What are the expenses that are not allowed to be fully deducted when calculating income tax?

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Latest enterprise income tax expense deduction list

Expense category Deduction standard/limit ratio Explanatory matters (the calculation base of the limit ratio, other explanatory matters)

Employee wages According to the fact that the term of office or employment, reasonable

Add 100% deduction Payment of wages to the disabled

Employee welfare expenses 14% Gross wages and salaries

Employee education expenses 2.50% Gross wages and salaries

8% Recognized technologically advanced service enterprises

Full deduction Employee training expenses for software production enterprises

Employee labor union expenses 2% Gross wages and salaries

Business hospitality expenses MIN (60%, 5‰) 60% of the amount incurred, 5‰ of sales or operating income; dividends, bonuses and income from equity transfer distributed back to the enterprise in equity investment business can be used as the basis for calculating income

Advertising and business promotion expenses 15% of the current year's sales (operating) income, with the excess carried forward to a later date

30% of the current year's sales (operating) income; cosmetic manufacturing, pharmaceutical manufacturing, and beverage manufacturing (excluding Alcohol Manufacturing) enterprises

No deduction Tobacco advertising costs of tobacco companies

Donation expenses 12% Total annual profit (accounting profit); public welfare donations; donation bills, the list of the year to which it belongs can be deducted, accounting profit ≤ 0 can not be counted as a limit

Interest expenses (borrowing from enterprises) according to the fact that the (non-affiliated enterprises borrowing from the financial enterprise) non-financial to financial Borrowing

Deductible within the same period of time (non-affiliated borrowing) non-financial to non-financial, not exceeding the same amount of the same period of time, and provide a "financial enterprises in the same period of the same type of lending interest rate information"

Deductible within the equity investment of 5 times or 2 times (affiliates borrowing) financial enterprises, debtor Within 5 times of equity investment and within 2 times of other industries

Deductible according to the facts (interest paid by related enterprises to domestic related parties) Provide information to prove that the transaction is in line with the principle of independent trading or the actual tax burden of the enterprise is not higher than that of the domestic related parties

Interest expenses (borrowing from a natural person) Deductible within the same period of time and within the same category (no affiliation) Deductible within the same period of time and signing of a borrowing contract

Deductible within 5 times or 2 times of equity investment (natural person with a related relationship)

Deductible according to the facts (natural person with a related relationship) Able to prove that the related transaction is in line with the principle of independent transaction

Interest expense (failure to pay the full amount of the capital due within the prescribed period) Partially not deductible Interest on borrowings not deductible = Amount of interest on borrowings for the period × Amount of unpaid registered capital for the period ÷ Amount of borrowings for the period Interest on borrowed funds = Interest on borrowed funds for the period × unpaid registered capital for the period ÷ amount of borrowed funds for the period

Inter-branch interest paid by a non-banking enterprise is not deductible

Housing fund is not deductible within the scope of the regulations

Fines, penalties, and losses of confiscated property are not deductible

Late payment of taxes is not deductible

Sponsorship expenses are not deductible

Contributions to various kinds of basic social security are not deductible within the scope of the regulations

Supplementary pension insurance 5% of gross salary

Supplementary medical insurance 5% of gross salary

Expenditures not related to the acquisition of income are not deductible

Non-taxable income used for the expenditure of expenses are not deductible

Environmental protection funds are actually withdrawn in accordance with the regulations, and are not deductible for any change in their use

Property insurance is actually

Security insurance for special workers is actually not deductible. Personal safety insurance for special types of workers is deductible

Other commercial insurance is not deductible, except for the provisions of the State Council's competent financial and tax authorities can be deducted

Lease premiums for leased fixed assets are evenly deducted according to the term of the lease Lease premiums for operating leases are deducted in installments

Deductions for financial leases are depreciated for the portion of the value of the fixed assets that constitutes a financial lease

Labor Protection Labor protection expenses Reasonable according to the facts

Management fees paid between enterprises (e.g., management fees paid to the head office) are not deductible

Rent paid between business establishments within an enterprise is not deductible

Royalties paid between business establishments within an enterprise are not deductible

Equity investment income such as dividends and bonuses paid to investors is not deductible

Non-approved reserves are not deductible

No deduction for unapproved reserves

Not deducted for unappropriated earnings. Approved reserves Not deductible

Depreciation of fixed assets Deductible within prescribed limits Not exceeding the minimum depreciation period

Depreciation of productive biological assets Deductible within prescribed limits 10 years for forests and trees and 3 years for livestock

Amortization of intangible assets Amortization of intangible assets Amortization of intangible assets over a period of not less than 10 years General intangible assets

Amortization over a period of years as agreed by law or contract Invested in or transferred to an intangible asset

Not deductible Self-created goodwill

Not deductible Intangible assets not related to operating activities

Long-term amortized expenses Deductible within limits 1. Expenditures for the alteration of buildings and buildings which have been fully depreciated are apportioned over their estimated remaining useful lives

2. Expenditures for the alteration of leased buildings and buildings are apportioned over the remaining term of the lease as agreed in the contract

3, Expenditures for major repairs of fixed assets are apportioned over the remaining useful life of the fixed assets

4. Other long-term amortized expenses are amortized over a period of not less than 3 years

Start-up costs are deductible as a lump sum in the year of commencement of business or amortized as a long-term amortized expense

Amortization of low-value consumables

accountable

audit and notary public fees accountable

Research and development expenses are deductible as an additional deduction. >Research and development expenses Additional deduction R&D expenses incurred for R&D activities engaged in projects specified by the state shall be applied to the tax bureau for additional deduction when the annual accounts are finalized

Taxes can be deducted Income tax and value-added tax (subject to conditions) are not deductible

Input tax on VAT is not allowed as a pre-tax deduction Input tax on VAT that has already been deducted for purchased goods, which is not deducted as it does not participate in the cost

Input VAT is not allowed to be deducted before taxation input tax is not involved in the calculation of cost and profit and loss

Depreciation of fixed assets is deducted before income tax The input tax on the undeducted VAT on the purchase of fixed assets should be included in the cost of fixed assets and deducted with the depreciation of fixed assets before income tax

Deductible Input tax on the export of goods that is not exempted or deductible in the export of goods business according to the provisions of the tax law should be transferred to the cost of goods sold

Input tax is not allowed to be deducted

Cost of sales of goods The input tax should be transferred to the cost of goods sold

Conditional Deduction The loss of goods (e.g., inventory loss, destruction, theft, etc.) cannot be used for production, and naturally, it cannot be sold to the outside world or regarded as a sale. According to the tax law, the corresponding VAT input tax cannot be used for deduction and should be transferred as input tax. In addition, the loss of goods need to be declared to the tax authorities and approved by the tax authorities as a pre-tax expense, the transfer of input tax can also be deducted with the loss of property before income tax

VAT output tax is not allowed to be deducted before tax Normal sales of goods, the VAT output tax charged to the purchaser, which is not involved in the calculation of the cost and profit and loss, is not allowed to be deducted before income tax

VAT output tax is not allowed to be deducted before income tax

The VAT is not allowed to be deducted before income tax, but is not allowed to be deducted before tax. Conditional deduction of VAT sales tax that is borne by the company itself. For example, the output tax of donated goods is deducted with the donation cost before income tax if the overall donation cost does not exceed the donation limit

Consultation and litigation fees Actual

Travel expenses Actual

Meeting fees Actual Minutes and other materials proving the truthfulness

Working apparel expenses Actual

Transportation, loading and unloading, packaging expenses and other expenses Actual

Transportation, loading and unloading, packaging expenses and other expenses Actual

These expenses are not allowed to be deducted by the company. Expenses Actual

Printing expenses Actual

Consulting expenses Actual

Lawsuit expenses Actual

Postage and telecommunication expenses Actual

Lease charges Actual

Utilities Actual

Heating expenses/Heat-heating costs are included in the calculation of the welfare expense limit, which is the category of employee welfare expenses, and needs to be adjusted to increase the amount of welfare expenses

Official miscellaneous expenses Actual

Working clothes expenses Actual

Transportation, handling, and packing expenses

Vehicle and boat fuel costs

Transportation subsidies and employee transportation costs were included in wages before 2008, and after 2008, they were included in the welfare calculation of the limit Before 2008, they were included in the total wages and pay taxes; after 2008, they were charged as employee welfare costs

Electronic equipment transfer costs

Repair costs

Safety and defense costs

Security and safety costs are included in the welfare calculation of the limit. Defense fees As permitted

Board of directors' fees As permitted

Greening fees As permitted

Fees and commissions expenses 5% (for general enterprises) A limit of 5% of the amount of revenues recognized in the service agreement or contract, which must be paid by transfer of funds by the enterprise, or else it is non-deductible

Telecommunications enterprises' fees and commissions expenditures are limited to the amount of fees and commissions incurred by the telecommunication enterprises due to the following factors in the processes of developing customers and expanding their businesses Fees and commissions for telecommunication enterprises are limited to those incurred by telecommunication enterprises in the course of customer development, business expansion, etc., for the sale of telephone access cards and rechargeable cards

15% (property insurance enterprises) 15% of the total premium income of the year after deducting the surrender premiums, etc.

10% (life insurance enterprises) 10% of the total premium income of the year after deducting the surrender premiums, etc.

Not deductible Fees and commissions paid to securities underwriters for the issuance of equity securities

Investor Protection Fund 0.5% to 5% 0.5% to 5% of operating income

Loan Loss Provision (Financial Enterprises) 1% 1% of the balance of loan assets; allowed to engage in the loan business and withdrawn in accordance with the prescribed range

No deduction Assignments such as entrusted loans, etc., which are not subject to risk and loss, shall not be deducted from the provision for loan losses. Withdrawal of provisions for loan losses to be deducted before tax

Deductions on a pro rata basis - - Concerned loans 2% Agricultural loans and loans to small and medium-sized enterprises (with annual sales and total assets of not more than 200 million yuan)

- -25% for subprime loans

-50% for doubtful loans

- - - Loss category loans 100%

Agricultural catastrophe risk reserve (insurance company) 25% 25% of the premium income of the current year, applicable to the operation of plantation insurance subsidized by the central government and local government premiums

Guarantee indemnification provision (SME credit guarantee agency) 1% Balance of guarantee liability at the end of the current year

Unexpired Liability provision (SME credit guarantee agency) 50% Guarantee fee income for the current year

Exchange membership fee for the year Actual Notes

Amortization of trading seat fee Amortization by 10 years

Interbank membership fee Actual Notes

Information disclosure fee Actual

Announcement fee Actual

Vesting fee expense Revenue expense Current expense before tax Deductions

Capital expenditures should be included in the cost of the relevant assets, and depreciation or amortization expenses in accordance with the provisions of the Enterprise Income Tax Law deducted before tax

Others Depends on the situation

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