Financial funds that should be included in the total income obtained by enterprises from the financial departments and other departments of people's governments at or above the county level, which meet the following conditions at the same time, can be regarded as non-taxable income and deducted from the total income when calculating the taxable income: (1) The enterprise can provide funds allocation documents for the special purpose of the funds; (two) the financial department or other government departments that allocate funds have special fund management measures or specific management requirements for the funds; (three) the enterprise shall separately account for the funds and the expenditures incurred with the funds.
After the enterprise has treated the financial funds that meet the prescribed conditions as non-taxable income, the part that has not been spent within 5 years (60 months) and has not been returned to the financial department or other government departments that allocated funds should be included in the total taxable income of the sixth year after obtaining the funds; Expenditures incurred by fiscal funds included in the total taxable income are allowed to be deducted when calculating taxable income.
According to relevant regulations, expenses incurred as non-taxable income for expenditure shall not be deducted when calculating taxable income; The depreciation and amortization of assets used for expenditure shall not be deducted when calculating taxable income.
It is very difficult for the general tax authorities to identify you as non-taxable income, because they are also afraid of being criticized or punished by their superiors, so they still pay taxes directly.