Financial funds obtained from the financial departments and other departments of the people's governments at or above the county level that should be included in the total income can be regarded as non-taxable income and deducted from the total income when calculating the taxable income: (1) The enterprise can provide funds disbursement documents, which stipulate the special purpose of the funds; (two) the financial department or other government departments that allocate funds have special fund management measures or specific management requirements for funds; (3) An enterprise shall separately account for funds and expenditures incurred with funds. At the same time, it is stipulated that according to the provisions of Article 28 of the Regulations for the Implementation of the Enterprise Income Tax Law, the expenses used by the above-mentioned non-taxable income for expenditure shall not be deducted when calculating the taxable income; Depreciation and amortization of assets used for expenses shall not be deducted when calculating taxable income. If the company's subsidies meet the requirements, it will not pay income tax, and set up a separate account to account for the expenses of subsidy income and municipal public facilities. Those that do not meet the requirements are included in non-operating income and enterprise income tax is calculated. "Regulations for the Implementation of the Enterprise Income Tax Law" Article 28 Expenditure incurred by an enterprise shall be distinguished from income expenditure and capital expenditure. Income and expenditure are deducted directly in the current period; Capital expenditure shall be deducted by stages or included in the cost of related assets, and shall not be deducted directly in the current period. Expenses or property used for expenditure formed by non-tax income of an enterprise shall not be deducted or the corresponding depreciation and amortization deduction shall be calculated. Unless otherwise stipulated in the Enterprise Income Tax Law and these Regulations, the actual costs, expenses, taxes, losses and other expenses incurred by the enterprise shall not be deducted repeatedly.

Legal objectivity:

Article 1 of the Notice of the Ministry of Finance on the Tax Policy of Urban House Demolition in State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) stipulates that the compensation for demolition obtained by the demolished in accordance with the standards stipulated by the relevant national measures for the administration of urban house demolition shall be exempted from personal income tax.