What does the deductible include?

Including costs, expenses, taxes, losses and other expenses. Cost refers to the cost of production and operation; Expenses refer to three-phase expenses, namely financial expenses, management expenses and sales expenses; Taxes refer to six domestic taxes paid, including consumption tax, business tax, resource tax, land value-added tax, customs duty and urban construction tax, and education surcharge; Losses refer to non-operating expenses, operating losses, investment losses and other losses.

Deduction amount refers to the items that are allowed to be deducted from the total income when calculating taxable income. If there are accrued items in the tax year, they shall not be transferred to the next year for supplementary deduction; Where the accounting treatment is inconsistent with the tax law, the tax law shall prevail.

Extended data:

Principles to be followed in granting deduction items

1, accrual basis. Any expenses that should be compensated by the current income in this period, regardless of whether the monetary funds have actually been paid in this period, should be treated as current expenses; All income attributable to the current period, regardless of whether monetary funds have actually been received, should be treated as current income.

2. proportionality. The expenses incurred by taxpayers shall be declared and deducted in the current period when the expenses should be matched or distributed, and the expenses that taxpayers should declare and deduct within a tax year shall not be declared and deducted in advance or later.

3. Relevance. The deductible expenses of taxpayers must be related to the nature and source of taxable income.

4. certainty. Whenever the taxpayer can deduct the expenses, the amount must be determined.

5. rationality. The calculation and distribution methods of deductible expenses of taxpayers shall conform to general business practices and accounting practices.

Baidu Encyclopedia-Allow deductions