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Does the state allocate special funds for energy conservation and environmental protection to private enterprises to pay enterprise income tax? If not, what is the basis?
With regard to financial allocations (or financial subsidies), except for the items explicitly exempted by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China, all other items shall be included in taxable income and paid enterprise income tax.

The new tax law implementation regulations also have similar provisions. Forty-fifth enterprises in accordance with the relevant provisions of laws and administrative regulations to withdraw special funds for environmental protection, ecological restoration, etc., are allowed to deduct. If the above-mentioned special funds change after extraction, they shall not be deducted.