1. Donation expenses of enterprises to public welfare undertakings through public welfare social organizations or people's governments at or above the county level and their departments are allowed to be deducted when calculating taxable income, which is lower than 12% of total annual profits. The total annual profit refers to the amount greater than zero calculated by the enterprise according to the unified accounting system of the state.
2. Individuals' donations to public welfare undertakings through social organizations and state organs are allowed to be deducted before income tax in accordance with existing tax laws, administrative regulations and relevant policies.
3. Donation expenditure for public welfare undertakings refers to the donation expenditure for public welfare undertakings stipulated by law.
Accounting treatment of donated goods:
1. If the donor provides relevant documents (such as invoices, customs declarations, relevant agreements, etc.), the actual expenses are the amount indicated on the documents plus the relevant taxes payable.
2. If the donor cannot provide relevant vouchers, the actual cost shall be determined in the following order:
(1) If there is an active market for the same or similar inventory, the amount estimated according to the market price of the same or similar inventory, plus the relevant taxes payable, shall be regarded as the actual cost;
(2) If there is no active market for the same or similar inventory, the actual cost shall be the present value of the estimated future cash flow of the donated inventory.
To sum up, enterprises should pay enterprise income tax when accepting donations, and the income obtained by enterprises from various sources in monetary and non-monetary forms is the total income, including the income from accepting donations and the total income of enterprises in each tax year, and the balance after deducting non-taxable income, tax-free income, various deductions and losses allowed to make up in previous years is the taxable income; If an individual accepts a donation, the income from the donation does not fall within the scope of personal income tax collection, and no personal income tax needs to be paid.
Legal basis:
Article 24 of the People's Republic of China (PRC) Public Welfare Donation Law
Companies and other enterprises that donate property to public welfare undertakings in accordance with this law shall enjoy preferential enterprise income tax in accordance with the provisions of laws and administrative regulations.
Article 25
Natural persons and individual industrial and commercial households donate property to public welfare undertakings in accordance with the provisions of this law and enjoy preferential personal income tax in accordance with the provisions of laws and administrative regulations.