According to Article 1 of Announcement on Pre-tax Deduction Certificate of Trade Union Funds in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Announcement No.24 of State Taxation Administration of The People's Republic of China No.20 10), from July of10, the part of trade union funds allocated by enterprises that does not exceed 2% of total wages and salaries will be deducted before enterprise income tax with the special receipt of trade union funds issued by trade union organizations. According to the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Pre-tax Deduction Certificate of Enterprise Income Tax on Trade Union Funds Collected by Tax Authorities (State Taxation Administration of The People's Republic of China Announcement [20 1 1] No.30), starting from 201KLOC-0/,trade union funds appropriated by enterprises can also be used in areas where tax authorities entrust to collect trade union funds. To sum up, the deduction of trade union funds before enterprise income tax must meet the following conditions: the trade union funds that are allowed to be deducted before tax must be the part actually "allocated" by the enterprise, and the trade union funds that have been accrued but not actually "allocated" shall not be deducted before tax in the tax year. Obtaining legal and valid credentials for those who do not exceed 2% of the total wages and salaries: According to the current tax law, trade union funds are not deducted before tax by invoices, but by "special receipts for trade union funds income" or trade union funds collection credentials. To sum up, after calculating the trade union funds at 2% of the total wages and salaries of all employees every month, pay them to the tax authorities entrusted with the collection of trade union funds according to local regulations (generally 40%) and obtain the credentials for collecting trade union funds; The retained part (generally 60%) shall be allocated by the enterprise to the local grass-roots trade union at the same time, and a special receipt for trade union fund income issued by the grass-roots trade union of the unit shall be obtained. Can be fully deducted before enterprise income tax. Individuals paying 40% or enterprises with a special proportion according to regulations will be deducted before enterprise income tax according to "40% payment".