Enterprises engaged in industries that are not restricted or prohibited by the state and meet the three conditions of annual taxable income not exceeding 3 million yuan, employees not exceeding 300 people and total assets not exceeding 50 million yuan are small-scale low-profit enterprises.

Reasonable expenses actually incurred by an enterprise related to income, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income. The public welfare donation expenses incurred by the enterprise are allowed to be deducted when calculating the taxable income within12% of the total annual profit, and the part exceeding12% of the total annual profit is allowed to be deducted when calculating the taxable income within the next three years. When calculating taxable income, the following expenses shall not be deducted:

(a) dividends, bonuses and other equity investment income paid to investors;

(2) Enterprise income tax;

(3) Tax late fees;

(four) fines, fines and losses of confiscated property;

(5) Donation expenditures other than those specified in Article 9 of this Law;

(6) Sponsorship expenditure;

(7) Unapproved reserve expenditure;

(eight) other expenses unrelated to income.

The taxable income of an enterprise is multiplied by the applicable tax rate, and the balance after deducting the tax amount exempted and credited is the taxable amount. The income tax paid overseas for the following income obtained by an enterprise may be deducted from its current tax payable. The credit limit is the tax payable calculated in accordance with the provisions of this Law. The part that exceeds the credit limit may be offset by the balance of the annual credit limit after deducting the tax payable in the current year in the next five years:

(1) Taxable income derived by resident enterprises from outside China;

(2) A non-resident enterprise establishes an institution or place in China and obtains taxable income that occurs outside China but is actually related to the institution or place.

Article 5 of the Enterprise Income Tax Law of the People's Republic of China * * * The taxable income is the total income of an enterprise in each tax year, and the balance after deducting non-taxable income, tax-free income, various deductions and losses in previous years that are allowed to be made up.

Article 6 The income obtained by an enterprise from various sources in monetary and non-monetary forms is the total income. Including:

(1) Revenue from sales of goods;

(2) Income from providing labor services;

(3) Income from the transfer of property;

(four) dividends, bonuses and other equity investment income;

(5) Interest income;

(6) Rental income;

(7) Royalty income;

(8) Receiving donation income;

(9) Other income.