A: Announcement No.39 of the General Administration of Customs of the State Administration of Taxation of the Ministry of Finance19 "Announcement on Deepening the Reform of Value-added Tax" stipulates that:

Taxpayers shall accrue the current added tax deduction according to 10% of the current deductible input tax. For the input tax that cannot be deducted from the output tax according to the current regulations, the added tax deduction shall not be accrued. If the input tax for which the deduction has been accrued is transferred out according to the regulations, the deduction shall be reduced accordingly in the current period when the input tax is transferred out. The calculation formula is as follows:

Accrual and deduction in current period = deductible input tax in current period × 10%

Current deductible plus deduction = balance of added deduction at the end of last period+added deduction in current period-current deduction plus deduction.

Debit: Taxes payable-VAT payable (input tax plus deduction)

Loan: other income-other

What does pre-tax deduction mean?

Pre-tax deduction refers to the deduction of expenses in proportion on the basis of actual deduction. The deduction is mainly related to enterprise income tax. The expense of internal independent research and development of intangible assets is deducted by 50%, and the capitalized expenses form the amortization of intangible assets at cost 150%. The R&D expenses are deducted by a certain proportion on the basis of the actual amount of research and development expenses incurred in developing new technologies, new products and new processes in accordance with the tax law. As a preferential tax policy for calculating the deductible amount of taxable income, the deduction of wages before enterprise income tax refers to the enterprise's resettlement of disabled persons who meet the provisions of the Law of the People's Republic of China on the Protection of Disabled Persons, and on the basis of the actual deduction of wages paid to disabled employees, the deduction is based on 100% of wages paid to disabled employees.

The "Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China" refers to the additional deduction of wages paid by enterprises to resettle disabled persons in Item (2) of Article 30 of the Enterprise Income Tax Law, which means that on the basis of the actual deduction of wages paid to disabled employees, the additional deduction is made according to 100% of wages paid to disabled employees. The scope of disabled persons is applicable to the People's Republic of China.

How to add and deduct the input tax? If it is only the addition and deduction of value-added tax, other accounting treatment will be very simple, but it is necessary to see clearly that the entries are made in other income, and friends who don't know much about other income subjects and don't know how to use them can just use the contents explained above to deepen their impression.