Borrow: non-operating expenses Credit: bank deposits
Public welfare donations refer to public welfare and relief donations (hereinafter referred to as public welfare donations), refers to the taxpayers through the Chinese territory of the nonprofit social organizations, state organs, to the public welfare undertakings such as education, civil affairs and other natural disasters, poverty-stricken areas, donations. .
What are the conditions for deduction?
First of all, it is necessary to obtain legal vouchers, including formal donation receipts issued by the Civil Affairs Bureau, the Red Cross and other legal charitable organizations.
Secondly, according to the new Enterprise Income Tax Law, the deduction ratio for public welfare donations is 12% of the total annual profit.
In addition, it is believed that in the near future will be issued for the donation to the Sichuan disaster area of some of the provisions of the deduction, it is possible to be able to deduct the full amount, so do not have to worry.
Tax law:
The Provisional Regulations on Enterprise Income Tax, Article 6, paragraph 2, provides that taxpayers for public welfare, relief donations in the annual taxable income of 3% or less of the portion of the taxable income, are allowed to pre-tax deductions. Article 12 of the Implementing Rules of the Provisional Regulations on Enterprise Income Tax explains that public welfare and relief donations refer to donations made by taxpayers to public welfare undertakings such as education, civil affairs and other disaster-stricken and impoverished areas through non-profit social organizations and state organs in China.
And specifically pointed out: taxpayers directly to the recipient of the donation shall not be deducted before tax. The second paragraph of this article explains the "social organizations" that the civil affairs department approved the establishment of non-profit public welfare organizations, such as the Youth Development Foundation, Project Hope Foundation, Song Qingling Foundation. In addition, there are some by the State Administration of Taxation issued a separate document, such as the China Literature and Arts Foundation, China Youth Volunteers Association, Friends of China Research Foundation and other social organizations.
How the money to the charitable associations should be recorded for the accounting school to organize, we learn when, can not rely too much on their own experience, only a continuous in-depth understanding of the existence of the principles behind this knowledge, in order to go further.