The preferential tax methods of enterprise income tax stipulated in the tax law include tax exemption, tax reduction, additional deduction, accelerated depreciation, reduction of income, tax credit and so on. Tax preference refers to a measure that the state uses tax policy to reduce or exempt the tax burden on a certain part of specific enterprises and tax recipients in tax laws and administrative regulations.

Tax incentives can be divided into three basic types:

1, tax-based concessions. Reduce the tax burden by directly narrowing the tax basis. Common specific methods include threshold, exemption amount, project deduction and inter-period carry-over;

2. Tax rate concessions. Set a tax rate below the normal level in some cases;

3. Tax concessions. A preferential way to directly reduce the tax payable under the condition that the tax base and tax rate remain unchanged. The main ways of tax preference are stipulated reduction ratio, tax refund, tax credit and tax concession credit.

Tax reduction refers to the measures to reduce the tax payable calculated according to the tax rate stipulated in the tax law. The ways of tax reduction include one-time tax reduction, phased tax reduction or tax reduction within a specific period of time. Usually, tax reduction is a measure to encourage certain industries or enterprises.

Tax exemption refers to the measure of not collecting the tax payable according to the provisions of the tax law. Tax exemption is usually to encourage certain industries or implement specific programs. Encouraged by national policies, some enterprises can enjoy tax exemption policies to reduce the tax burden.

Export tax rebate refers to the measures to refund the turnover tax originally undertaken by export enterprises for exported goods. Export enterprises can apply to the competent tax authorities for export tax refund, and after obtaining the tax refund certificate, they can get the corresponding tax refund. This is an important policy to encourage exports and improve export competitiveness.

Retreat first refers to the measure of collecting the tax payable by taxpayers first, and then returning it in full or in part by the financial department. This form is different from the export tax rebate, which is to give preferential treatment to enterprises through tax rebate according to the actual situation of taxpayers. Retreat first is a kind of support and help for enterprises, and it is also a policy to encourage enterprises to produce.

In addition, according to accounting standards, enterprises can also enjoy preferential tax reduction and exemption when paying VAT. Accounting entries should be recorded in the borrower's tax payable-VAT payable-tax relief, while the lender should be recorded in the non-operating income-tax relief.

It should be noted that different preferential policies are applicable to different enterprises or industries. Moreover, the tax policy may be adjusted at any time. Therefore, enterprises need to pay attention to the dynamic changes of tax policies from time to time in order to better obtain the benefits of preferential policies.

I hope the above contents can help you. If you have any questions, please consult a professional lawyer.

Legal basis:

Article 25 of the Enterprise Income Tax Law of the People's Republic of China

The state gives preferential enterprise income tax to industries and projects that are supported and encouraged to develop.

Article 26

The following income of an enterprise is tax-free income:

(1) debt interest's income;

(two) dividends, bonuses and other equity investment income between qualified resident enterprises;

(3) Non-resident enterprises that set up institutions and places in China obtain dividends, bonuses and other equity investment income that are actually related to the institutions and places from resident enterprises;

(4) Income of qualified non-profit organizations.

Article 27

The following income of an enterprise may be exempted or reduced from enterprise income tax:

(a) income from agriculture, forestry, animal husbandry and fishery projects;

(two) income from the investment and operation of public infrastructure projects supported by the state;

(3) Income from engaging in qualified environmental protection, energy-saving and water-saving projects;

(4) Income from qualified technology transfer;

(5) Income as stipulated in the third paragraph of Article 3 of this Law.

Article 28

Small and low-profit enterprises that meet the requirements shall be subject to enterprise income tax at a reduced rate of 20%.

High-tech enterprises that need special support from the state shall be subject to enterprise income tax at a reduced rate of15%.