"Increase or decrease" means that the recognition standards of income, cost and expense in the accounting books are inconsistent with the provisions of the tax law, and the existing income, cost and expense data should be adjusted and reduced according to the standards stipulated in the tax law in order to correctly calculate the taxable income.

Government subsidy income does not need to pay income tax. If the income has been included in the accounting book income, it can be reduced; If it is not included in the book income, there is no need to reduce it.

Matters needing attention in tax adjustment:

1. The smaller of 60% of the actual amount and 0.5% of the sales amount can be deducted before tax, and the difference between the actual amount and the deductible amount should be taxed.

2. For the adjustment of advertising fees, the part within 65,438+05% of sales can be deducted, and the excess part can be deducted in the following year to increase the tax payment in that year.

3, administrative fines, tax late fees and other items shall not be deducted before income tax, tax increase.

4. Foreign public welfare donations account for 65,438+02% of accounting profits. Those who meet the requirements can be deducted before income tax. Those who do not meet the relevant conditions cannot be deducted before income tax, and tax should be increased.

Refer to the above? Baidu encyclopedia-income tax