operating) income of 5 ‰. Compare the current business entertainment expenses of 60% and the current year's sales revenue of 5 ‰, whichever is smaller. Note: The excess shall not be carried forward to future years.
7, advertising and business promotion costs Advertising and business promotion costs in addition to the State Council financial, tax authorities provide otherwise, not more than 15% of sales (operating) income, the part of the deduction is allowed; more than part of the deduction is allowed to be carried forward to future tax years. The advertising expenses declared by the enterprise for deduction should be strictly distinguished from the sponsorship expenses. The advertising expenses declared by enterprises for deduction must meet the following conditions: the advertisements are produced by specialized agencies approved by the industrial and commercial departments; the expenses have been actually paid and the corresponding invoices have been obtained; and the advertisements are disseminated through certain media. Example: a company's income in the first year is 1,000,000 yuan, and the actual advertising and business promotion expenses are 250,000 yuan, the standard deduction in the first year is 100×15%=150,000 yuan; the tax adjustment is increased by 100,000 yuan, but the 100,000 yuan can be carried forward to the next tax year. If the income of the second year is 5 million, the actual advertising expenditure is 600,000, the deduction standard is 500×15%=750,000. 600,000 is less than 750,000, and 600,000 can be fully deducted. At the same time, the 100,000 carried over from the previous year can also be deducted, the actual deduction of 700,000 yuan.
8, leasing fees Enterprises according to the needs of production and business activities to rent fixed assets to pay the lease payments, in accordance with the following methods of deduction: (1) leased fixed assets under operating leases incurred leasing fee expenses, in accordance with the lease term uniform deduction. (2) Lease payments for fixed assets leased under finance leases shall be deducted in installments by drawing depreciation expense on the portion that constitutes the value of the fixed assets leased under finance leases in accordance with the regulations.
9, labor protection expenses Reasonable labor protection expenses incurred by the enterprise are allowed to be deducted.
10, public welfare donation expenditure
11, the cost of the assets concerned The costs incurred by the enterprise to transfer all types of fixed assets are allowed to be deducted. Deductions are allowed for depreciation of fixed assets, amortization of intangible assets and deferred assets calculated by the enterprise in accordance with the regulations.
12. Loss of Assets The net loss of fixed assets and current assets incurred in the current period shall be allowed to be deducted after the competent tax authorities have examined and approved the inventory information provided by the enterprise; the input tax which shall not be deducted from the write-off tax due to the inventory loss, destruction and scrapping shall be regarded as the enterprise's property loss, and shall be allowed to be deducted together with the loss of inventory in accordance with the regulations before the income tax is calculated.
No deduction shall be allowed for the loss of inventory, and the deduction shall be made according to the regulations before the income tax is calculated.
Items not to be deducted 1. Dividends, bonuses and other equity investment income paid to investors. 2. 2. Enterprise income tax. 3, tax late payment, refers to the taxpayer violates the tax laws and regulations, was imposed by the tax authorities late payment. Losses on fines, penalties and confiscated property refer to fines imposed by the relevant authorities, as well as penalties and confiscated property imposed by the judicial authorities on taxpayers for violating relevant state laws and regulations. (5) Donation expenditure exceeding the prescribed standard. Sponsorship expenditure refers to all kinds of non-advertising expenditures incurred by enterprises that are not related to production and operation activities. 7. Unapproved reserve expenditure refers to the reserve expenditure for asset impairment and risk provision which is not in accordance with the regulations of the competent financial and taxation departments of the State Council. Management fees paid between enterprises, rents and royalties paid between business organizations within an enterprise, and interest paid between business organizations within a non-banking enterprise shall not be deducted. 9, other expenses not related to the acquisition of income.