Government subsidies are not necessarily tax-free. Enterprises must pay taxes on their income, and paying taxes is the obligation of every citizen. However, enterprises that obtain non-taxable fiscal funds for special purposes from government finance departments and other departments are exempt from tax in accordance with the law.

Are government subsidies required to be taxed?

No, no tax is required for the following:

1. Science and education certificates issued by provincial people's governments, ministries and commissions of the State Council, units above the Chinese People's Liberation Army, as well as foreign organizations and international organizations , technology, culture, health, sports, environmental protection, etc.;

2. Interest on national bonds and financial bonds issued by the state

3. Subsidies issued in accordance with unified national regulations , allowances;

4. Welfare fees, pensions, and relief funds;

5. Insurance compensation;

6. Military transfer fees and demobilization fees< /p>

7. Settlement allowance, severance pay, retirement pay, retirement pay, and retirement living allowances shall be paid to cadres and employees in accordance with unified national regulations;

8. In accordance with the relevant laws and regulations of our country, Tax-free income from diplomatic representatives, consular officers and other personnel of embassies and consulates of various countries in China;

9. Income that is exempt from tax in international conventions and agreements signed by the Chinese government;

10. Tax-free income approved by the financial department of the State Council.

In summary, government subsidy income is not necessarily non-taxable income or tax-free income (corporate income tax). Enterprises should pay taxes accordingly on their income, and paying taxes is the obligation of every citizen.

Legal basis:

Enterprise Income Tax Law

Article 7

The following income in the total income is non-taxable income :

(1) Fiscal appropriations;

(2) Administrative fees and government funds collected in accordance with the law and included in financial management;

(3) Other non-taxable income specified by the State Council.

Article 26

The following income of an enterprise is exempt from tax:

(1) Interest income from national debt;

(2) ) Dividends, bonuses and other equity investment income between qualified resident enterprises;

(3) Non-resident enterprises that have established institutions or places in China obtain from resident enterprises that are actually related to the institutions or places. Related dividends, dividends and other equity investment income;

(4) Income from qualified non-profit organizations.