According to Article 7 of the Enterprise Income Tax Law of People's Republic of China (PRC), the following income in the total income is non-taxable income: financial allocation; Administrative fees and government funds collected according to law and incorporated into financial management; Other non-taxable income stipulated by the State Council.

Taxable income is the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and losses allowed to make up in previous years.

Extended data:

The relevant requirements of enterprise income tax stipulate:

1. Expenses or property used for expenditure formed by non-tax income of an enterprise shall not be deducted or the corresponding depreciation and amortization deduction shall be calculated. Unless otherwise stipulated in the Enterprise Income Tax Law and these Regulations, the actual costs, expenses, taxes, losses and other expenses incurred by the enterprise shall not be deducted repeatedly.

2. The expenditure incurred by an enterprise shall be distinguished between revenue expenditure and capital expenditure. Income and expenditure are deducted directly in the current period; Capital expenditure shall be deducted by stages or included in the cost of related assets, and shall not be deducted directly in the current period.

People's Republic of China (PRC) State Taxation Administration of The People's Republic of China-People's Republic of China (PRC) Enterprise Income Tax Law