the items that are allowed to be deducted include the following items:

1. Business entertainment expenses 2. Advertising expenses 3. Business publicity expenses 4. debt interest income

VII. Basis and method for extracting depreciation of fixed assets

The basis for drawing depreciation of fixed assets is the original value of fixed assets.

(1) Fixed assets of taxpayers shall be depreciated from the month following the month in which they are put into use; Depreciation of fixed assets that have ceased to be used shall be stopped from the month following the month of cessation of use.

(2) The straight-line depreciation method is adopted in principle for calculating the depreciation of fixed assets that can be deducted by taxpayers. Before calculating depreciation, the residual value shall be estimated and deducted from the original price of fixed assets; The proportion of residual value is less than 5% of the original price, which is determined by the enterprise itself; Due to special circumstances, if it is necessary to adjust the proportion of residual value, it shall be reported to the competent tax authorities for the record.

(3) The fixed assets depreciation period shall be implemented according to the provisions of the financial system for different industries formulated by the Ministry of Finance.

VIII. Deduction criteria for business entertainment expenses

Business entertainment expenses incurred by taxpayers directly related to their business operations can be deducted according to the facts within the following prescribed proportions.

if the annual net sales (business) income is 15 million yuan or less, it shall not exceed five thousandths of the net sales income; If the annual net sales (business) income exceeds 15 million yuan, it shall not exceed 3/1 of this part.

for the business entertainment expenses deducted by taxpayers, the competent tax authorities shall provide sufficient valid vouchers or materials to prove the authenticity if they require proof materials. Can not provide, shall not be deducted before tax.

IX. Deduction criteria for advertising expenses

(1) If the advertising expenses incurred by taxpayers in each tax year do not exceed 2% of sales (business) income, they can be deducted according to the facts, and the excess can be carried forward to future years indefinitely.

(2) Since January 1, 21, the advertising expenses incurred in pharmaceutical, food (including health care products and beverages), daily chemical, household appliances, communications, software development, integrated circuits, real estate development, sports culture and furniture and building materials malls in each tax year do not exceed 8% of the sales (business) income, which can be deducted according to the facts, and the excess can be carried forward to future years indefinitely.

(3) High-tech enterprises engaged in software development, integrated circuit manufacturing and other businesses, Internet sites, and venture capital enterprises engaged in high-tech venture capital can deduct their advertising expenses according to the facts within five tax years from the date of registration and establishment.

(4) The advertising fee for grain liquor shall not be deducted before tax.

if taxpayers really need to increase the deduction ratio of advertising fees due to special reasons such as industry characteristics, they must report to State Taxation Administration of The People's Republic of China for approval.

X. Deduction criteria for business promotion expenses

Business promotion expenses incurred by taxpayers in each tax year (including advertising expenses that fail to pass through the media) can be deducted according to the facts within the range of not more than five thousandths of sales (business) income.

Xi. Deduction standard of employee pension fund, unemployment insurance fund, basic medical insurance premium, employment security fund for the disabled and statutory personal safety insurance premium for special types of workers

(1) Employee pension fund refers to the retirement pension fund paid by taxpayers for employees of this enterprise according to a certain proportion stipulated by the relevant state departments, and the part paid according to 2% of the standard salary of the enterprise can be deducted before tax;

(2) Unemployment insurance fund refers to the funds specially handed over by taxpayers to the labor department to meet the needs of temporary relief for dismissed employees. At present, the part paid according to 1% of the enterprise's standard salary can be deducted before tax;

(3) the basic medical insurance premium refers to the funds that taxpayers hand over to the relevant departments in accordance with the regulations for participating in medical insurance for employees of the enterprise. At present, 9% of the standard salary of the enterprise can be deducted before tax;

(4) Employment security fund for the disabled refers to the security fund for the disabled that the enterprise fails to arrange employment for the disabled according to the regulations and is handed in according to the regulations of the local government, which can be deducted when calculating the taxable income;

(5) The statutory personal safety insurance premiums paid by taxpayers for special types of workers are also allowed to be deducted according to the actual conditions. Mainly refers to the legal personal safety insurance premium paid for employees engaged in special work such as high altitude, underground and seabed. Generally, the amount paid is stipulated by the labor and insurance departments.

Life insurance or property insurance insured by taxpayers with commercial insurance institutions for their investors or employees, as well as supplementary insurance insured for employees other than the basic insurance, shall not be deducted.

XII. Standards for deducting technology development expenses

All expenses incurred by enterprises in researching and developing new products, new technologies and new processes can be deducted according to the facts. For enterprises whose annual development expenses increase by more than 1% (inclusive), the actual expenses incurred in the current year can be deducted according to the regulations, and the taxable income of the current year can be deducted by 5% of the actual amount after the examination and approval of the State Taxation Bureau of the provincial municipality.

XIII. Deduction standard of bad debt reserve and bad debt reserve

(1) provision for doubtful debts: refers to the bad debt loss where taxpayers withdraw reserves according to a certain proportion of the balance of accounts receivable at the end of the year to write off their accounts receivable.

bad debt loss incurred by taxpayers shall be deducted according to the actual amount in principle. With the approval of the tax authorities, the bad debt reserve can also be withdrawn. Bad debt loss occurred in the enterprise that withdrew the bad debt reserve, and the bad debt reserve should be reduced; The actual bad debt loss, which exceeds the withdrawn bad debt provision, can be directly deducted in the current period; When the written-off bad debts are recovered, the taxable income of the current period should be increased accordingly.

unless otherwise stipulated, taxpayers who are approved to withdraw bad debt reserve shall not exceed 5 ‰ of the balance of accounts receivable at the end of the year. Year-end accounts receivable with provision for bad debts are the money that taxpayers should collect from customers who purchase goods or accept labor services for reasons such as selling goods, products or providing labor services, including freight and miscellaneous fees paid in advance. Accounts receivable at the end of the year include the amount of notes receivable.

the creditor's rights receivable and any current accounts between related parties that are not involved in the purchase and sale activities of taxpayers shall not be allowed to draw bad debt reserves. Current accounts between related parties shall not be recognized as bad debts.

(2) The provision for bad debts is limited to financial and insurance enterprises. Taxpayers can withdraw a certain proportion of the loan balance at the end of the year to write off the bad debt losses of their accounts receivable.

The provision for bad debts drawn by taxpayers according to regulations is allowed to be deducted when calculating taxable income. Specific criteria for drawing bad debt reserve, the general enterprise bad debt reserve is drawn by 1% of the loan balance at the end of the year; The reserve for bad debts of rural credit cooperatives shall be drawn at 1.5% of the loan balance at the end of the year.

XIV. Deduction of all kinds of funds inside and outside the price

All kinds of funds inside and outside the price (funds, surcharges and fees) collected and paid by enterprises are approved by the State Council or the Ministry of Finance, and are included in the financial accounts of the budgetary or extra-budgetary funds at the same level according to regulations. If two lines of revenue and expenditure are managed, enterprise income tax is not levied, and enterprises are allowed to deduct before tax when calculating and paying enterprise income tax.

XV. Deduction of debt interest's income

National bonds refer to debts borrowed by the state from individuals, organizations or foreign countries in accordance with the prescribed methods and procedures to raise government funds, including: treasury bonds, special national bonds and value-added bonds issued by the Ministry of Finance to balance the fiscal budget. It does not include national key construction bonds issued by the State Planning Commission and financial bonds approved by the People's Bank of China.

in order to encourage taxpayers to actively purchase treasury bonds and support national construction, the tax law stipulates that the interest income earned by taxpayers from purchasing treasury bonds is not included in the taxable income, and no income tax is levied.