1. If the public welfare donation expenditure incurred by the enterprise is within 12% of the total annual profit, it can be deducted when calculating the taxable income. The total annual profit refers to the amount greater than zero calculated by the enterprise according to the unified accounting system of the state. The proceeds will be donated to the poor. In Article 51 of the Regulations for the Implementation of the Enterprise Income Tax Law, it is clear that the public welfare donation mentioned in Article 9 of the Enterprise Income Tax Law refers to the donation made by enterprises to public welfare undertakings through public welfare social organizations or people's governments at or above the county level and their departments for the public welfare undertakings stipulated in the Donation Law of People's Republic of China (PRC).

2. According to the accounting system for enterprises, the bad debt reserve approved by the tax authorities and with the year-end accrual base not exceeding 0.5% can be deducted before tax.

3. Creditors' debt restructuring losses can be deducted before tax after being reported to the competent tax authorities for approval, provided that the conditions for bad debts are met.

Final settlement refers to the taxpayer's calculation of taxable income and income tax payable for the whole year in accordance with tax laws, regulations, rules and other relevant provisions of enterprise income tax within the specified period after the end of the tax year. According to the income tax paid in advance on a monthly or quarterly basis, the taxpayer determines the amount that should be supplemented or refunded in the year, fills in the annual enterprise income tax return form, submits the annual enterprise income tax return form to the competent tax authorities, and provides relevant information required by the tax authorities for final settlement of the annual enterprise income tax.

Since the implementation of the merger of the two taxes in 2008, the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [2000] No.84) has become invalid, but the provision of pre-tax deduction in Article 8 of the new enterprise income tax law is extremely simple: "The actual reasonable expenses related to income, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income." According to Platinum Consulting, this provision caused many disputes among tax enterprises in 2008. What is reasonable? What does it have to do with income? This makes the financial and tax managers of multinational companies feel hesitant. In view of this, State Taxation Administration of The People's Republic of China plans to issue the Administrative Measures for Pre-tax Deduction of Enterprise Income Tax in 20 14.

Baidu Encyclopedia: Corporate Income Tax Remittance