Government subsidy means that an enterprise obtains monetary assets or non-monetary assets from the government for free, but does not include the capital invested by the government as the owner of the enterprise. At present, China's government subsidies mainly include financial discount, R&D subsidies and policy subsidies.
Extended Information All domestic enterprises or other organizations that implement independent economic accounting in People's Republic of China (PRC) and China include the following six categories:
State-owned enterprises, collective enterprises, private enterprises, joint ventures, joint-stock enterprises and other organizations with production and operation income and other income. An enterprise refers to an enterprise registered in accordance with state regulations. Other organizations with production and operation income and other income refer to institutions, social organizations and other organizations that have production and operation income and other income and are approved by relevant state departments and registered according to law.
Independent economic accounting refers to having a settlement account in the bank at the same time; Set up accounting books independently and prepare financial and accounting statements; Independent calculation of profit and loss, etc. Sole proprietorship enterprises and partnership enterprises can levy personal income tax on these two types of enterprises without using this law to avoid double taxation.
Baidu Encyclopedia-Enterprise Income Tax