The deduction standard of donation expenditure is the donation expenditure used by enterprises for public welfare undertakings through public welfare social organizations or people's governments at or above the county level and their departments. According to the information released by Zhejiang Provincial Taxation Bureau, the deduction standard of donation expenditure is: donation expenditure used for charitable activities and public welfare undertakings is allowed to be deducted when calculating taxable income; The part exceeding the total annual profit 12% is allowed to be deducted when calculating the taxable income within three years after carry-over.

The significance of donation expenditure is that it helps to promote public services, infrastructure construction and other public welfare actions, and also helps to improve social conditions.