Legal analysis:

According to the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China on the Pre-tax Deduction Policy of Enterprise Income Tax for the Reserve Funds of SME Financing (Credit) Guarantee Institutions and the Enterprise Income Tax Law, SME Financing (Credit) Guarantee Institutions shall not be exempted from tax.

Legal basis:

Article 26 of the Enterprise Income Tax Law stipulates that the following income of an enterprise is tax-free income:

(1) Debt interest income;

(two) dividends, bonuses and other equity investment income between qualified resident enterprises;

(3) A non-resident enterprise establishes an institution or place in China, and obtains dividends, bonuses and other equity investment income actually related to the institution or place from the resident enterprise;

(4) Income of qualified non-profit organizations.

Article 1 of the Notice of SME Financing (Credit) Guarantee Institutions on the Pre-tax Deduction Policy of Reserve Enterprise Income Tax stipulates that the guarantee compensation reserve accrued by qualified SME Financing (Credit) Guarantee Institutions according to the ratio of no more than the balance of guarantee liability at the end of the current year 1% is allowed to be deducted before enterprise income tax, and the balance of guarantee compensation reserve accrued in previous years is converted into current income.