The detailed provisions are as follows:
1. Public welfare donation refers to the donation provided by enterprises to public welfare undertakings stipulated in the People's Republic of China (PRC) Public Welfare Donation Law through public welfare social organizations or people's governments at or above the county level and their departments. Other donations are non-public welfare donations.
1. Deduction standard
Donations made by enterprises to specific events such as Wenchuan earthquake in Sichuan, post-earthquake reconstruction in Yushu, Gansu, and Shanghai World Expo can be fully deducted before tax.
Other public welfare donation expenses incurred by the enterprise, which are within 12% of the total annual profit, are allowed to be deducted when calculating the taxable income. Non-public welfare donation expenses shall not be deducted.
The total annual profit refers to the amount greater than zero calculated by the enterprise according to the unified accounting system of the state.
2. Conditions that should be met at the same time
(1) Donors should meet the requirements.
Eligible donors include: public welfare social organizations, public welfare mass organizations, people's governments at or above the county level, their constituent departments and directly affiliated institutions that meet the pre-tax deduction conditions for public welfare donations.
People's governments at or above the county level and their constituent departments and directly affiliated institutions do not need to identify the pre-tax deduction qualification of public welfare donations.
Public welfare social organizations and public welfare mass organizations meet the prescribed conditions, and after the financial and tax departments jointly examine and confirm with the civil affairs department, they will publish the release list.
(two) for public welfare undertakings.
Public welfare refers to the scope of public welfare as stipulated in the People's Republic of China (PRC) Public Welfare Donation Law, including:
Activities of social groups and individuals with difficulties such as disaster relief, poverty alleviation and disability assistance;
Education, science, culture, health and sports;
Environmental protection, social public facilities construction;
Other social undertakings and welfare undertakings that promote social development and progress.
(3) Obtaining public welfare donation bills
For public welfare donation expenses incurred through public welfare social organizations, enterprises should obtain public welfare donation bills printed by the financial departments at or above the provincial level (including the provincial level) and stamped with the seal of the donation unit, or the receipt of non-tax income general payment book stamped with the seal of the donation unit, before pre-tax deduction can be made according to the regulations.
3. Non-deductible charitable donations
For the public welfare donation expenses incurred through public welfare social organizations and public welfare mass organizations, if the public welfare social organizations and mass organizations receiving donations are located in the list, the public welfare donation expenses incurred by enterprises or individuals to the public welfare social organizations and mass organizations in the list in the year to which the list belongs can be deducted before tax in accordance with regulations; Public welfare social organizations and mass organizations that accept donations are not included in the list, or public welfare donation expenses incurred by enterprises or individuals are not included in the list, and shall not be deducted.
4. Other issues that should be paid attention to.
(1) The expenditure on charitable donations should be calculated in summary, that is, the total expenditure on charitable donations in the whole year should not exceed the standards stipulated in the tax law, and the excess should not be deducted in the current year and the following years.
(2) When an enterprise makes a public welfare donation, in addition to the list of public welfare social organizations and public welfare mass organizations published in the above-mentioned documents, it is also necessary to pay attention to the list of public welfare social organizations and public welfare mass organizations that meet the pre-tax deduction conditions for public welfare donations and the year to which the list belongs.
(3) Enterprises directly donate monetary funds, physical assets and other assets to individuals or units, which do not belong to the scope of public welfare donations, and should be regarded as sponsorship expenses, and shall not be deducted before tax.
Second, the enterprise income tax rate
The corporate income tax rate is 25%.
Small and low-profit enterprises that meet the requirements shall be subject to enterprise income tax at a reduced rate of 20%.
High-tech enterprises that need special support from the state shall be subject to enterprise income tax at a reduced rate of 15%.