If the government subsidy income you mentioned conforms to the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Enterprise Income Tax Treatment of Special Financial Funds (Caishui [2009] No.87) and the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Enterprise Income Tax Policy for Administrative Fees of Government Funds (Caishui [2008] 15 1), it is non-taxable income, then it does not conform to this. Other income mentioned in Item (9) of Article 6 of the Enterprise Income Tax Law as stipulated in Article 22 of the Regulations for the Implementation of the Enterprise Income Tax Law refers to other income obtained by an enterprise except the income stipulated in Items (1) to (8) of Article 6 of the Enterprise Income Tax Law, including enterprise asset surplus income, overdue packaging deposit income, accounts payable that cannot be paid, accounts receivable recovered after bad debt losses are handled, etc. This part of the income belongs to the "subsidy income" of other income, so it is necessary to confirm the income and collect enterprise income tax, and it is not allowed to directly offset the start-up expenses.

The organization expenses shall be handled in accordance with Article 9 of the Notice of State Taxation Administration of The People's Republic of China on the Connection of Several Tax Matters of Enterprise Income Tax (No.98 [2009] of the State). "In the new tax law, the start-up expenses are not clearly listed as long-term prepaid expenses, and the enterprise can deduct them at one time in the year when it starts to operate, or deal with them in accordance with the provisions of the new tax law on long-term prepaid expenses, but once selected, they shall not be changed. The start-up expenses of enterprises that have not been amortized one year before the implementation of the new tax law can also be handled according to the above provisions. "

According to Article 10 of the Enterprise Income Tax Law, "fines, fines and confiscated financial losses" are items that cannot be deducted when calculating taxable income. Therefore, no matter during the preparation period or during the normal production and operation period, the administrative fines incurred are not allowed to be deducted before tax.