In practice, many large group companies will set up special foundations when designing their internal organizational structures, aiming at giving part of the profits realized in the business process to professional institutions, conducting more efficient charitable activities through donations, fulfilling corporate social responsibilities and giving back to society. Some of these foundations will temporarily manage idle funds to achieve meager results? Income? At the same time, it will also lead to the problem of tax-related treatment.

1. What is a foundation?

Charitable foundation (referred to as foundation) refers to a non-profit legal person established in accordance with the Regulations on the Administration of Foundations, with the purpose of engaging in public welfare undertakings by using the property donated by natural persons, legal persons or other organizations.

Foundations are divided into those that raise funds for the public and those that are not allowed to raise funds for the public. According to the Regulations on the Administration of Foundations, foundations must be registered with the civil affairs department before they can operate legally. Essentially, foundations are non-profit organizations.

Second, can the foundation invest and manage funds?

Strictly speaking, foundations are essentially non-profit organizations, and should not be able to invest and manage funds specially used for donations.

However, in practical work, it is difficult for enterprises to find a suitable donation channel quickly and accurately, and often a large amount of idle funds will be deposited in the foundation's account. Financial personnel will think it is a pity from their own professional judgment and choose to invest and manage the money. The purpose is not to make a profit, but to preserve the value of assets through banking media.

3. Does the wealth management income of the Foundation need to pay enterprise income tax?

According to the relevant provisions of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Issues Concerning the Identification and Management of Tax Exemption Qualification of Non-profit Organizations (Caishui [2065 438+08] 13):

All kinds of non-profit organizations need to be recognized by the accreditation body and obtain the tax exemption qualification of non-profit organizations before they can enjoy preferential policies. ?

Therefore, it is a prerequisite for all kinds of non-profit organizations to enjoy tax incentives to identify their tax exemption qualifications.

In addition, the tax exemption qualification of non-profit organizations needs to meet the following conditions:

(1) Institutions, social organizations, foundations, social service institutions, places for religious activities, religious institutions and other non-profit organizations recognized by the Ministry of Finance and State Taxation Administration of The People's Republic of China, which are established or registered according to relevant laws and regulations of the state;

(2) engaging in public welfare or non-profit activities;

(three) the income obtained, except for the reasonable expenses related to the organization, shall be used for public welfare or non-profit undertakings approved by registration or stipulated in the articles of association;

(four) the property and its fruits are not used for distribution, but it does not include reasonable wages and salaries;

(5) In accordance with the provisions of the registration and approval or the articles of association, the surplus property of the organization after cancellation is used for public welfare or non-profit purposes, or the registration administration organ adopts disposal methods such as transferring it to an organization with the same nature and purpose as the organization, and announces it to the public;

(6) Investors do not retain or enjoy any property rights in the property invested in the Organization. Investors mentioned in this paragraph refer to legal persons, natural persons and other organizations other than people's governments at all levels and their departments;

(7) The salary and welfare expenses of the staff shall be controlled within the prescribed proportion, and the property of the institution shall not be distributed in disguise. Among them, the average salary level of staff shall not exceed 2 times the average salary level of similar organizations in the same industry at or above the prefecture level where the tax registration is located, and the welfare benefits of staff shall be implemented in accordance with relevant state regulations;

(8) The taxable income and its related costs, expenses and losses shall be accounted for separately from the non-taxable income and its related costs, expenses and losses.

Referring to the specific provisions in Item (4) of the above clause, the tax-free fruits income is only the interest earned by deposit in the bank, which belongs to tax-free income, but the wealth management income is not.