Article 5 of the "Interim Regulations of the People's Republic of China on Enterprise Income Tax" (hereinafter referred to as the "Regulations") stipulates that the total income of taxpayers includes: (1) production and operating income; (2) Property transfer income; (3) Interest income; (4) Lease income; (5) Royalty income; (6) Dividend income; (7) Other income.

Production and operating income refers to the income obtained by taxpayers from engaging in main business activities. Including commodity (product) sales income, labor service income, operating income, project price settlement income, work-related operation income and other business income.

Property transfer income refers to the income obtained by taxpayers from the paid transfer of various types of property, including income obtained from the transfer of fixed assets, securities, equity and other properties.

Interest income refers to the interest earned by taxpayers on purchases of various bonds and other securities, interest paid on arrears from external entities, and other interest income.

Leasing income refers to the rental income obtained by taxpayers from leasing fixed assets, packaging materials and other properties.

Royalty income refers to the income obtained by taxpayers from providing or transferring the right to use patent rights, non-patented technologies, trademark rights, copyrights and other franchise rights.

Dividend income refers to the dividends and bonus income received by taxpayers from foreign investment in shares.

Other income refers to all income except the above-mentioned income, including surplus income from fixed assets, fine income, accounts payable that cannot be paid due to creditors, surplus income from materials and cash , additional refunds for education fees, income from packaging deposits and other income.

According to regulations, any taxpayer's use of the company's commodities and products in capital construction, special projects, employee welfare, etc. should be treated as income; the materials saved by the taxpayer's processing and assembly of supplied materials from outside are , if it is retained by the enterprise according to the contract, it should also be treated as income; the interest income from the taxpayer's purchase of treasury bonds shall not be included in the taxable income. However, if the treasury bonds purchased are sold on the market, the increase in value from the sale proceeds minus the principal shall be included in the taxable income of the year and corporate income tax shall be paid.

2. Confirmation of taxable income

(1) Taxable income is used for projects under construction, management departments, non-productive institutions, donations, fund-raising, Advertising, samples, employee benefits and rewards, etc. should be treated as external sales. The sales price of its products should refer to the market sales price of similar products in the same period: if there is no reference price, the taxable price should be composed of the cost of wood plus a reasonable profit.

(2) Taxpayers donate their own products to the society; calculated according to the price specified in Cai Shui Zi [1996] No. 79, the price shall not exceed the "Provisional Regulations of the People's Republic of China on Enterprise Income Tax" The proportion of donations stipulated in the Implementing Rules (hereinafter referred to as the "Rules") can be deducted when calculating income tax; the portion exceeding the scope and proportion stipulated in the "Rules" and relevant documents must be adjusted to the taxable income and taxed to the enterprise Income Tax.

Enterprises advertise their own products through advertising companies in the form of products, prototypes, etc., and the enterprises provide supporting documents, which can be deducted when calculating income tax; if they do not go through advertising companies, they must According to the price calculation specified in Cai Shui Zi [1996] No. 79, the taxable income will be fully adjusted and corporate income tax will be calculated.

(3) Processing of one-time collection or payment of rental fees. ‘If the taxpayer exceeds the lease period of more than one year and collects the accumulated lease fee in one lump sum, the lessor shall calculate and collect the lease fee in installments according to the lease period stipulated in the contract, and the lessee shall amortize the lease fee in corresponding installments.