2. When an institution accepts unrestricted property donations, it shall make pricing according to the market price of similar property or relevant certificates provided by the donor, and the expenses incurred in accepting property donations shall be included in the amount of donated property. When institutions receive donated property, they should debit "materials" or "bank deposits" and credit "other income" according to the determined value.
buy
Borrow: fixed assets
Loans: bank deposits
Make entries in budget accounting:
Debit: business expenditure
Loan: fund balance ... monetary fund
donate
Debit: Asset disposal expenses.
Accumulated depreciation of fixed assets
Loans: fixed assets
How to handle fixed assets donation?
1. If it is a fixed asset donated by an individual, it will be simpler. The donated fixed assets are of little value. Just contact the recipient directly to collect it. Pay attention to save relevant vouchers and supervise their use. If it is a big piece with high value, you have to go through the relevant transfer procedures, such as a building, and you have to pay certain taxes. It is reported that the tax authorities will collect the deed tax in full from the donee if the individual gives it free of charge.
2. In case of donating the company's property, an equipment donation agreement shall be drawn up, with a donation list clearly indicating the name, purchase time, quantity and unit price of the equipment in duplicate, and each party shall keep one copy after signing.
3. Accounting treatment of donated fixed assets:
Debit: liquidation of fixed assets
accumulated depreciation
Loans: fixed assets
Borrow: non-operating expenses-donation
Loan: liquidation of fixed assets
Taxes payable-VAT payable-Output
The next step is tax treatment. The policy stipulates that the public welfare donation expenses incurred by enterprises as stipulated in the Enterprise Income Tax Law of People's Republic of China (PRC) are allowed to be deducted when calculating the taxable income. The public welfare donation mentioned in Article 9 of the Enterprise Income Tax Law refers to the donation made by enterprises to public welfare undertakings as stipulated in the Public Welfare Donation Law of People's Republic of China (PRC) through public welfare social organizations or people's governments at or above the county level and their departments. For tax processing enterprises that donate cash for public welfare, if the cash donation is within the range of 12% of the total profit, it is allowed to be deducted before tax, and the part that exceeds the proportion of profit 12% should be taxed to increase the taxable income.