Calculation method

Direct method

The total income of an enterprise in each tax year minus non-taxable income, tax-free income, various deductions and allowed compensation The balance after losses from previous years is taxable income. [2]

Taxable income = total income - non-taxable income - tax-exempt income - various deductions - losses in previous years [1]

Indirect method

The taxable income is the taxable income after adding or subtracting the amount of items adjusted in accordance with the tax law from the total accounting profit. [2]

Taxable income = total accounting profit ± amount of tax adjustment items [2]

The amount of tax adjustment items includes two aspects: First, the financial accounting treatment of the enterprise The amount that is inconsistent with tax regulations should be adjusted; the second is the amount of tax that the enterprise is allowed to deduct in accordance with tax laws. [3]

Confirmation of taxable income:

The basis for calculating corporate income tax is the taxable income of the enterprise, which refers to the total income of the taxpayer in each tax year minus To allow the balance after deduction of the item amount.

The calculation of taxpayers' taxable income is based on the accrual basis. The correct calculation of taxable income is closely related to cost and expense accounting, and directly affects the national fiscal revenue and the tax burden of enterprises. . When taxpayers calculate taxable income, the taxable income calculated in accordance with the tax law is often inconsistent with the accounting income (accounting profit) calculated by the enterprise in accordance with the financial accounting system. When an enterprise's financial and accounting treatment methods are inconsistent with relevant tax laws and regulations, income tax shall be calculated and paid in accordance with the provisions of national tax laws and regulations.

1. Determination of total income

The total income of taxpayers includes production and operation income, property transfer income, interest income, leasing income, royalty income, dividend income and Other income.

(1) Production and operation income: refers to the income obtained by taxpayers from engaging in main business activities. Including commodity (product) sales revenue, labor service revenue, operating revenue, project price settlement revenue, industrial operation revenue and other business revenue.

(2) Property transfer income: refers to the income obtained by taxpayers from the paid transfer of various types of property, including income obtained from the transfer of fixed assets, securities, equity and other properties.

(3) Interest income: refers to the interest earned by taxpayers on purchases of various bonds and other securities, interest paid on arrears from external entities, and other interest income.

(4) Lease income: refers to the rental income obtained by taxpayers from leasing fixed assets, packaging materials and other properties.

(5) Royalty income: refers to the income obtained by taxpayers from providing or transferring the right to use patent rights, non-patented technologies, trademark rights, copyrights and other franchises.

(6) Dividend income: refers to the dividends and bonus income received by taxpayers from foreign investments.

(7) Other income: refers to all income other than the above-mentioned income, including fixed asset surplus income, fine income, payables that cannot be paid due to creditors, material and cash overflows. Surplus income, additional refunds for education fees, packaging deposit income and other income.

2. Contents of allowed deduction items

Items allowed to be deducted from income when calculating taxable income refer to the costs, fees, and taxes related to the taxpayer’s income. and losses.

(1) Cost, that is, production and operating costs, refers to the various direct expenses and various indirect expenses incurred by taxpayers to produce and operate goods and provide labor services.

(2) Expenses refer to the sales (operating) expenses, management expenses and financial expenses incurred by taxpayers for the production and operation of goods and provision of labor services.

(3) Taxes, that is, consumption tax, business tax, urban and rural maintenance and construction tax, resource tax, land value-added tax, etc. paid by taxpayers in accordance with regulations.

(4) Loss, that is, various non-operating expenditures incurred by the taxpayer in the production and operation process, operating losses, investment losses and other losses that have occurred.

3. Items that are not deductible:

When calculating taxable income, the following items shall not be deducted from the total income:

(1) Capital Sexual expenditure; refers to taxpayers’ expenditure on purchasing and constructing fixed assets and investing abroad.

(2) Intangible asset transfer and development expenditures: refer to the expenses incurred by taxpayers in purchasing or self-developing intangible assets that cannot be directly deducted. The portion of intangible asset development expenditures that have not formed assets is allowed to be deducted.

(3) Fines for illegal operations and losses of confiscated property: refers to fines imposed by relevant departments and losses of confiscated property by taxpayers whose production and operations violate national laws, regulations and rules.

(4) Late payment fees, fines and fines for various taxes: refers to late payment fees and fines imposed on taxpayers who violate tax regulations, as well as various fines other than the illegal business fines mentioned in the preceding paragraph. .

If a taxpayer repays a bank loan overdue, the penalty interest charged by the bank in accordance with regulations is not an administrative penalty and is allowed to be deducted before tax.

(5) Compensation for natural disasters or accidents: refers to the compensation provided by the insurance company after the taxpayer participates in property insurance and suffers natural disasters or accidents.

(6) Public welfare and relief donations that exceed the deduction allowed by state regulations, as well as non-public welfare and relief donations: taxpayers who make public welfare and relief donations shall have an annual taxable income of 3 ( Financial and insurance enterprises are allowed to deduct the portion within 1.5), but taxpayers' non-public welfare and relief donations are not allowed to be deducted.

(7) Various sponsorship expenditures: refers to various non-advertising sponsorship expenditures.

(8) Other expenditures that are not related to the income obtained: refer to various expenditures that are not related to the taxpayer’s income, such as guarantee expenditures, rebate expenditures, risk investment reserve expenditures, etc.

IV. Deduction standards for wages and salaries expenses

Wages and salary expenses are all cash or salary payments paid by taxpayers to employees who work for the enterprise or have an employment relationship with them in each tax year. Non-cash forms of labor remuneration include basic wages, funds, allowances, year-end salary increases, overtime wages, and other expenses related to office or employment.

Regional subsidies, price subsidies and missed meal subsidies should all be used as wages and salaries.

If the actual wages and salaries paid by taxpayers are within the taxable salary standard, they can be deducted according to the actual situation; the portion exceeding the standard shall not be deducted when calculating taxable income.

5. Expenditures on employee union funds, employee welfare fees, and employee education funds

Taxpayers’ employee union funds, employee welfare fees, and employee education funds shall be calculated based on the total taxable wages. 2, 14, and 1.5 are calculated and deducted. If the total amount of wages actually paid by an enterprise is higher than its taxable wage standard, deductions should be calculated and deducted separately based on the taxable wage standards; if the actual total wages paid by an enterprise are lower than its taxable wage standards, deductions should be calculated and deducted based on the actual total wages paid. .

6. Scope of provision for depreciation of fixed assets

The following fixed assets shall be depreciated:

(1) Houses and buildings;

(2) Machinery and equipment, transportation vehicles, appliances and tools in use;

(3) Machinery and equipment that are out of service for season and for overhaul;

(4) ) Fixed assets leased by operating leases;

(5) Fixed assets leased by finance leases;

(VI) Other depreciation provisions stipulated by the Ministry of Finance of fixed assets.

The following fixed assets shall not be depreciated:

(1) Land;

(2) Unused or unused items other than houses and buildings; Sealed fixed assets;

(3) Fixed assets leased by financial lease;

(IV) Fixed assets leased by operating lease;

(5) Fixed assets that have been included in the cost in one lump sum;

(6) Fixed assets that have been fully depreciated and continue to be used;

(7) Bankruptcy , fixed assets of closed enterprises;

(8) Fixed assets scrapped in advance;

(9) Fixed assets accepted as donations;

(10) Other fixed assets that are not allowed to be depreciated as specified by the Ministry of Finance.

7. Basis and method for depreciation of fixed assets

The basis for depreciation of fixed assets is the original value of the fixed assets.

(1) Taxpayers’ fixed assets shall accrue depreciation from the month following the month when they are put into use; for fixed assets that cease to be used, depreciation shall cease from the month following the month when they cease to be used.

(2) The calculation of depreciation of fixed assets deductible by taxpayers shall, in principle, adopt the straight-line depreciation method. Before calculating depreciation, the residual value should be estimated and deducted from the original price of the fixed asset; the residual value ratio shall be within 5% of the original price and shall be determined by the enterprise; if the residual value ratio needs to be adjusted due to special circumstances, it shall be reported to the competent tax authority for filing.

(3) The period for depreciation of fixed assets shall be implemented in accordance with the regulations of the industry-specific financial system formulated by the Ministry of Finance.

8. Deduction standards for business entertainment expenses

Business entertainment expenses incurred by taxpayers that are directly related to their business operations can be deducted within the proportion specified below.

If the annual net sales (operating) income is 15 million yuan or less, it shall not exceed five thousandths of the net sales income; if the annual net sales (operating) income exceeds 15 million yuan, , not exceeding three thousandths of that part.

If a taxpayer declares business entertainment expenses to be deducted and the competent tax authority requires the provision of supporting documents, he or she shall provide sufficient valid certificates or documents to prove the authenticity. If it cannot be provided, it shall not be deducted before tax.

9. Deduction standards for advertising expenses

(1) If the taxpayer’s advertising expenses incurred in each tax year do not exceed sales (business) income 2, they can be deducted according to the actual situation. The excess amount can be carried forward indefinitely to future years.

(2) Since January 1, 2001, pharmaceuticals, food (including health products, beverages), daily chemicals, home appliances, communications, software development, integrated circuits, real estate development, sports culture and furniture In industries such as building materials malls, advertising expenses incurred in each tax year shall not exceed sales (business) income of 8%, which can be deducted according to the actual situation, and the excess can be carried forward indefinitely to subsequent years.

(3) High-tech enterprises and Internet websites engaged in software development, integrated circuit manufacturing and other businesses, and venture capital enterprises engaged in high-tech venture capital investment, within 5 tax years from the date of registration and establishment, Upon review by the competent tax authorities, advertising expenditures may be deducted based on the facts.

(4) Advertising fees for grain liquor shall not be deducted before tax.

If taxpayers really need to increase the deduction ratio of advertising fees due to special reasons such as industry characteristics, they must report to the State Administration of Taxation for approval.

10. Deduction standards for business promotion expenses

The business promotion expenses incurred by taxpayers in each tax year (including advertising expenditures not passed through the media) shall not exceed the sales (business ) can be deducted based on the actual income within the range of 5% of the income.

11. Deduction standards for employee pension funds, unemployment insurance funds, basic medical insurance, employment security funds for disabled people, and statutory personal safety insurance premiums for employees in special jobs

(1) Employee pension funds refer to the retirement pension funds paid by taxpayers for the employees of the enterprise in accordance with a certain proportion stipulated by relevant national departments. Currently, the portion submitted is calculated as 20% of the enterprise's standard salary and can be deducted before tax;

(2) Unemployment insurance fund refers to the funds specially handed over by taxpayers to the labor department in order to meet the temporary relief needs of laid-off employees. Currently, the portion paid is calculated as 1% of the enterprise's standard salary and can be deducted before tax;

(3) Basic medical insurance funds refer to the funds taxpayers turn over to relevant departments in accordance with regulations to participate in medical insurance for employees of the enterprise. Currently, the portion submitted is calculated as 9% of the enterprise's standard salary and can be deducted before tax;

(4) Employment security fund for persons with disabilities refers to the security fund for persons with disabilities paid by the enterprise in accordance with local government regulations if it fails to arrange employment for persons with disabilities in accordance with regulations. It is allowed to be deducted when calculating taxable income;

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(5) Statutory personal safety insurance premiums paid by taxpayers for employees in special types of work are also allowed to be deducted on an actual basis. It mainly refers to the statutory personal safety insurance paid for employees engaged in special work such as high altitude, underground, and seabed. The amount is generally stipulated by the labor and insurance departments.

Life insurance or property insurance purchased by taxpayers from commercial insurance institutions for their investors or employees, as well as supplementary insurance purchased for employees in addition to basic insurance, shall not be deducted.

12. Standards for deducting technology development expenses

Various expenses incurred by enterprises in researching and developing new products, new technologies, and new processes can be deducted on an actual basis, and the increase in annual development expenses will be For enterprises with a margin of 10% or more, their actual expenses incurred in the year can be classified as expenses according to regulations. After review and approval by the provincial and municipal taxation bureau, 50% of the actual amount can be deducted from the taxable income of the year.

13. Deduction standards for bad debt reserves and bad debt reserves

(1) Bad debt reserves: refers to a certain proportion of the taxpayer’s balance of accounts receivable at the end of the year Set aside reserves to write off bad debt losses on its accounts receivable.

Bad debt losses incurred by taxpayers should, in principle, be deducted based on the actual amount incurred. Bad debt reserves may also be withdrawn upon approval by the tax authorities. Bad debt losses incurred by an enterprise that has drawn bad debt reserves should be offset against the bad debt reserves; any actual bad debt losses that exceed the bad debt reserves that have been drawn can be directly deducted in the current period; any bad debts that have been written off can be directly deducted in the current period. When the account is recovered, the taxable income for the current period should be increased accordingly.

For taxpayers who are approved to withdraw bad debt reserves, unless otherwise specified, the withdrawal ratio of bad debt reserves shall not exceed five thousandths of the balance of accounts receivable at the end of the year. The year-end accounts receivable for which bad debt provisions are made are the amounts taxpayers should collect from customers who purchase goods or receive services for selling goods, products or providing services, including transportation and miscellaneous expenses advanced on their behalf. Year-end accounts receivable include the amount of notes receivable.

Bad debt reserves shall not be withdrawn for taxpayers' claims receivable that occur in non-purchase and sales activities and any current accounts between related parties. Current accounts between related parties shall not be recognized as bad debts.

(2) Bad debt reserves are limited to financial and insurance companies. Taxpayers can withdraw a certain proportion of the loan balance at the end of the year to write off bad debt losses on their accounts receivable.

The bad debt reserves withdrawn by taxpayers in accordance with regulations are allowed to be deducted when calculating taxable income. The specific standard for withdrawing bad debt reserves is that for general enterprises, the balance of bad debt reserves is withdrawn at 1% of the year-end loan balance; for rural credit cooperatives, the balance of bad debt reserves is withdrawn at 1.5% of the year-end loan balance.

14. Deductions of various in- and out-of-price funds

The various in- and out-of-price funds (funds, surcharges, charges) collected and paid by enterprises must be collected with the approval of the State Council or the Ministry of Finance. If the funds are included in the fiscal budget or extra-budgetary special financial accounts at the same level according to regulations, and the two-line management of revenue and expenditure is implemented, no corporate income tax will be levied, and enterprises will be allowed to deduct pre-tax when calculating and paying corporate income tax.

15. Deduction of national debt interest income

Treasury debt refers to debts borrowed by the state from individuals, groups or foreign countries in accordance with prescribed methods and procedures to raise government funds, including: Treasury bonds, special treasury bonds, value-protected bonds, etc. issued by the Ministry of Finance to balance the fiscal budget. Excludes national key construction bonds issued by the State Planning Commission and financial bonds approved by the People's Bank of China.

In order to encourage taxpayers to actively purchase treasury bonds and support national construction, the tax law stipulates that interest income earned by taxpayers from purchasing treasury bonds will not be included in taxable income and no income tax will be levied.

16. Tax treatment of reduction, exemption or refund of turnover tax

For the reduction or refund of turnover tax for enterprises (including refund upon collection, refund after collection), except for the State Council and the Ministry of Finance Except for the designated purposes stipulated by the Ministry of Finance and the State Administration of Taxation, it shall be incorporated into corporate profits and corporate income tax shall be levied in accordance with regulations. For direct tax exemptions and immediate refunds, they should be included in the company's profits for the year to collect corporate income tax; for tax first and then refund and first collection and refund, they should be included in the company's profits for the year when the company actually receives tax refunds or refunds. Income Tax.

17. The issue of determining the prices of products produced by enterprises for their own use

Enterprises use their own products for projects under construction, management departments, non-productive institutions, donations, sponsorships, etc. Fund-raising, advertising, samples, employee benefits, rewards, etc. should be treated as external sales. The sales price of its products should refer to the market sales price of similar products in the same period; if there is no reference price, the taxable price should be composed of cost plus reasonable profit.

18. Questions about whether accrued or unaccounted deductions are not allowed in subsequent years:

Accrued or unaccounted deductions of an enterprise during the tax year include various accrued and unaccounted expenses. , depreciation that should be provided but not provided, etc., if it is not made up or made up when the annual income tax is settled and settled, it shall not be made up or made up in the following years.

19. Provisions on making up losses

If a taxpayer suffers an annual loss, it can use the income of the next tax year to make up for it; if the income of the next tax year is insufficient to make up, it can be extended year by year. Make up, but the extended make-up period shall not exceed five years.

The amount of loss is not the amount of loss reflected in the company's books, but the amount verified and adjusted by the tax authorities in accordance with tax laws. [1]

2 Calculation Principles

The calculation of corporate taxable income is based on the accrual basis. Income and expenses belonging to the current period, regardless of whether the payment is received or paid, are regarded as Income and expenses for the current period; income and expenses that do not belong to the current period, even if the money has been received in the current period, are not regarded as income and expenses for the current period.

Please accept it as a satisfactory answer.

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