The actual public welfare donation expenditure incurred by the enterprise, within 12% of the total annual profit, is allowed to be deducted when calculating the taxable income, and the excess part will be subject to income tax.

The total annual profit refers to the annual accounting profit calculated by the enterprise in accordance with the provisions of the national unified accounting system.

Charitable relief donations must meet two conditions: object and channel.

1. Object conditions.

The so-called public welfare donations refer to donations made by enterprises through public welfare social groups or people's governments at or above the county level and other departments for the following public welfare undertakings: a. Disaster relief, poverty relief, assistance to disabled social groups and individuals, etc.

Activities; b. Education, science, culture, health, and sports; c. Environmental protection, construction of social public facilities; d. Other social public services and welfare undertakings that promote social development and progress.

2. Channel conditions.

People's governments at or above the county level and their departments or public welfare social groups.

The so-called public welfare social groups refer to social groups such as foundations and charitable organizations that meet the following conditions: a. They are established in accordance with the law and have corporate legal person status; b. The purpose is to develop public welfare undertakings and not for profit; c.

All assets and their appreciation are owned by public welfare legal persons; d. Income and operating savings are mainly used for business activities for the purpose of creation; e. Upon termination or dissolution, the remaining property cannot be attributed to any individual or profit-making organization; f. No public welfare operations are allowed.

Business with unrelated purposes; g. Have a sound financial accounting system; h. Have an organizational structure that is not for private gain; i. Donors are not allowed to participate in the distribution of public welfare social groups in any form, nor have ownership of the organization's property

.

For example, a company calculated a total profit of 3 million yuan in accordance with the government's unified accounting policy (note that it is not a tax profit), donated 300,000 yuan to the disaster-stricken area through government agencies that year, and directly distributed 100,000 yuan in condolence funds to the victims. Asked whether the public welfare donation should be

Adjust the amount?

The limit of charitable relief donations that can be deducted before income tax in the current year is: 300*12%=36 (ten thousand yuan). Donations of 300,000 yuan through government agencies can be fully deducted without paying income tax.

However, the consolation payment of RMB 100,000 paid directly to the victims of the disaster shall not be deducted before income tax.

Pay income tax.