Our company is a dangerous goods production and storage enterprise, and has drawn the safety production fee according to the regulations. Can unused safety production expenses be deducted before enterprise income tax this year? If not, do you need to increase the price at the final settlement?

A: It can't be deducted, but it needs to be increased.

According to Article 10 of the Enterprise Income Tax Law and Article 55 of the Regulations for the Implementation of the Enterprise Income Tax Law, the unapproved reserve expenditure, that is, the reserve expenditure that does not meet the requirements of the competent department of finance and taxation of the State Council, shall not be deducted before the enterprise income tax.

In addition, according to Article 1 of the Announcement on Pre-tax Deduction of Maintenance Fees of Coal Mining Enterprises and Safety Production Expenses of Enterprises in High-risk Industries in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (State Taxation Administration of The People's Republic of China Announcement No.26, 20 1 1), the actual safety production expenses are allowed to be deducted before enterprise income tax; The accrued safety production expenses shall not be deducted before enterprise income tax.

Therefore, if the actual expenditure of the enterprise's accrued safety production expenses occurs in 2020, it is allowed to be deducted before the enterprise income tax; Unused safety production expenses are accrued expenses, which have not actually occurred and are not allowed to be deducted before enterprise income tax. The portion that is not allowed to be deducted before enterprise income tax needs to be increased when the annual settlement is made.