(1) Government subsidies related to assets.
Government subsidies related to assets refer to government subsidies obtained by enterprises for purchasing, building or otherwise forming long-term assets.
When an enterprise obtains government subsidies related to assets, it cannot be directly recognized as current profits and losses, but should be recognized as deferred revenue. When the relevant assets reach the predetermined usable state, they will be evenly distributed within the service life of the assets and included in the profits and losses (non-operating income) in the following periods. If the relevant assets are sold, transferred, scrapped or damaged before the end of the service life, the undistributed deferred revenue balance shall be transferred to the profit and loss (non-operating income) during the current asset disposal period.
(2) Government subsidies related to income.
Government subsidies related to income refer to government subsidies other than those related to assets.
Government subsidies related to income are used to compensate the related expenses or losses of enterprises in the future, which are recognized as deferred income when they are obtained, and are included in the current profit and loss (non-operating income) during the period when the related expenses are recognized; If it is used to compensate the related expenses or losses of the enterprise, it will be directly included in the current profit and loss (non-operating income) when it is obtained.
In terms of income tax, the financial funds that should be included in the total income obtained by enterprises from the financial departments and other departments of the people's governments at or above the county level can be regarded as non-taxable income and deducted from the total income when calculating the taxable income:
(a) the enterprise can provide special funds disbursement documents;
(two) the financial department or other government departments that allocate funds have special fund management measures or specific management requirements for funds;
(3) An enterprise shall separately account for funds and expenditures incurred with funds.
According to the provisions of Article 28 of the Implementing Regulations, the expenses used for the above-mentioned non-taxable income shall not be deducted when calculating the taxable income; Depreciation and amortization of assets used for expenses shall not be deducted when calculating taxable income.
After the enterprise treats the financial funds that meet the conditions stipulated in Article 1 of this Notice as non-taxable income, the part that has not been spent within five years (60 months) and has not been returned to the financial department or other government departments that allocated the funds shall be included in the total taxable income of the sixth year after obtaining the funds; Financial expenditures included in taxable income are allowed to be deducted when calculating taxable income.