Articles 6 and 7 of the Provisional Regulations on Enterprise Income Tax stipulate that donations for public welfare and relief are allowed to be deducted from the annual taxable income within 3% when calculating the taxable income; Donations for public welfare and disaster relief, as well as donations for non-public welfare and disaster relief, shall not be deducted if they exceed the amount allowed by state regulations. According to Article 12 of the Detailed Rules for the Implementation of the Enterprise Income Tax Regulations, the above-mentioned public welfare and relief donations refer to the donations provided by taxpayers to public welfare undertakings such as education and civil affairs and areas suffering from natural disasters and poverty-stricken areas through non-profit social organizations and state organs in China; Donations made by taxpayers directly to recipients are not allowed to be deducted. Due to the particularity of financial and insurance enterprises, the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Income Tax of Financial and Insurance Enterprises (Caishuizi [1994] No.027) stipulates that the donation expenses of enterprises for public welfare relief shall conform to the relevant provisions of the state, and can be counted as non-operating expenses according to the facts within the standard of not exceeding 65,438+0.5% of the taxable income of enterprises in the current year, and calculated.
Notice of State Taxation Administration of The People's Republic of China on Pre-tax Deduction of Donations for Public Welfare Disaster Relief from Enterprises and Other Social Forces to China Social and Cultural Development Foundation (Guo [2002] No.890) stipulates that, Enterprises and other social forces, through the China Social and Cultural Development Foundation, donate to the following publicity and cultural undertakings, as well as the part within 0/0% of the annual taxable income of corporate income taxpayers, which can be deducted when calculating the taxable income: (1) donations to national key symphony orchestras and orchestras, and (2) donations to public libraries, museums, science and technology museums, art galleries and revolutionary history memorial halls. (three) donations to key cultural relics protection units. (four) donations of social welfare activities, projects and cultural facilities accepted by non-production and operation cultural centers and mass art museums affiliated to the administrative department of culture.
Since 2000, the Ministry of Finance and State Taxation Administration of The People's Republic of China have stipulated in the Notice on Issues Concerning Income Tax Policies on Donations by Enterprises and Other Social Forces to the Red Cross (Caishui [2000] No.30) and other notices that the donations made by enterprises to the Red Cross, rural compulsory education, China Health Express Foundation, Soong Ching Ling Foundation and rural boarding school construction projects are allowed to be fully deducted when paying enterprise income tax.
planning scheme
1. Tax comparison between cash donation and in-kind donation
Enterprise A decides to donate 50,000 yuan to enterprise B, and there are two ways to choose from: one is to donate 50,000 yuan; Another way is to donate goods with a fair value equivalent to 50 thousand yuan. The enterprise applies the enterprise income tax rate of 33% and the value-added tax rate of 17%. The cash outflow in the form of cash donation is 50,000+50,000× 33% = 66,500 yuan; The cash outflow from donations in kind is 50000+50000×17%+(50000+8500 )× 33% = 77805 yuan. It can be seen that enterprises can reduce cash outflow by donating cash.
2. Tax comparison between selling goods before giving cash and donating goods directly.
Example A enterprise decides to donate goods with a cost of 9000 yuan to enterprise B, and the fair market value is 10000 yuan. If the enterprise donates goods directly, its accounting entries are as follows:
Debit: non-operating expenses 10700
Credit: 9000 in stock.
Taxes payable-VAT payable 1700
The income tax payable for this business is 10700×33%=353 1 yuan, and its cash outflow is10700+3531=14231yuan.
If the goods are sold first and then cash is given, the accounting entries are:
When selling goods:
Debit: bank deposit 1 1700.
Loan: main business income 10000.
Taxes payable-VAT payable 1700
Borrow: the main business cost is 9000 yuan.
Loan: When 9000 items in stock are donated in cash.
Debit: non-operating expenses 10000
Loan: bank deposit 10000.
The income tax payable for this business is (10000+1000) × 33% = 3630 yuan. The cash outflow of this enterprise is 9000+10000+3630-11700 =10930 yuan. It can be seen that in the case of donating cash according to market value, the amount of donated cash outflow is still high.
3. Comparison of tax payment methods for donated fixed assets.
Sales of old fixed assets in accordance with the provisions of value-added tax, the sales price does not exceed its original value, can be exempted from value-added tax. If there is a disassembly and cleaning fee, it should be paid after sale. If there is no removal and clean-up fee, it will not affect the income tax paid by the donated enterprises, but from the perspective of the recipient unit, this method should also be adopted.
For example, enterprise A donated a machine tool it used to enterprise B, with the original value of 60,000 yuan, depreciation of 10000 yuan, and the donation rate was 50,000 yuan, and the disassembly cost was 2,000 yuan. The accounting entries of the first sale gift method are as follows
(1) Transfer the net value of fixed assets to the liquidation of fixed assets.
Debit: 50,000 yuan for clearing fixed assets.
Accumulated depreciation 10000
Loan: 60,000 yuan of fixed assets.
(2) Pay the cleaning fee
Borrow: Fixed assets liquidation 2000
Loan: Bank deposit 2000.
(3) Sale of fixed assets
Debit: 50,000 yuan from the bank.
Non-operating expenditure in 2000
Loan: fixed assets liquidation 52000.
(4) Donate cash to Enterprise B..
Debit: 50,000 yuan for non-operating expenses.
Loan: 50,000 yuan in bank deposit.
The income tax payable for this activity is 50,000× 33% = 65,438+06, 500 yuan. The expenses incurred in cleaning up are regarded as losses in the sales process and shall not be included in the taxable income. If the machine tool is donated directly, and the cleaning expenses are non-operating expenses in the donation and should be included in the taxable income, the taxable income is 52,000× 33% =1,7 1, 60 yuan. It can be seen that it is good for enterprises to give gifts after sale.
4. Comparison of different ways of donating intangible assets.
Donation of intangible assets is regarded as sales, and business tax is required. The business tax payable is included in the non-operating expenses, which shall not be deducted before calculating the income, thus increasing the taxable income. However, the non-operating expenses that cannot be deducted after selling intangible assets and donating their corresponding cash do not include the payable business tax, and can offset the taxable income. So it's good for donors.
From the above analysis, it can be seen that it is beneficial for donation enterprises to convert all kinds of in-kind donations into cash after they are sold.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.