The Enterprise Income Tax Law stipulates that the reasonable expenditures actually incurred by an enterprise in connection with the acquisition of income, including costs, expenses, taxes, losses and other expenditures, are allowed to be deducted in the calculation of taxable income. In practice, the calculation of taxable income should also pay attention to three aspects: ① The expenditure incurred by the enterprise should be distinguished between revenue expenditure and capital expenditure. Revenue expenses are directly deducted in the period in which they are incurred; capital expenditures should be deducted in installments or included in the cost of the asset in question, not directly deducted in the period in which they are incurred. ② The non-taxable income of the enterprise for the expenses incurred in the expenditure of the formation of costs or property, shall not be deducted or calculated corresponding depreciation, amortization deduction. ③ Except as otherwise provided in the Enterprise Income Tax Law and these Regulations, the costs, expenses, taxes, losses and other expenditures actually incurred by the enterprise shall not be deducted repeatedly.
1. Cost. It refers to the cost of sales, cost of goods sold, business expenditures, and other consumptions incurred by the enterprise in its production and operation activities, i.e., the cost of the enterprise's sales of commodities (products, materials, scraps, wastes, waste materials, etc.), provision of labor services, and the transfer of fixed assets and intangible assets (including technology transfer).
Enterprises must be the costs incurred in business activities are reasonably divided into direct costs and indirect costs. Direct costs are direct materials, direct labor, etc. that can be directly included in the operating costs of the relevant costing object or labor. Indirect cost refers to multiple departments to provide services for the same cost object *** the same cost, or the same inputs can be manufactured, provide two or more products or services of the joint cost.
Direct costs may be charged directly to the operating costs of the costing object or labor in question on the basis of the relevant accounting documents and records. Indirect costs must be allocated to the relevant costing object in a reasonable way based on the cause and effect relationship with the costing object, the output of the costing object, and so on.
2. Expenses. Refers to the enterprise each tax year for the production and operation of goods and the provision of labor services, etc. incurred in the sales (operating) expenses, administrative expenses and financial expenses. Except for the relevant expenses that have been included in the cost.
Selling expenses are expenses incurred for the sale of goods that should be borne by the enterprise, including advertising, transportation, loading and unloading, packaging, exhibition costs, insurance, sales commissions (can be directly identified as import commissions to adjust the cost of goods into the price), the sale of commission, operating leases, and travel expenses incurred by the sales department, wages, benefits and other costs.
Management costs refers to the administrative department of the enterprise for the management of the organization's business activities to provide various support services and costs incurred.
Finance costs are the costs incurred by the enterprise to raise operating funds, including net interest expenses, net exchange losses, financial institution fees and other non-capitalized expenses.
3. Taxes. It refers to the enterprise incurred in addition to the enterprise income tax and allow the deduction of value-added tax other than the enterprise to pay the various taxes and their surcharges, that is, the enterprise in accordance with the provisions of the payment of consumption tax, business tax, urban maintenance and construction tax, customs duties, resource tax, land value-added tax, property tax, vehicle and vessel tax, land use tax, stamp duty, education surcharge and other taxes and surcharges on the sale of products. These taxes are allowed to be deducted before tax. There are two ways to allow the deduction of taxes: one is deducted in the period in which it occurs; the other is charged to the cost of the relevant assets in the period in which it occurs, and deducted in the subsequent periods of apportionment.
4. Loss. Refers to the enterprise in the production and business activities of fixed assets and inventory losses, destruction, scrapping losses, transfer of property losses, bad debt losses, bad debt losses, natural disasters and other force majeure factors caused by losses and other losses.
Losses incurred by an enterprise, less the balance of the compensation of the responsible person and insurance claims, shall be deducted in accordance with the provisions of the competent financial and tax authorities of the State Council.
Assets that have been treated as losses by an enterprise and are fully or partially recovered in subsequent tax years shall be recognized as current income.
5. Other expenses deducted. It refers to the reasonable expenditures related to production and operation activities incurred by the enterprise in the production and operation activities, except for costs, expenses, taxes and losses.
Standards for Deduction Items
When calculating taxable income, the following items can be deducted in accordance with the actual amount incurred or the prescribed standards.
1. Wage and Salary Expenses
Reasonable wage and salary expenses incurred by an enterprise are allowed to be deducted. Wages and salaries are all the cash or non-cash labor remuneration paid to the employees who work in the enterprise or have employment relationship with the enterprise in each taxable year, including basic wages, bonuses, allowances, subsidies, year-end raises, overtime wages, and other expenditures related to the position or employment.
2. Employee welfare expenses, labor union expenses, and employee education expenses.
Employee welfare expenses, labor union expenses, and employee education expenses incurred by an enterprise are deducted in accordance with the standard; those not exceeding the standard are deducted on the basis of the actual number, and those exceeding the standard can only be deducted on the basis of the standard.
(1) Employee welfare expenses incurred by enterprises are allowed to be deducted up to 14% of the total wages and salaries.
(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 as otherwise provided by the competent financial and tax authorities of the State Council, the expenditure incurred by an enterprise for employee education shall be deducted to the extent that it does not exceed 2.5% of the total wages and salaries, with the excess being carried forward for deduction in the subsequent tax years.
3. Social insurance premiums.
(1) Deduction is allowed for the "five insurance premiums and one gold" paid by the enterprise for the employees in accordance with the scope and standard stipulated by the relevant authorities of the State Council or the provincial people's government, i.e., the basic social insurance premiums such as basic old-age insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums, etc., and the housing provident fund.
(2) Supplementary pension insurance premiums and supplementary medical insurance premiums paid by an enterprise for its investors or employees shall be allowed to be deducted within the scope and standard stipulated by the competent departments of finance and taxation under the State Council. The personal safety insurance premiums paid by enterprises for employees of special work types 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.
(3) Enterprises participating in property insurance, in accordance with the provisions of the insurance premiums paid, are allowed to deduct. Commercial insurance premiums paid by enterprises for investors or employees shall not be deducted.
4. Interest expenses.
Interest expenses incurred by enterprises in production and business activities shall be deducted in accordance with the following provisions.
(1) non-financial enterprises to borrow from financial institutions, interest expenses on various deposits of financial enterprises and interest expenses on interbank lending, and interest expenses on bonds incurred by the enterprise with approval can be deducted accordingly.
(2) non-financial enterprises to non-financial institutions to borrow interest expenses, not exceeding the amount calculated in accordance with the same period of the same type of loan interest rate of financial enterprises can be deducted, and more than part of the deduction is not allowed.
The financial institutions referred to are banks, insurance companies and non-banking financial institutions authorized by the People's Bank of China to engage in financial business. Including national specialized banks, regional banks, joint-stock banks, foreign-funded banks, Chinese-foreign joint venture banks and other comprehensive banks; also including national insurance enterprises, regional insurance enterprises, joint-stock insurance enterprises, Chinese-foreign joint venture insurance enterprises, and other specialized insurance enterprises; urban and rural credit unions, various types of finance companies, and other professional and comprehensive trust investment, leasing and other businesses. Non-bank financial institutions. Non-financial institutions, refers to all enterprises, institutions and social groups and other enterprises or organizations other than the above financial institutions.
5. Borrowing costs.
(1) Reasonable borrowing costs incurred by an enterprise in the course of its production and business activities that do not need to be capitalized are allowed to be deducted.
(2) If an enterprise incurs borrowings for the acquisition and construction of fixed assets, intangible assets and inventories that can only reach the intended marketable state after more than 12 months of construction, reasonable borrowing costs incurred during the period of acquisition and construction of the relevant assets shall be capitalized and included in the cost of the relevant assets as capital expenditures; interest on borrowings incurred after the delivery of the relevant assets for use may be deducted in the period in which it is incurred. Deducted.
6. Exchange loss.
Enterprises in currency transactions, as well as the end of the tax year will be other than the RMB monetary assets, liabilities in accordance with the end of the period of the spot RMB exchange rate of the middle price of the exchange loss arising from the conversion into RMB, in addition to the cost of the assets have been included in the relevant part of the distribution of profits to the owners of the relevant part of the deduction is allowed.
7. business hospitality
Enterprises incurring business hospitality expenses related to their production and operation of business, in accordance with the amount of 60% of the deduction, but the maximum shall not exceed 5 ‰ of the current year's sales (operating) income.
8. Advertising and business promotion costs.
Enterprises incurred eligible advertising and business promotion expenses, in addition to the State Council, the competent financial and tax authorities provide otherwise, not more than 15% of the current year's sales (operating) income is allowed to be deducted; more than the part of the deduction is allowed to be carried forward to the next tax year.
Enterprises declaring the deduction of advertising expenses should be strictly differentiated from sponsorship expenses. The advertising expenses declared for deduction by enterprises must meet the following conditions: the advertisements are produced through the 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.
9. Special funds for environmental protection.
Enterprises are allowed to deduct special funds extracted for environmental protection and ecological restoration in accordance with relevant provisions of laws and administrative regulations. The special funds shall not be deducted if the purpose of the funds is changed after they are withdrawn.
10. Insurance premiums.
Enterprises participating in property insurance, in accordance with the provisions of the insurance premiums paid, are allowed to deduct.
11. Leasing fees
Leasing fees paid by enterprises to lease fixed assets according to the needs of production and operation are deducted in accordance with the following methods:
(1) Leasing fee expenses incurred in leasing fixed assets under operating leases are uniformly deducted in accordance with the term of the lease. An operating lease is a lease in which ownership is not transferred.
(2) Lease fee expenses incurred for fixed assets leased in the form of finance leases shall be deducted in installments by drawing depreciation expense on the portion constituting the value of the fixed assets leased under finance leases in accordance with the regulations. A finance lease is a lease that transfers in substance all the risks and rewards associated with ownership of an asset.
12. Labor protection expenses.
Reasonable labor protection expenses incurred by the enterprise are allowed to be deducted.
13. Public welfare donation expenses.
Public welfare donations, refers to the enterprise through the public welfare organizations or the people's government and its departments at or above the county level, for the "People's Republic of China *** and the State Public Welfare Donation Law" within the public welfare donations.
Enterprises incurred public welfare donations expenditure, not more than 12% of the total annual profits are allowed to deduct. Total annual profits, refers to the annual accounting profit calculated in accordance with the provisions of the national unified accounting system.
Public welfare social organizations, refers to the following conditions at the same time, foundations, charitable organizations and other social organizations:
(1) registered in accordance with the law, with legal personality.
(2) The development of public welfare for the purpose, and not for profit.
(3) All assets and their appreciation are owned by the legal person.
(4) The proceeds and labor balances shall be used primarily for undertakings consistent with the purpose for which the juridical person was established.
(5) The remaining property after termination shall not be vested in any individual or profit-making organization.
(6) Not to operate a business unrelated to the purpose for which it was established.
(7) Have a sound financial accounting system.
(8) The donor does not participate in any form in the distribution of the property of the social organization.
(9) The State Council's financial and tax authorities, in conjunction with the State Council's civil affairs department and other registration and management departments stipulate other conditions.
14. Expenses relating to assets.
Enterprises are allowed to deduct expenses incurred in transferring all kinds of fixed assets. Deductions are allowed for depreciation of fixed assets, amortization of intangible assets and deferred assets calculated by the enterprise in accordance with the regulations.
15. Expenses shared by the head office.
Non-resident enterprises set up in China institutions, establishments, its head office outside of China incurred in connection with the production and operation of the institutions, establishments and related costs, can provide the head office of the scope of the pool of costs, quotas, allocation of the basis and method of documentation, and a reasonable apportionment of the deduction is allowed.
16. Loss of assets.
Enterprises incurring net losses of fixed assets and current assets in the current period shall be allowed to make deductions after they provide inventory information for examination and approval by the main administrative tax authorities; enterprises shall not be allowed to deduct input tax from output tax due to inventory loss, destruction, scrapping and other reasons, which shall be regarded as property loss of the enterprise and be allowed to make deductions in accordance with the regulations together with the loss of inventories before income tax.
17. Other items that are allowed to be deducted in accordance with the relevant laws, administrative regulations and the relevant state tax laws. Such as membership fees, reasonable conference fees, travel expenses, liquidated damages, litigation costs.
Four, not deductible items
In the calculation of taxable income, the following expenditures shall not be deducted:
1. Dividends paid to investors, dividends and other equity refrigeration income payments.
2. Corporate income tax payments.
3. Late payment of tax, refers to the taxpayer violates the tax regulations, the tax authorities imposed late payment.
4. Penalties, fines and losses of confiscated property, refers to fines imposed by the relevant authorities, as well as penalties and confiscated property imposed by the judicial authorities on taxpayers for violating the relevant state laws and regulations.
5. Expenditures on donations exceeding the prescribed standards.
6. Sponsorship expenditures, refers to a variety of non-advertising expenditures incurred by the enterprise that are not related to production and business activities.
7. unauthorized reserve expenditure, refers to the State Council financial and tax authorities do not meet the provisions of the asset impairment provisions, risk provisions and other reserve expenditures.
8. 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.
V. Loss Compensation
Loss refers to the amount that is less than zero after deducting the non-taxable income, tax-exempted income and various deductions from the total income of an enterprise for each taxable year in accordance with the provisions of the Enterprise Income Tax Law and the Provisional Regulations. The tax law provides that losses incurred by an enterprise in a taxable year can be made up with the income of the following year, and if the income of the following year is not sufficient to make up for the losses, the losses can be made up on a yearly basis, but the maximum period shall not exceed 5 years. Moreover, when an enterprise calculates and pays enterprise income tax in aggregate, the losses of its overseas business establishments shall not be offset against the profits of its domestic business establishments.
Section V: Tax Treatment of Assets
Assets are properties formed as a result of capital investment. For capital expenditures and intangible assets transfers, start-up and development costs, they are not allowed to be deducted as one-time costs and expenses from the taxpayer's gross income, and can only be deducted by way of depreciation or write-back in installments. That is, the depreciation expenses of fixed assets, intangible assets and amortization expenses of long-term amortization costs used in the taxpayer's business activities can be deducted. The tax law provides that the forms of assets included in the scope of tax treatment mainly include fixed assets, biological assets, intangible assets, long-term amortized expenses, investment assets and inventories, all of which are taxed on the basis of historical cost. Historical cost refers to the expenditure actually incurred by the enterprise when it acquires the asset. The enterprise shall not adjust the taxable base of the asset during the period when the asset is held by the enterprise to increase or decrease in value, except that the competent department of finance and taxation under the State Council may recognize the gain or loss.
First, the tax treatment of fixed assets
Fixed assets refers to the enterprise for the production of products, the provision of services, rental or business management and held, the use of the period of more than l2 months of non-monetary assets, including buildings, buildings, machinery, machinery, means of transportation, as well as other production and business activities related to the equipment, appliances, tools and so on.
(a) Fixed assets tax basis
1. Fixed assets purchased are taxed at the purchase price and related taxes paid, as well as other expenses directly attributable to bringing the asset to its intended use.
2. For self-constructed fixed assets, the tax basis is the expenditure incurred before the completion of the construction.
3. Fixed assets leased under finance shall be taxed on the basis of the total amount of payments agreed in the lease contract and the related expenses incurred by the lessee in the process of signing the lease contract, and if the total amount of payments is not agreed in the lease contract, the fair value of the asset and the related expenses incurred by the lessee in the process of signing the lease contract shall be the taxable base.
4. Surplus fixed assets, the full replacement value of similar fixed assets as the tax basis.
5. Fixed assets acquired through donations, investments, non-monetary asset exchanges, debt restructuring, etc., to the fair value of the asset and the payment of the relevant residual tax basis.
6. Fixed assets that are remodeled, other than those that have been fully depreciated and those that are leased in, the taxable base is increased by the remodeling expenditures incurred in the process of remodeling.
(2) Scope of Depreciation of Fixed Assets
In calculating taxable income, enterprises are allowed to deduct depreciation of fixed assets calculated in accordance with the regulations. The following fixed assets shall not be calculated for depreciation deduction:
1. Fixed assets other than houses and buildings that have not been put into use.
2. Fixed assets leased under operating leases.
3. Fixed assets leased out under finance leases.
4. Fully depreciated fixed assets continue to be used.
5. Fixed assets not related to business activities.
6. Land that is separately valued and accounted for as a fixed asset.
7. Other fixed assets that are not eligible for depreciation deduction.
(C) the depreciation of fixed assets
1. Enterprises should be depreciated from the month after the month in which the fixed assets are put into use; fixed assets out of use, should be discontinued from the month after the month of depreciation.
2. Enterprises should be based on the nature and use of fixed assets, a reasonable determination of the estimated net residual value of fixed assets. Once determined, the estimated net residual value of fixed assets shall not be changed.
3. Depreciation of fixed assets calculated according to the straight-line method is allowed to be deducted.
(D) the depreciation of fixed assets for a period of time
Except as otherwise provided by the competent financial and taxation authorities of the State Council, the minimum period of time for calculating depreciation of fixed assets is as follows:
1. buildings, buildings, for 20 years.
2. Airplanes, trains, ships, machines, machinery and other production equipment, for 10 years.
3. Appliances, tools, furniture, etc. related to production and business activities, for 5 years.
4. Means of transportation other than airplanes, trains and ships, 4 years.
5. Electronic equipment, 3 years.
Enterprises engaged in the extraction of oil, natural gas and other mineral resources, the expenses incurred before the commencement of commercial production and the depreciation and depreciation methods of the relevant fixed assets shall be separately regulated by the competent financial and taxation authorities of the State Council.
The tax treatment of biological assets
Biological assets refer to living animals and plants. Biological assets are divided into consumable biological assets, productive biological assets and public welfare biological assets. Consumable biological assets are biological assets held for sale or harvested in the future as agricultural products, including growing farm crops, vegetables, timber forests and livestock stocked for sale. Productive biological assets are biological assets held for the purpose of producing agricultural products, providing labor, or leasing, including economic forests, fuelwood forests, and livestock and draft animals. Public welfare biological assets refer to biological assets held for the main purpose of protection and environmental protection, including wind and sand control forests, soil and water conservation forests, and water conservation forests.
(I) Taxable Base of Biological Assets
The taxable base of productive biological assets is determined in accordance with the following methods:
1. The taxable base of purchased productive biological assets is based on the purchase price and related taxes paid.
2. For productive biological assets acquired through donation, investment, non-monetary asset exchange, debt restructuring, etc., the tax basis is the fair value of the asset and the related tax paid.
(2) Depreciation Method and Depreciable Life of Biological Assets
Depreciation of productive biological assets calculated according to the straight-line method is allowed to be deducted. Enterprises shall calculate depreciation from the month following the month in which the productive biological assets are put into use; productive biological assets that have ceased to be used shall cease to be depreciated from the month following the month in which they cease to be used.
Enterprises shall reasonably determine the estimated net residual value of productive biological assets based on the nature and use of such assets. The estimated net residual value of productive biological assets shall not be changed once it is determined.
The minimum number of years for calculating depreciation of productive biological assets is as follows:
1. 10 years for productive biological assets of the forestry category.
2. Livestock type productive biological assets, 3 years.
Three, the tax treatment of intangible assets
Intangible assets refers to the long-term use of the enterprise, but there is no physical form of assets, including patents, trademarks, copyrights, land use rights, non-patented technology, goodwill and so on.
(I) Tax basis of intangible assets
The tax basis of intangible assets is determined in accordance with the following methods:
1. Intangible assets purchased out of the country are taxed on the basis of the purchase price and related taxes paid, as well as other expenditures directly attributable to bringing the asset to its intended use.
2. Self-developed intangible assets are taxed on the basis of expenditures incurred during the development process after the asset meets the conditions for capitalization and before it reaches its intended use.
3. Intangible assets acquired through donations, investments, non-monetary asset exchanges, debt restructuring, etc. shall be calculated on the basis of the fair value of such assets and the related taxes paid.
(2) Scope of Amortization of Intangible Assets
When calculating taxable income, the amortization expenses of intangible assets calculated by the enterprise in accordance with the regulations are allowed to be deducted.
The following intangible assets are not allowed to calculate the deduction of amortization expenses:
1. Intangible assets whose self-development expenditures have been deducted in the calculation of taxable income.
2. Self-created goodwill.
3. Intangible assets not related to business activities.
4. Other intangible assets that are not subject to amortization expense deduction.
(C) Amortization method and life of intangible assets
Amortization of intangible assets is calculated using the straight-line method. The amortization period of intangible assets shall not be less than 10 years. Intangible assets as investments or transfers, the relevant legal provisions or contractually agreed upon the useful life, can be amortized in accordance with the provisions or agreed upon the useful life of the amortization. Expenditures on purchased goodwill are allowed to be deducted when the enterprise as a whole is transferred or liquidated.
Fourth, the tax treatment of long-term amortized expenses
Long-term amortized expenses are expenses incurred by an enterprise that should be amortized over more than one year or several years. When calculating taxable income, the following expenses incurred by an enterprise as long-term amortized expenses are allowed to be deducted if they are amortized in accordance with the regulations.
1. Expenditures for the alteration of fixed assets that have been fully depreciated.
2. Expenditures on alteration of leased fixed assets.
3. Expenditures on overhaul of fixed assets.
4 Other expenditures that should be treated as long-term amortized expenses.
Expenditures for the repair of fixed assets of an enterprise are directly deductible in the period in which they are incurred. Expenditure on improvement of fixed assets of an enterprise may increase the value of fixed assets if the fixed assets concerned have not yet been fully depreciated; if the fixed assets concerned have already been fully depreciated, they may be treated as long-term amortized expenses and amortized equally over a specified period.
Expenditures for the alteration of fixed assets refer to the expenditures incurred for changing the structure of a house or a building, extending its useful life, and so on. Fully depreciated fixed assets of the alteration expenditures, according to the estimated useful life of fixed assets amortized over time; leased fixed assets of the alteration expenditures, according to the contractual agreement of the remaining lease term amortized over time; alteration of fixed assets to extend the life of the fixed assets, in addition to fully depreciated fixed assets, fixed assets leased fixed assets alteration expenditures, other fixed assets alteration expenditures, shall be appropriate to extend the depreciable life. Depreciable life.
Expenditures for major repairs shall be amortized over the remaining useful life of the fixed assets.
Expenditures for major repairs of fixed assets referred to in the Enterprise Income Tax Law refer to expenditures that simultaneously meet the following conditions:
(1) Repair expenditures amounting to more than 50% of the taxable base at the time of acquisition of the fixed assets.
(2) The useful life of the fixed asset is extended for more than 2 years after the repair.
Other expenditures that should be treated as long-term amortized expenses are amortized over a period of not less than 3 years, starting from the month following the month in which the expenditures are incurred.
V. Tax Treatment of Inventories
Inventories are products or commodities held for sale, products in the production process, materials and supplies consumed in the production or provision of services.
(I) Taxable Basis of Inventories
Inventories are costed in accordance with the following methods:
1. Inventories acquired by cash payment are costed at the purchase price and related taxes paid.
2. Inventories acquired by means other than cash payment are costed at the fair value of the inventory and the related taxes paid.
3. Agricultural products harvested from a productive biological asset are costed at the cost of materials, labor, and shared overhead and other necessary expenditures incurred in the process of output or harvesting.
(ii) Costing Methods of Inventories
The costing method of inventories used or sold by an enterprise may be selected from among the first-in-first-out method, the weighted-average method, and the individual valuation method. Once the valuation method is selected, it shall not be changed at will.
When an enterprise transfers the above assets, the net value of the assets is allowed to be deducted when calculating the enterprise's taxable income. Among other things, the net value of an asset is the balance of the taxable base of the asset or property in question less the depreciation, depletion, amortization, and reserves that have been deducted in accordance with the regulations.
Except as otherwise provided by the competent departments of finance and taxation under the State Council, enterprises shall recognize the gain or loss on the transfer of the relevant assets in the process of reorganization when the transaction occurs, and the relevant assets shall be re-determined to have a taxable basis in accordance with the transaction price.
VI. Tax Treatment of Investment Assets
Investment assets, refers to the assets formed as a result of the enterprise's foreign equity investment and debt investment.
(A) the cost of investment assets
Investment assets are determined by the following methods to determine the cost of investment:
1. Investment assets acquired by paying cash, the purchase price as the cost.
2. Investment assets acquired by means other than cash payment are costed at the fair value of the asset and the related taxes paid.
(2) Deduction Methods for the Cost of Investment Assets
During the period of an enterprise's foreign investment, the cost of the investment assets shall not be deducted in the calculation of taxable income, and the cost of investment assets shall be allowed to be deducted when the enterprise transfers or disposes of the investment assets.
Seven, the tax law and accounting provisions of the differences in the treatment
The tax law and accounting provisions of the differences in the treatment of accounting provisions, refers to the enterprise in the financial accounting and accounting provisions of the tax law is inconsistent with the tax law, should be adjusted in accordance with the provisions of the tax law. That is, enterprises in the usual accounting, accounting system can be in accordance with the relevant provisions of the accounting system for the processing of accounts, but in the declaration of tax, the tax law and accounting system provisions of the difference between the tax adjustments to be made in accordance with the provisions of the tax law.
1. If an enterprise fails to provide complete and accurate vouchers of income and costs and expenses, and fails to calculate its taxable income correctly, the tax authorities shall approve its taxable income.
2. When an enterprise is liquidated in accordance with the law, it shall pay enterprise income tax in accordance with the regulations with its liquidation income after the liquidation ends. The so-called liquidation income refers to the portion of paid-in capital that exceeds the balance of all assets or properties of the enterprise at the time of liquidation after deducting the liquidation expenses, losses, liabilities, undistributed profits of the enterprise, public welfare and provident fund.
3. The taxable income of an enterprise is calculated in accordance with the tax laws and regulations, and it is often inconsistent with the total profit calculated on the basis of the financial accounting system. Therefore, the tax law provides: the enterprise in accordance with the relevant financial accounting provisions of the calculation of the total profit, in accordance with the provisions of the tax law to make the necessary adjustments, in order to be calculated as taxable income to pay income tax.