The current tax reduction and exemption methods for various circulating taxes stipulate: (Excerpt) Taxes reduced or reduced by enterprises should be directly transferred to the "Production Development Fund" account and shall not be used for other purposes. Otherwise, the tax department has the right to recover the tax that has been reduced or reduced. The above method

, there are clear regulations on the accounting treatment of enterprises subject to tax reduction and exemption. However, some enterprises' accounting treatment is: debit (increase) and debit "bank deposits", or debit (decrease) "tax payable enterprises".

", credit (increased) to "Special Fund - Employee Welfare Fund, Incentive Fund,". Some companies do not accrue tax payable at all during the tax holiday, while some companies do accrue it and transfer it to the profit account at the end of the year.

In order to correctly implement tax policies and regulations, my humble opinion on the issue of tax exemptions and exemptions in the accounting of enterprises is: Any tax exemptions and exemptions provided to enterprises according to the provisions of tax laws, whether it is limited time (exemption period) or quota (tax exemption amount).

, or rate-limited (reduced tax rate), whether it is reduced or reduced circulation taxes or reduced income taxes, enterprises should withdraw them in accordance with regulations, and they will be treated as special funds allocated to enterprises by the national budget and local finance.

The full amount of tax exemptions should be kept in the company's accounts for a long time and cannot be changed at will. Enterprises that continue to pay capital occupation fees should also be incorporated into the total national fund collection.