The income tax of financial institutions refers to the enterprise income tax generated by financial institutions in the daily production and operation process, or the personal income tax declared and paid by the staff of financial institutions and external individuals themselves or entrusted institutions in the form of withholding after providing services such as work and labor services for the institutions and obtaining income.

The personal income tax involved by the staff of financial institutions and external individuals is the same as that of ordinary enterprises; However, the corporate income tax of financial institutions has corresponding pre-tax deduction items. According to the first provision of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Policy Issues Concerning Pre-tax Deduction of Enterprise Income Tax for Deposit Insurance of Banking Financial Institutions, the deposit insurance premium paid by banking financial institutions according to the relevant provisions of the Deposit Insurance Regulations and the deposit insurance rate not exceeding 1.6% is allowed to be deducted before enterprise income tax.