There are two ways to make an entry for the tax exemption fee:
1, directly according to the amount of the amount after the exemption:
Borrow: Taxes and surcharges, etc.
Loan: Taxes and charges payable - stamp duty payable, etc.
When paying:
Borrow: Taxes and charges payable - stamp duty payable, etc.
Credit: bank deposits
2. Accrued in accordance with the amount before the reduction:
Borrow: Taxes and surcharges, etc.
Credit: Taxes and charges payable - stamp duty payable, etc.
When paying:
Borrow: Taxes and charges payable
Credit: Bank Deposit
Non-operating Income or Other Gains (Reduced Portion)
Note: Small Business Accounting Standards (SBAs) use the account "Non-Operating Income", while Enterprise Accounting Standards (EASs) use the account "Other Gains". Other Gains".
There is no difference in profit and loss or corporate income tax between these two treatments.
The Accounting Department of the Ministry of Finance also gave the same answer: "For the property tax and land use tax that is directly reduced or exempted after the accrual of the current period, the enterprise should write off the relevant expenses or directly recognize the current profit and loss; for the property tax and land use tax that is levied first and then returned to the enterprise, the enterprise should follow the government subsidies in the "Accounting Standard for Business Enterprises No. 16 - Government Subsidies".
Judge whether they are government grants based on the substance of the transaction and carry out the corresponding accounting treatment, which is directly recognized in the current period's profit and loss or eliminated the related expenses."
Tax incentives that fall under the category of government grants are: tax incentives in the form of levy-and-return (refund) and immediate refund.
Similarly, a common example of a government subsidy is the handling fee received by a company for withholding and paying personal income tax.
So, the six taxes and two fees that are directly reduced are not government grants accounting for the subject, then it is not necessary to be included in the non-operating income.