Legal subjectivity:

In our country, companies pay corporate income tax according to time every year. Of course, before making the payment, it is necessary to clearly understand the standards for deduction items. This is also for the future The company's liquidation and audit work has the effect of getting twice the result with half the effort. 1. What are the deduction standards for corporate income tax? 1. Wage and salary expenditures Reasonable wages and salary expenditures incurred by the enterprise are allowed to be deducted. 2. Employee welfare fees that do not exceed 14% of total wages and salaries are allowed to be deducted. 3. Union funds that do not exceed 2% of total wages and salaries are allowed to be deducted. 4. Employee education funds (1) General enterprises: The portion not exceeding 2.5% of total wages and salaries is allowed to be deducted; the excess is allowed to be carried forward for deduction in subsequent tax years. (2) High-tech enterprises: The portion that does not exceed 8% of total wages and salaries is allowed to be deducted; the excess portion is allowed to be carried forward for deduction in subsequent tax years. (3) Technologically advanced service enterprises: The portion not exceeding 8% of total wages and salaries is allowed to be deducted; the excess is allowed to be carried forward for deduction in subsequent tax years. 5. Employee training expenses for integrated circuit design companies and qualified software companies (animation companies): calculated separately and deducted accordingly. 6. The "five insurances and one fund" shall be paid in accordance with the scope and standards stipulated by the government, and deductions are allowed. 7. The supplementary pension insurance premium shall be deducted if it does not exceed 5% of the total wages and salaries. 8. The part of supplementary medical insurance premiums not exceeding 5% of total wages and salaries is allowed to be deducted. 9. Business entertainment expenses shall be deducted according to 60% of the amount incurred, but the maximum shall not exceed 5‰ of the sales (business) income of the year. 10. Advertising expenses and business promotion expenses (1) General enterprises (tobacco enterprises are not allowed to deduct): the portion not exceeding 15% of the sales (business) income of the current year is allowed to be deducted; the excess is allowed to be carried forward for deduction in subsequent tax years. (2) Cosmetic manufacturing or sales, pharmaceutical manufacturing, and beverage manufacturing (excluding alcoholic beverage manufacturing) enterprises: the portion not exceeding 30% of the sales (business) income of the current year is allowed to be deducted; the excess portion is allowed to be carried forward for deduction in subsequent tax years. 11. The portion of public welfare donation expenditures that does not exceed 12% of the total annual profits is allowed to be deducted; the excess portion is allowed to be carried forward and deducted when calculating taxable income within the next three years. 12. Handling fees and commissions (1) General enterprises: shall not exceed the amount of income recognized in service agreements or contracts signed with intermediary service institutions or individuals with legal business qualifications (excluding both parties to the transaction and their employees, agents and representatives, etc.) A deduction of 5% is allowed. (2) Property insurance companies: A deduction of no more than 15% of the total premium income for the year after deducting surrender charges, etc. is allowed. (3) Personal insurance companies: A deduction of no more than 10% of the total premium income for the year after deducting surrender charges, etc. is allowed. (4) In the process of developing customers and expanding business, the handling fees and commission expenses incurred by telecommunications companies for entrusting the sale of telephone network cards and telephone recharge cards shall not exceed 5% of the total revenue of the year and are allowed to be deducted. (5) For enterprises that engage in agency services and whose main business income is fees and commissions (such as securities, futures, insurance agencies, etc.), the operating costs (including fees and commission expenses) actually incurred to obtain such income , allowed to be deducted before corporate income tax. (6) If a real estate development and operation enterprise entrusts an overseas institution to sell developed products, the sales fees (including commissions or handling fees) paid to the overseas institution shall not exceed 10% of the entrusted sales revenue, and shall be deducted. 13. Party organization work funds (1) Non-public enterprises: Party organization work funds are included in enterprise management expenses, and the part that does not exceed 1% of the total annual wages and salaries of employees can be deducted before corporate income tax according to the actual situation. (2) State-owned enterprises (including state-owned enterprises, wholly-owned enterprises and enterprises with absolute and relative control of state-owned capital) and collectively-owned enterprises: the party organization work funds included in administrative expenses, the actual expenditure shall not exceed 1% of the total annual wages and salaries of employees, It can be deducted before corporate income tax according to the actual situation. If there is any balance at the end of the year, it will be carried forward for use in the next year. If the cumulative carryover exceeds 2% of the total employee wages of the previous year, it will no longer be allocated from administrative expenses in the current year. 2. Expenditures that are not allowed to be deducted before corporate income tax 1. Dividends, dividends and other equity investment income payments paid to investors. 2. Corporate income tax. 3. Fines, penalties and loss of confiscated property. (However, liquidated damages paid by an enterprise due to economic breach of contract can be deducted before tax. For example, bank penalty interest paid can be deducted before tax.) 4. Tax late payment fees, plus interest. 5. Non-public welfare donation expenses. 6. Non-advertising sponsorship expenditures. 7. Management fees paid between enterprises. 8. Rent and royalties paid between business offices of enterprises. 9. Interest paid between business institutions within non-bank enterprises. 10. Commercial insurance premiums paid by enterprises for investors or employees. (Except for personal safety insurance premiums paid by enterprises for employees in special types of work in accordance with relevant national regulations and other commercial insurance premiums that can be deducted according to the provisions of the financial and taxation authorities of the State Council, commercial insurance premiums paid by enterprises for investors or employees shall not be deducted.) 11. Expenditures from reserves that have not been approved by the financial and taxation authorities of the State Council. For example, asset impairment provisions and inventory depreciation provisions are not deductible before tax. 12. Expenses and assets generated from income are not taxable. 13. Other expenses not related to obtaining income.

3. Vouchers for pre-tax deduction of corporate income tax According to Article 8 of the "Announcement of the State Administration of Taxation on Issuing the "Administrative Measures for Pre-tax Deduction Vouchers for Corporate Income Tax"" (State Administration of Taxation Announcement No. 28, 2018), the voucher for pre-tax deduction shall be in accordance with Sources are divided into internal credentials and external credentials. Internal vouchers refer to the original accounting vouchers made by the enterprise for accounting of costs, expenses, losses and other expenditures. The filling and use of internal vouchers should comply with national accounting laws, regulations and other relevant provisions. External vouchers refer to the vouchers obtained from other units and individuals to prove the occurrence of expenditures when an enterprise conducts business activities and other matters, including but not limited to invoices (including paper invoices and electronic invoices), financial bills, tax payment vouchers, Receipt vouchers, split orders, etc.