1. State-owned industrial enterprises that have been rectified, have normal production order and management, implement independent economic accounting, and are profitable can, with approval, trial profit retention in accordance with these measures. 2. Change the original stipulated amount of profit retention method to the method of base profit retention plus growth profit retention method. If the enterprise's profit for the current year is higher than the previous year's profit, of which: the part equal to the previous year's profit shall be withdrawn as a base profit reserve fund according to the approved proportion; the part of the profit that increases compared with the previous year shall be withdrawn as a reserve fund according to the proportion prescribed by the state. If the enterprise's current year's profit is lower than the previous year's profit, the base profit reserve fund will be withdrawn based on the current year's profit and the approved ratio. When calculating base profit retention and growth profit retention, the increased profits from technical projects undertaken using depreciation funds and self-raised funds should be included.

Enterprises can use base profit retention and growth profit retention funds as production development funds, employee welfare funds and employee incentive funds. 3. The proportion of the enterprise's base profit retention shall be determined with reference to the proportion of the following funds in the previous year to the total profit of the same year when approving the pilot:

(1) Enterprises with new product trial production tasks can generally be based on The new product trial production fee is calculated as 1% of the total profit; for a few enterprises with many new product trial production tasks, it is calculated as 2% of the total profit; for machinery industry enterprises, it is calculated as 3% of the total profit. Enterprises that do not have new product trial production tasks, such as coal mines, oil fields, power plants, power stations, forests, logging, railways, transportation and other mines, etc., do not calculate this expense.

(2) Scientific research funds and employee technical training fees are calculated based on the actual amount allocated by the state to the enterprise (excluding the three science and technology expenses and measure fees specially allocated by the state). The above-mentioned expenses listed by the enterprise outside of costs or operations shall still be implemented in accordance with the original regulations.

(3) The employee welfare fund extracted from costs is calculated based on 11% of total wages.

(4) Employee bonuses paid out of costs are calculated as 10% of the standard total salary for general enterprises; a few advanced enterprises can increase it appropriately, but it shall not exceed 10% of the standard total salary. two.

(5) The enterprise funds withdrawn from profits by grassroots enterprises shall not exceed 5% of the total salary, and shall be determined by the competent departments of enterprises according to the different situations of the enterprises.

The amounts in items (1) and (2) above are the production development fund, and the amount in item (3) and 80% of the amount in item (5) are for employees. Welfare fund; the amount in item (4) and 20% of the amount in item (5) are employee incentive funds. These three funds must separately determine the profit retention ratio.

The total profit calculated as a proportion of the base profit is the profit after deducting the return of the technical loan. After the employee welfare funds and employee bonuses that were originally deducted from costs are withdrawn from profits, the total profit proportional to the base profit calculation should be increased accordingly.

After the trial implementation of the profit retention method, the state will no longer allocate funds for any expenses that should be spent in profit retention funds, and enterprises will not be allowed to include them in costs, nor will they withdraw corporate funds. 4. The proportion of profits retained by enterprises from growing profits is stipulated according to different industries as follows:

(1) 10% for enterprises with higher profitability such as petroleum, electric power, petrochemicals and complete sets of equipment imported from abroad;

(2) 20% for metallurgy, machinery, electronics, chemical industry, light industry, textile, building materials, forest industry, railway, transportation and other enterprises;

(3) ) 30% for coal, postal and telecommunications, civil aviation, and agricultural machinery enterprises. 5. The determination of the enterprise’s base profit retention ratio shall be based on a top-down, step-by-step approach. The total profit retention ratio of each province, city, autonomous region and central competent department shall be determined by the State Economic Commission and the Ministry of Finance. Each province, city, autonomous region, and central competent authority may separately determine the profit retention ratio of its affiliated enterprises (or companies) within the overall profit retention ratio approved by the state. 6. After the base profit retention ratio is determined, it will remain unchanged for three years in principle. If the following circumstances occur, corresponding adjustments can be made:

(1) The state adjusts product prices, adjusts the prices of main raw materials, and reforms the tax system. There is a significant increase or decrease in corporate profits;

(2) During industrial reorganization, enterprises make adjustments that result in a significant increase or decrease in corporate profits;

(3) State investment After the newly built or expanded workshops, branch factories and affiliated factories are put into operation, the profits of the enterprise have increased significantly;

(4) The profits of the enterprise have been reduced due to the payment of fixed asset tax and the payment of fixed loan interest. 7. Industrial enterprises must complete the four planned indicators of output, quality, profit and supply contract before they can withdraw all profit retention funds according to the approved and prescribed retention ratio. For each of the four planned indicators that is missed, 10% of the profit retention funds that should be withdrawn (including base profit retention funds and growth profit retention funds) will be deducted.

The assessment indicators for railway, transportation, postal and telecommunications, and civil aviation enterprises shall be separately negotiated by each competent department and the Ministry of Finance. 8. The base profits withdrawn by the enterprise as retained funds can be withdrawn according to regulations if the monthly plan indicators are completed. If the monthly plan indicators are not prepared or have not been completed, 80% can be withheld on a monthly basis. Growth profits are retained as funds. Enterprises that have completed more than 50% of the annual plan in the first half of the year can withhold 50% according to regulations. Enterprises that have completed less than 50% of the annual plan cannot withhold funds. The profit retention funds that the enterprise should withdraw shall be included in the final accounts after the end of the year, and shall be settled after review by the enterprise's competent department and the financial department at the same level.

When an enterprise withdraws profits as retained funds, it shall be calculated based on the profits after returning the payment for technical measures.