Corporate donations can be deducted from corporate income tax under certain conditions. This is a preferential tax policy formulated by the state to encourage companies to actively participate in social welfare undertakings.
1. The basic concept of corporate donation deduction from corporate income tax
Corporate donation refers to cash or other assets voluntarily transferred by enterprises for social welfare. According to national tax regulations, companies can use donation expenditures as a deduction for corporate income tax under certain conditions, thereby reducing the tax the company should pay.
II. Conditions for enterprise donations to be deducted from corporate income tax
1. Donation objects: Enterprise donations must be made to public welfare social groups or people's governments at or above the county level and their constituents that comply with national regulations department. Donations to individuals or other non-profit organizations are not tax deductible.
2. Donation amount: The amount of corporate donation generally needs to be within a certain proportion of the company’s total annual profits. The specific proportion is determined according to national tax regulations. The portion exceeding the prescribed proportion cannot enjoy tax deduction.
3. Donation method: Corporate donations generally take the form of currency, but can also take the form of non-monetary forms such as physical objects and intangible assets. However, non-monetary donations need to be evaluated in accordance with national tax regulations.
3. Procedures for enterprise donations to deduct corporate income tax
1. When enterprises make annual income tax settlements, they need to include donation expenditures as corporate income tax deduction items and provide Relevant supporting materials.
2. The tax authorities will review the donation certification materials provided by the enterprise to confirm the authenticity and compliance of the donation.
3. After review and confirmation, the tax authorities will allow the enterprise to use donation expenditure as a deduction item for corporate income tax, thereby reducing the tax payable by the enterprise.
IV. The significance of corporate donations being deducted from corporate income tax
The implementation of the policy of corporate donations being deducted from corporate income tax is not only conducive to encouraging companies to actively participate in social welfare undertakings, but also to improve corporate image and social A sense of responsibility is also conducive to optimizing the tax structure and promoting social equity and economic development.
In summary: Corporate donations can be deducted from corporate income tax under certain conditions. This is a preferential tax policy formulated by the state to encourage companies to actively participate in social welfare undertakings. While enjoying tax deductions, enterprises should also actively fulfill their social responsibilities and contribute to social welfare undertakings.
Legal basis:
"Enterprise Income Tax Law of the People's Republic of China"
Article 9 stipulates:
"Enterprise Income Tax Law" The amount of public welfare donation expenditure incurred within 12% of the total annual profit is allowed to be deducted when calculating taxable income; the part exceeding 12% of the total annual profit is allowed to be carried forward and deducted when calculating taxable income within the next three years. .
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