Item 4, Paragraph 2, Article 6 of the Provisional Regulations on Enterprise Income Tax of the People's Republic of China stipulates: "Taxpayers' donations for public welfare and relief are allowed to be deducted from the annual taxable income within 3%." Once the donation amount exceeds 3% of taxable income, the enterprise has to pay taxes on the donation.

The specific procedure is

Measures for the Administration of Enterprise Income Tax Reduction and Exemption

According to the Provisional Regulations of the People's Republic of China on Enterprise Income Tax and its implementing rules and relevant regulations, in order to strengthen the management of enterprise income tax reduction and exemption (hereinafter referred to as tax reduction and exemption), promote taxpayers and tax authorities to better implement the enterprise income tax reduction and exemption policy, and give full play to the leverage of tax reduction and exemption to promote economic development and adjust the economy. These measures are specially formulated.

1. Scope of application for tax reduction or exemption

Any tax reduction or exemption that is granted in accordance with tax laws, regulations and relevant regulations of the State Council belongs to the scope of application for tax reduction or exemption. Those beyond this prescribed scope shall not be submitted for approval for tax reduction or exemption.

For tax reduction or exemption that meets the prescribed scope of application for approval, the taxpayer shall apply for tax reduction or exemption, which shall be implemented after being examined and approved by the tax authorities. Taxpayers are not allowed to reduce or exempt tax on their own.

Second, taxpayers applying for tax reduction or exemption must provide the following written materials to the competent tax authorities:

(1) An application report for tax reduction or exemption, including the basis, scope, duration, amount and basic information of the enterprise;

(2) financial and accounting statements of taxpayers;

(3) photocopies of business license and tax registration certificate;

(4) Other materials required by the tax authorities according to different tax reduction or exemption items.

The tax authorities should accept the taxpayer's application for tax reduction or exemption at any time, but the deadline for accepting tax reduction or exemption is within two months after the end of the year, and the overdue application for tax reduction or exemption will not be processed.

Third, the requirements for examination and approval of tax reduction or exemption

(1) It must be based on national tax laws, regulations and other relevant provisions;

(2) The policy is strong, the amount is large, involving a wide range of tax reduction and exemption, and the collective examination and approval system is adhered to;

(3) The examination and approval of tax reduction and exemption shall be handled impartially in accordance with the law, and no one shall act beyond his authority, let alone abuse power for personal gain;

(4) The procedures for taxpayers to apply for tax reduction or exemption are complete, and the required information is complete;

(5) After receiving the taxpayer's application and the report from the lower tax authorities, the tax authorities at a higher level should handle it in a timely manner. In case of non-compliance or incomplete procedures, the taxpayer or the lower tax authorities should be informed in a timely manner;

(6) In principle, a one-time examination and approval system shall be implemented for tax reduction or exemption for more than one year.

IV. Examination and approval authority for tax reduction or exemption

Examination and approval of tax reduction or exemption shall be conducted in accordance with the principle of centralized authority, and decentralization at different levels is not allowed. Specifically,

(1) The tax reduction or exemption for local enterprises shall be examined and approved or determined by the local tax bureaus of provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans;

(2) The tax reduction or exemption for central-level enterprises belongs to the newly-established enterprises in "old, small, border and poor" areas determined by the state in case of serious natural disasters such as "wind, fire, water and earthquake" by taxpayers, and the annual income tax reduction or exemption reaches or exceeds 1 million yuan, which will be examined and approved by State Taxation Administration of The People's Republic of China; The tax reduction or exemption of the remaining enterprises shall be examined and approved by the state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans.

V. Procedures for examination and approval of tax reduction or exemption

(1) Taxpayers applying for tax reduction or exemption must report to the competent tax authorities step by step, and the examination and approval authorities do not directly accept taxpayers' applications for tax reduction or exemption;

(2) after receiving the taxpayer's application for tax reduction or exemption, the competent tax authorities must verify the application item by item, put forward specific preliminary examination opinions and reports, and report them step by step according to the examination and approval authority;

(3) After receiving the tax reduction or exemption report from the tax authorities at lower levels, the tax authorities at higher levels shall timely check or approve it in accordance with the provisions of the examination and approval authority. For tax reduction or exemption matters with large amount or wide influence, special investigations shall be conducted and the situation shall be verified before making a decision.

VI. Supervision and management of tax reduction or exemption

Tax reduction or exemption must be used according to the purposes stipulated by the state and the requirements conducive to economic development. The tax authorities should strengthen their supervision and inspection. The supervision and inspection includes:

(1) During the period of enjoying tax reduction or exemption, taxpayers who have been approved to reduce or exempt taxes must submit tax returns, financial and accounting statements and information on the use of tax reduction or exemption in accordance with unified regulations, and accept the supervision and inspection of the tax authorities;

(2) When the conditions for taxpayers to enjoy tax reduction or exemption change, they shall report to the tax authorities in a timely manner, and after being audited by the tax authorities, they shall determine whether to continue to grant tax reduction or exemption according to the changes;

(3) The competent tax authorities should regularly check the tax reduction or exemption of taxpayers. If it is found that the tax reduction or exemption should not be continued due to changes in the taxpayer's situation or the taxpayer does not use the tax reduction or exemption according to the prescribed purposes, the tax authorities have the right to stop granting tax reduction or exemption, and if the circumstances are serious, the corresponding tax reduction or exemption should be recovered. After the expiration of the tax reduction or exemption period, tax collection should be resumed from the day after the expiration;

(4) If a taxpayer cheats for tax reduction or exemption by means of concealment or deception, or arbitrarily reduces or exempts tax according to the relevant provisions without the approval of the tax authorities, it shall be handled according to the relevant provisions of the Law of the People's Republic of China on Tax Collection and Administration;

(5) The tax authorities at higher levels shall conduct regular or irregular inspections on the management of tax reduction or exemption by the tax authorities at lower levels.

VII. Statistical reporting of tax reduction or exemption

(1) The competent tax authorities shall establish an account of tax reduction or exemption for taxpayers, and register in detail the approval time, duration, amount and purpose of tax reduction or exemption;

(2) All localities should establish a statistical system for tax reduction and exemption, and make regular statistics on tax reduction and exemption in their own areas. The specific format and time shall be determined by the tax bureaus of provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans.

(3) Before the end of May each year, the tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning shall submit the tax reduction or exemption for the previous year to State Taxation Administration of The People's Republic of China. The format of the report is the same as that in Schedule 2 of the Enterprise Income Tax Return.

All localities may formulate supplementary provisions according to these Measures, and all previous provisions that are inconsistent with these Measures shall be implemented according to these Provisions.

There are many specific provisions in various localities.