Taxable income refers to the taxable income of an enterprise after knowing that the taxpayer will deduct the taxable income within a certain period of time in accordance with the provisions of the tax law, and the balance after deducting various expenses allowed by law is the taxable income of the enterprise.
The taxable income stipulated in the enterprise income tax law refers to the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and allowable losses in previous years. The calculation of taxable income of an enterprise is based on accrual basis, which belongs to the income and expenses of the current period, regardless of whether the payment is received or not. The income and expenses that do not belong to this period, even if the money has been received and paid in this period, are not regarded as the income and expenses of this period. Unless otherwise provided by the competent departments of finance and taxation of the State Council.
According to the tax law:
(1) Income from wages and salaries is taxable income, which is the balance of 800 yuan after deducting expenses from monthly income.
(2) The total income of individual industrial and commercial households in each tax year, after deducting costs, expenses and losses, is the taxable income. If taxpayers engaged in production and business operations cannot provide complete and accurate tax payment information and cannot correctly calculate the taxable income, the competent tax authorities shall verify their taxable income.
Investors of a sole proprietorship enterprise shall take the income from its production and operation as taxable income. The investors of a partnership enterprise shall determine the taxable income according to the total income from the production and operation of the partnership enterprise and the distribution ratio agreed in the partnership agreement. If the partnership agreement does not stipulate the distribution ratio, the taxable income of each investor shall be calculated based on the total production and operation income and the number of partners.
Legal basis: According to Article 5 of the Enterprise Income Tax Law of People's Republic of China (PRC), the total income of an enterprise in each tax year, after deducting non-taxable income, tax-exempt income, various deductions and losses allowed to make up in previous years, is taxable income.