Our country is vigorously developing its economy in order to create a powerful country. Competition among many companies is very high, and the state will provide subsidies to some companies with development prospects.

Below, in order to help you better understand the relevant legal knowledge, I have compiled relevant content. I hope it will be helpful to you.

1. What are the forms of state subsidies for enterprises? Subsidy refers to the state’s compensation for losses suffered by enterprises due to conducting business activities in accordance with the types and methods prescribed by the state, including refunds of value-added tax, etc.

The enterprise's subsidy income directly forms part of the total profit. In accounting, subsidy income is non-recurring profit and loss, which refers to the company's occurrence that has no direct relationship with the production and operation, and although it is related to the production and operation, its nature and amount

Or the frequency of occurrence is not certain and continuous.

Various forms of subsidy income received by enterprises can be roughly divided into three categories from a project perspective: content related to scientific research and innovation, such as grant subsidies for scientific research project applications, patent application funding, technological innovation, development funds, new product subsidies, etc.

; Contents related to production, such as value-added tax refunds for software companies, self-operated export awards, fiscal subsidy income (for various interest discounts), environmental management fund subsidies, etc.; Contents related to various corporate honors, such as awards for famous brand products

, provincial model enterprise awards, national new product awards, inspection-free product awards, etc.

Most of the above subsidies and incentives are subsidies and incentives provided by the local government's finance, science and technology, environmental protection and information departments to local enterprises.

State subsidy income refers to the state fiscal subsidies and other subsidy income that taxpayers receive from the State Council, the Ministry of Finance, and the State Administration of Taxation and are not included in profits and losses.

The tax law stipulates that state subsidy income is not subject to corporate income tax.

2. In terms of tax law provisions, according to the "Notice of the Ministry of Finance and the State Administration of Taxation on the Incorporation of Reductions, Refunds and Refunds of Turnover Tax into Enterprise Profits for the Collection of Income Tax" (Caishui Zi [94] No. 074): "The rebates or rebates of turnover tax for enterprises (

(Including immediately collected and refunded, first collected and refunded), except for items with designated purposes specified by the State Council, the Ministry of Finance, and the State Administration of Taxation, all shall be incorporated into corporate profits, and corporate income tax shall be levied in accordance with regulations.

The corporate income tax shall be levied on the profits of the enterprise in the current year; in the case of tax first and refund after tax collection and tax refund first, the corporate income tax shall be levied on the profits of the enterprise in the year in which the enterprise actually receives the tax refund or refund.” According to Finance and Taxation Zi [1995] 81.

Document No. 1 stipulates that state fiscal subsidies and other subsidy income obtained by enterprises, except those that are not included in profits and losses as stipulated by the State Council, the Ministry of Finance and the State Administration of Taxation, shall be incorporated into the taxable income of the year in which the subsidy income is actually received.

Therefore, any fiscal subsidies and other subsidy income obtained by an enterprise that can provide documents from the State Council, the Ministry of Finance or the State Administration of Taxation are subsidy income designated by the state. After review by the competent tax authorities, they will not be included in the taxable income.

The "Enterprise Income Tax Adjustment Item Table" is regarded as the tax adjustment reduction and is listed in "State Subsidy Income".

The items that are exempt from corporate income tax are as follows: (1) According to the provisions of Caishui [1996] No. 68, starting from January 1, 1996, with the approval of the State Council, it was decided to provide fiscal subsidies to state-owned grain enterprises for the custody of government grain and oil reserves.

Exempt from sales tax.

Government grain and oil reserves refer to: national grain and oil reserves (including "A" grain and oil reserves, "506" grain and oil reserves), national special grain and oil reserves, national temporary oil reserves, and various types of grain and oil reserves established by local people's governments at all levels.

To regulate the throughput of the grain market.

Fiscal subsidy income refers to the interest subsidy and fee subsidy income obtained by state-owned grain enterprises from finance or grain authorities at all levels for keeping the above-mentioned government reserves of grain and oil.

(2) According to the provisions of Guoshui Hanfa [1997] No. 21, the value-added tax refund obtained by an enterprise from exporting goods should be offset against the corresponding "input tax" or the value-added tax paid, and shall not be incorporated into profits for corporate income tax; production

If an enterprise entrusts a foreign trade enterprise to act as an agent for exporting products, and in accordance with the Ministry of Finance's "Regulations on the Accounting Treatment of Consumption Tax" ([1993] Accounting No. 83), "accounts receivable" is handled when calculating consumption tax, the consumption tax it receives

Tax refunds should be offset against "accounts receivable" and not incorporated into profits for corporate income tax; consumption tax refunds obtained from self-operated exports by foreign trade enterprises should be offset against "cost of goods sold" and not directly incorporated into profits for corporate income tax.

(3) According to the provisions of Caishui [2003] No. 115, before the end of 2005, the fiscal subsidy income obtained by China Cotton Reserve Corporation and its directly affiliated cotton warehouses will be exempt from corporate income tax (4) According to the provisions of Caishui [2000] No. 25

, from June 24, 2000 to the end of 2010, for general VAT taxpayers who sell self-developed and produced software products, after VAT is levied at the legal rate of 17%, their actual VAT tax burden exceeds 3%

Some of them implement a policy of immediate withdrawal upon collection.