Legal Basis: Measures for the Administration of Enterprise Income Tax Collection of Public Institutions, Social Organizations and Private Non-enterprise Units Article 3 The income of public institutions, social organizations and private non-enterprise units shall be included in the taxable income, except for the items exempted from enterprise income tax as stipulated by People's Republic of China (PRC) the State Council, Ministry of Finance and State Taxation Administration of The People's Republic of China, and enterprise income tax shall be levied according to law. The calculation formula is as follows: taxable income, total income-the amount of income items exempted from enterprise income tax. The total income in the above formula includes financial subsidy income, superior subsidy income, business income, operating income, income paid by affiliated units and other income of institutions, social organizations and private non-enterprise units. Unless otherwise specified, the income items exempted from enterprise income tax in the above formula are as follows:

(1) financial allocation

(2) government funds, funds and additional income. Established and collected with the approval of the State Council and the Ministry of Finance, and incorporated into the financial budget management or the special account management of extra-budgetary funds;

(3) Administrative fees approved by the State Council and provincial people's governments (excluding cities under separate state planning) and included in the financial budget management or the special account management of extra-budgetary funds;

(4) Extrabudgetary funds that are not turned over to the financial special account management with the approval of the Ministry of Finance;

(five) the special subsidy income obtained by the institution from the competent department and the superior unit for career development;

(six) the income obtained by public institutions from the after-tax profits of their independent accounting business units;

(seven) government funding at all levels obtained by social organizations;

(eight) membership fees collected by social organizations in accordance with the provisions of the civil affairs and finance departments at or above the provincial level;

(9) Donation income from all walks of life.