Legal subjectivity:

What are the deduction items for corporate income tax? The statutory deduction items for corporate income tax are the items based on which the taxable income of corporate income tax is determined. The corporate income tax regulations stipulate that the taxable income of an enterprise is determined by the total income of the enterprise minus costs, expenses, losses and allowed deductions. Costs refer to the direct expenses and indirect expenses incurred by taxpayers in producing, operating goods and providing services. Expenses refer to the sales expenses, management expenses and financial expenses incurred by taxpayers for the production and operation of goods and the provision of labor services. Losses refer to various non-operating expenses, operating losses, investment losses, etc. incurred by taxpayers in the production and operation process. In addition, when calculating the taxable income of an enterprise, if the financial accounting treatment of the taxpayer is inconsistent with the tax regulations, adjustments shall be made in accordance with the tax regulations. In addition to the statutory deduction items for corporate income tax, including costs, expenses and losses, the relevant tax regulations also specify some deduction items that require tax adjustments according to tax regulations. It mainly includes the following contents: ⑴ Deduction of interest expenses. During the period of production and operation, taxpayers' interest expenses on borrowings from financial institutions shall be deducted based on the actual amount incurred; interest expenses on borrowings from non-financial institutions shall not exceed the amount calculated based on the interest rate of similar loans from financial institutions for the same period. deduct. ⑵ Deductions from taxable wages. The regulations stipulate that reasonable wages and salaries of enterprises shall be deducted according to the actual situation. This means that the tax calculation and salary system for domestic-funded enterprises that has been implemented for many years will be cancelled, effectively reducing the burden on domestic-funded enterprises. However, the wages and salaries that are allowed to be deducted based on the facts must be "reasonable", and wages and salaries that are obviously unreasonable will not be deducted. In the future, the State Administration of Taxation will clarify "reasonable" by formulating the "Wage Deduction Management Measures" supporting the "Implementation Regulations". ⑶In terms of employee welfare fees, trade union funds and employee education funds, the Implementing Regulations continue to maintain the previous deduction standards (withdrawal ratios are 14%, 2%, and 2.5% respectively), but adjust the "total taxable wages" to "salaries" "Total salary", the deduction amount will be increased accordingly. In terms of employee education funds, in order to encourage enterprises to strengthen their investment in employee education, the Implementing Regulations stipulate that, unless otherwise specified by the financial and taxation authorities of the State Council, the employee education expenses incurred by enterprises shall not exceed 2.5% of the total wages and salaries, and shall be deducted; any excess shall be allowed to be deducted. Part of this amount is allowed to be carried forward as a deduction in subsequent tax years. ⑷Deduction of donations. Taxpayers' public welfare and relief donations are allowed to be deducted if they are within 12% of annual accounting profits. The portion exceeding 12% is not deductible. ⑸ Deduction of business entertainment expenses. Business entertainment expenses refer to the social entertainment expenses incurred by taxpayers for the reasonable needs of producing and operating business. The tax law stipulates that business entertainment expenses incurred by taxpayers related to production and business operations shall be deducted within the following limits if the taxpayer provides accurate records or documents: Article 43 of the "Regulations on the Implementation of the Enterprise Income Tax Law" further clarifies, Business entertainment expenses related to production and operation incurred by the enterprise shall be deducted according to 60% of the amount incurred, but the maximum shall not exceed 5‰ of the current year's sales (operating income). In other words, the tax law adopts the "two-end card" method. On the one hand , only 60% of the business entertainment expenses incurred by the enterprise are allowed to be deducted, in order to distinguish the commercial entertainment and personal consumption in the business entertainment expenses, and by designing a unified proportion, the personal consumption part of the business entertainment expenses will be removed; on the other hand, The maximum deduction limit is 5‰ of the sales (business) income of the year. This is to prevent some companies from using extra meal invoices or even false invoices to offset the business entertainment expenses in order to increase the business entertainment expenses by 40%. ⑹ Deductions from employee pension funds and unemployment insurance funds. Employee pension funds and unemployment insurance funds are allowed to be deducted when calculating taxable income within the proportion and base recognized by the provincial tax department. Deductions from security funds. The deductions for property and transportation insurance premiums paid by taxpayers are allowed when calculating taxable income. Deducted during tax calculation. However, the no-compensation preferential treatment given to taxpayers by insurance companies shall be included in the taxable income of the enterprise. ⑼ The rental fees of fixed assets leased by taxpayers in the form of operating leases. It can be deducted directly before tax; the leasing fee for leasing fixed assets in the form of financial lease cannot be deducted directly before tax, but the interest expense in the leasing fee can be directly deducted when paying. ⑽ Bad debt reserves and bad debts. Deduction of reserves and commodity price reduction reserves. Bad debt reserves and bad debt reserves drawn by taxpayers are allowed to be deducted when calculating taxable income. The withdrawal standards for commodity price reduction reserves drawn by taxpayers are temporarily allowed. Deducted during tax calculation. ⑾ Deductions for transfer of fixed assets by taxpayers refer to expenses incurred by taxpayers for transfer of fixed assets and other expenses incurred during tax calculation. ⑿ Deduction of net losses from inventory losses, damage, and scrapping of fixed assets and current assets. Net losses incurred by taxpayers from inventory losses, damage, or scrapping of fixed assets shall be deducted after taxpayers provide inventory and inventory information and are reviewed by the competent tax authorities. The net losses mentioned here do not include the income from changes in the fixed assets of the enterprise. The taxpayer's net losses on current assets such as loss, damage, and scrapping can be reported to the tax authorities after the taxpayer provides inventory information and is reviewed by the competent tax authorities. Deduction before.

⒀Deduction of head office management fees. For management fees paid by taxpayers to the head office related to the production and operation of the enterprise, they shall provide documents proving the scope, quota, allocation basis and method of management fees issued by the head office, and shall be allowed to be deducted after being reviewed by the competent tax authorities. ⒁Deduction of national debt interest income. Interest income earned by taxpayers from purchasing government bonds is not included in taxable income. ⒂Deductions from other income. Turnover taxes including various fiscal subsidy income, exemptions or refunds may not be included in the taxable income unless specified by the State Council, the Ministry of Finance and the State Administration of Taxation. The rest shall be included in the calculation of the enterprise's taxable income. Tax. ⒃Deduction for loss compensation. Annual losses incurred by taxpayers can be made up with the income of the next year. If the income of the next tax year is insufficient to make up, the losses can be made up year by year, but the longest period shall not exceed 5 years. Legal objectivity:

Article 10 of the "Enterprise Income Tax Law of the People's Republic of China" When calculating taxable income, the following expenditures shall not be deducted: (1) Dividends, dividends, etc. paid to investors Equity investment income; (2) Corporate income tax; (3) Late tax fees; (4) Fines, fines and losses of confiscated property; (5) Donation expenditures other than those specified in Article 9 of this Law; (6) Sponsorship expenditures; (7) Unapproved reserve expenditures; (8) Other expenditures unrelated to the acquisition of income.