Private wholly-owned enterprises themselves do not pay corporate income tax, so their non-operating income (demolition compensation) will not involve corporate income tax.

The demolition compensation for sole proprietorships mainly includes compensation for demolished assets, compensation for business suspension, compensation for relocation expenses, etc. If the enterprise actively cooperates with the government's demolition work, it will also receive policy compensation.

The standard of compensation is set by the local demolition office based on the actual situation. If the amount of compensation received by the enterprise is too different from the actual loss, it can be submitted to the management department. If it cannot be resolved, it can be File an administrative lawsuit.

Extended information:

The similarities between sole proprietorships and individual industrial and commercial households

First, the investment entities of the two are basically the same. The investment subjects of both can only be natural persons (citizens), not legal persons or other organizations.

Second, sole proprietorships and individual industrial and commercial households implement a declaration system for invested assets and do not need to go through capital verification by a statutory capital verification agency. Since both have unlimited liability, there is no emphasis on the actual payment of physical objects, industrial property rights, non-patented technology and land use rights as capital contributions.

Third, the form of legal liability for both parties is the same, and both must bear unlimited liability with personal or family property. If divided by the way of investment, individual industrial and commercial households can be divided into two forms: personal business and family business; and sole proprietorships can also be divided into sole proprietorships invested with personal property and sole proprietorships invested with family property.

In terms of liability, sole proprietorships or individual industrial and commercial households that invest with personal property bear unlimited liability with their personal property. Sole proprietorships or individual industrial and commercial households that invest with family property bear unlimited liability with family property.

Fourth, as an economic organization, sole proprietorships and individual industrial and commercial households must have necessary funds, locations, employees and production and operation conditions. This is also a necessary condition for individual industrial and commercial households and sole proprietorships to enter the market as market entities.

In addition, sole proprietorships and individual industrial and commercial households also have many similarities in terms of trademark users and advertising strategies.

The difference between a sole proprietorship and an individual industrial and commercial household

First, a sole proprietorship must have a fixed production and business location and a legal business name, while an individual industrial and commercial household cannot afford The name of the trade name can also be operated in a mobile manner without a fixed production and business location. In other words, a legal business name and a fixed production and business location are the requirements for the establishment of a sole proprietorship, but not for the establishment of an individual industrial and commercial household.

Second, the investors and operators of individual industrial and commercial households are the same person, and both must be natural persons who invest in the establishment of individual industrial and commercial households. The investor and operator of a sole proprietorship can be different people, and the investor can entrust or hire others to manage the affairs of the sole proprietorship.

In other words, the ownership and management rights of a sole proprietorship can be separated, which determines that a sole proprietorship is more in line with the characteristics of the modern enterprise system. The ownership and management rights of individual industrial and commercial households are concentrated in the investor, which can no longer adapt to the requirements of the development of the modern enterprise system, so it can only be applied to small-scale operating entities.

Third, a sole proprietorship can establish a branch or appoint another person to be the person in charge of the branch of the sole proprietorship. This provision explains that a sole proprietorship can not only establish branches within the jurisdiction of the registration management authority, but also set up branches in other places, and the sole proprietorship that establishes the branch shall bear the responsibility.

According to regulations, individual industrial and commercial households cannot establish branches. On the other hand, although individual industrial and commercial households can operate in other places, as various regions have simplified the registration procedures for outsiders in recent years, the requirement for individual industrial and commercial households to operate in other places has gradually been weakened. It can be seen from this that the overall size of sole proprietorships is generally larger than that of individual industrial and commercial households.

Baidu Encyclopedia--Sole Proprietorship