general provisions
article 1
these detailed rules are formulated in accordance with article 19 of the provisional regulations of the people's Republic of China on enterprise income tax (hereinafter referred to as the regulations).
article 2
the income from production and operation mentioned in article 1 of the regulations refers to the income obtained from engaging in material production, transportation, commodity circulation, labor services and other profit-making undertakings confirmed by the financial department of the State Council.
article 3
items (1) to (5) of article 2 of the regulations are state-owned enterprises, collective enterprises, private enterprises, associated enterprises and joint-stock enterprises.
other organizations with income from production, business operation and other income as mentioned in Item 6 of Article 2 of the Regulation
Article 4
Article 2 of the Regulation refers to enterprises or organizations with independent economic accounting, in which taxpayers have the conditions of opening settlement accounts in banks, independently establishing account books, preparing financial and accounting statements and independently calculating profits and losses.
article 5
the formula for calculating the taxable amount mentioned in article 3 of the regulations is:
taxable amount = taxable income × tax rate? [1]? Chapter ii
calculation of taxable income
article 6
the taxable income mentioned in articles 3 and 4 of the regulations is calculated as follows:
taxable income = total income-allowable deduction of project amount
article 7
the income from production and operation mentioned in item (1) of article 5 of the regulations refers to the income obtained by taxpayers from their main business activities.
the term "income from property transfer" as mentioned in item (2) of article 5 of the regulations refers to the income obtained by taxpayers from the transfer of various types of property with compensation, including the income obtained from the transfer of fixed assets, securities, equity and other property.
the term "interest income" as mentioned in item (3) of article 5 of the regulations refers to the interest paid by taxpayers for various bonds and other securities, the interest owed by other units and other interest income.
the term "rental income" as mentioned in item (4) of article 5 of the regulations refers to the rental income obtained by taxpayers from renting fixed assets, packaging materials and other properties.
the royalty income mentioned in item (5) of article 5 of the regulations refers to the income obtained by taxpayers from providing or transferring the right to use patents, non-patented technologies, trademarks, copyrights and other franchises.
the dividend income mentioned in item (6) of article 5 of the regulations refers to the dividends and dividend income shared by taxpayers who invest abroad.
the term "other income" as mentioned in item (7) of article 5 of the regulations refers to all income other than the above-mentioned income, including fixed assets inventory surplus income, fine income, accounts payable that cannot be paid due to creditors' reasons, surplus income of materials and cash, additional refund of education fees, packaging deposit income and other income.
article 8
the costs, expenses and losses related to taxpayers' income mentioned in article 6 of the regulations include:
(1) costs, that is, production and operation costs, refer to all direct costs and indirect costs incurred by taxpayers for producing and operating commodities and providing services.
(2) expenses, that is, the sales (operation) expenses, management expenses and financial expenses incurred by taxpayers for the production and operation of commodities and the provision of services.
(3) taxes, that is, consumption tax, business tax, urban and rural maintenance and construction tax, resource tax and land value-added tax paid by taxpayers according to regulations. Additional education fees can be regarded as taxes.
(4) losses, that is, various non-operating expenditures of taxpayers in the process of production and operation, operating losses, investment losses and other losses that have occurred.
if the taxpayer's financial and accounting treatment is inconsistent with the tax regulations, it should be adjusted according to the tax regulations. The amount allowed to be deducted according to tax regulations is allowed to be deducted.
article 9
the financial institutions mentioned in article 6, paragraph 2 (1) of the regulations refer to all kinds of banks, insurance companies and non-bank financial institutions that engage in financial business with the approval of the people's bank of China.
article 1
the interest expenses mentioned in item (1) of paragraph 2 of article 6 of the regulations refer to the interest expenses of various loans that occurred after the final accounts of the constructed and purchased fixed assets were put into production.
the interest expense of borrowing from financial institutions mentioned in item (1) of paragraph 2 of article 6 of the regulations includes the interest expense of borrowing from insurance companies and non-bank financial institutions.
taxpayers' interest expenses other than those incurred during the construction and purchase of fixed assets, the development and purchase of intangible assets, and the preparation period are allowed to be deducted. Including the interest expenses of mutual borrowing between taxpayers. The deduction standard of interest expenses shall be implemented in accordance with the provisions of paragraph 2 (1) of Article 6 of the Regulations.
article 11
the taxable wages mentioned in article 6, paragraph 2 (2) of the regulations refer to the wage standards that are allowed to be deducted when calculating taxable income. Including basic wages, floating wages, various subsidies, allowances and bonuses paid by enterprises to employees in various forms.
article 12
the public welfare and relief donations mentioned in item (4) of paragraph 2 of article 6 of the regulations refer to the donations made 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. The taxpayer's donation directly to the donee is not allowed to be deducted.
The social organizations mentioned in the preceding paragraph include China Youth Development Foundation, Hope Project Foundation, Soong Ching Ling Foundation, Disaster Reduction Committee, China Red Cross Society, China Disabled Persons' Federation, National Foundation for the Aged, Old District Promotion Association and other non-profit public welfare organizations established with the approval of civil affairs departments.
article 13
the items deducted according to laws, administrative regulations and relevant state tax regulations mentioned in the third paragraph of article 6 of the regulations refer to the relevant tax deduction items stipulated in the laws formulated by the national people's congress and its standing Committee, the administrative regulations issued by the State Council, the relevant tax regulations of the Ministry of finance and the provisions of State Taxation Administration of The People's Republic of China on tax adjustment.
article 14
the business entertainment expenses related to production and operation paid by taxpayers in accordance with the provisions of the Ministry of finance shall be deducted upon approval by the taxpayers who provide accurate records or documents.
Article 15
All kinds of insurance funds and co-ordination funds handed in by taxpayers according to the relevant provisions of the state, including employee pension funds and unemployment insurance funds, shall be deducted within the prescribed proportion after being audited by the tax authorities.
article 16 taxpayers who participate in property insurance and transportation insurance are allowed to deduct the insurance fees paid in accordance with regulations. The non-indemnity preferential treatment given to taxpayers by insurance companies shall be included in the taxable income of the current year.
The statutory personal safety insurance premiums paid by taxpayers for employees of special types of work according to state regulations are allowed to be deducted when calculating taxable income.
article 17 the deduction of rental fees paid by taxpayers for renting fixed assets according to the needs of production and business operations shall be handled according to the following provisions:
(1) the rental fees incurred by renting fixed assets by way of operating lease may be deducted according to the facts.
(2) The lease fees incurred in financial leasing shall not be deducted directly. The handling fee paid by the lessee and the interest paid after the installation and delivery can be deducted directly at the time of payment.
Article 18 provision for doubtful debts and commodity discount reserve drawn by taxpayers according to the provisions of the Ministry of Finance are allowed to be deducted when calculating taxable income.
article 19 the bad debt losses incurred by taxpayers who do not establish provision for doubtful debts shall be deducted according to the actual amount incurred in the current period after being reported to the competent tax authorities for approval.
article 2 the receivables that taxpayers have treated as expenses, losses or bad debts shall be included in the taxable income of the recovery year when they are recovered in whole or in part in the following years.
article 21 the interest income of taxpayers purchasing government bonds shall not be included in the taxable income.
article 22 expenses incurred by taxpayers in transferring various types of fixed assets are allowed to be deducted.
article 23 the taxpayer's net loss of fixed assets and current assets due to inventory loss or damage in the current period shall be allowed to deduct the inventory data provided by the taxpayer after being audited by the competent tax authorities.
article 24 when a taxpayer deposits, borrows, or changes in current accounts settled in foreign currencies during the production and business operations, the exchange gains and losses caused by the exchange rate changes converted into the bookkeeping base currency shall be included in the current income or deducted in the current period.
article 25 the management fees paid by taxpayers to the head office in accordance with regulations related to the production and operation of the enterprise must provide the supporting documents such as the collection scope, quota, distribution basis and method of the management fees issued by the head office, which can be deducted after being audited by the competent tax authorities.
article 26 the depreciation of taxpayers' fixed assets and the deduction of amortization of intangible assets and deferred assets shall be implemented in accordance with the relevant provisions of chapter iii of these rules.
the capital expenditure mentioned in item (1) of article 7 of the regulations refers to the expenditure of taxpayers on purchasing and constructing fixed assets and investing abroad.
the expenditure on the transfer and development of intangible assets mentioned in item (2) of article 7 of the regulations refers to the expenses incurred by taxpayers in purchasing or developing intangible assets on their own, which cannot be directly deducted. The part of intangible assets development expenditure that does not form assets is allowed to be deducted.
the fines for illegal business operations and the losses of confiscated property mentioned in item (3) of article 7 of the regulations refer to the fines imposed by the relevant departments and the losses of confiscated property by taxpayers in violation of national laws, regulations and rules in their production and business operations.
the late fees, fines and penalties mentioned in item (4) of article 7 of the regulations refer to the late fees, fines imposed by taxpayers in violation of tax laws and regulations, as well as various fines except the fines for illegal business operations mentioned in the preceding paragraph.
the part with compensation for the losses caused by natural disasters or accidents mentioned in item (5) of article 7 of the regulations refers to the compensation paid by the insurance company for the natural disasters or accidents suffered by taxpayers after taking out property insurance.
The public welfare and relief donations and non-public welfare and relief donations mentioned in Item (6) of Article 7 of the Regulations refer to donations beyond the standards and scope stipulated in Item (4) of Paragraph 2 of Article 6 of the Regulations and Article 12 of these Rules.
the various sponsorship expenditures mentioned in item (7) of article 7 of the regulations refer to various non-advertising sponsorship expenditures.
other expenses unrelated to income mentioned in item (8) of article 7 of the regulations refer to expenses unrelated to income of the enterprise except the above-mentioned expenses.
the time limit for making up losses as stipulated in article 11 of article 28 of the regulations refers to the taxpayer's loss in a certain tax year, which is allowed to be made up by taxable income in subsequent years; One year to make up for the shortage, you can continue to make up for it year by year; The maximum compensation period shall not exceed five years, and whether it is profit or loss within five years, it shall be calculated as the actual compensation period. Chapter iii
tax treatment of assets
article 29 taxpayers' fixed assets refer to houses, buildings, machines, machinery, means of transport and other equipment, appliances and tools related to production and business operations with a service life of more than one year. Articles that do not belong to the main equipment for production and operation, with a unit value of more than 2, yuan and a service life of more than two years, shall also be regarded as fixed assets.
as low-value consumables, tools and appliances that are not used as fixed assets management can be deducted at one time or by stages.
intangible assets refer to assets that taxpayers have used for a long time but have no physical form, including patents, trademarks, copyrights, land use rights, non-patented technologies and goodwill.
deferred assets refer to various expenses that cannot be fully included in the current year's profit and loss, but should be amortized in subsequent years, including start-up expenses, improvement expenses of leased fixed assets, etc.
Current assets refer to assets that can be realized or used within one year or a business cycle exceeding one year, including cash and various deposits, inventories, receivables and prepayments.
Article 3 The valuation of fixed assets shall be handled according to the following principles:
(1) The completed fixed assets delivered by the construction unit shall be valued according to the value determined in the inventory of property delivered by the construction unit.
(2) self-made and self-built fixed assets shall be priced at the actual cost when they are completed and used.
(3) The purchased fixed assets shall be valued according to the purchase price plus the packaging fees, transportation and miscellaneous fees, installation fees and taxes paid. The equipment imported from abroad shall be valued according to the purchase price of the equipment plus the import taxes, domestic transportation and miscellaneous fees, installation fees and other expenses.
(4) The fixed assets leased by means of financial leasing shall be valued according to the price determined in the lease agreement or contract plus transportation fees, en route insurance fees, installation and commissioning fees, interest expenses and exchange gains and losses incurred before putting into use.
(5) The fixed assets accepted as gifts shall be determined according to the amount listed in the invoice plus the transportation fee, insurance fee, installation and debugging fee borne by the enterprise; If there is no attached invoice, it shall be determined according to the market price of similar equipment.
(6) Fixed assets with surplus are priced according to the replacement full value of similar fixed assets.
(7) The fixed assets to be invested shall be determined at the reasonable price determined in the contract or agreement or the price confirmed by evaluation according to the depreciation degree of the assets.
(8) if the original fixed assets are rebuilt and expanded, the balance shall be determined according to the original price of the fixed assets, plus the expenses incurred in the reconstruction and expansion, minus the income from the fixed assets' price change during the reconstruction and expansion.
Article 31 Depreciation of fixed assets shall be handled according to the following provisions:
(1) Depreciation shall be withdrawn for the following fixed assets:
1. Houses and buildings;
2. Machines and equipment, transport vehicles, appliances and tools in use;
3. seasonally stop using and overhaul the stopped machinery and equipment;
4. Fixed assets leased by way of operating lease;
5. Fixed assets leased by means of financial leasing;
6. Other fixed assets that should be depreciated as stipulated by the Ministry of Finance.
(2) The following fixed assets shall not be depreciated:
1. Land;
2. Unused, unnecessary and sealed fixed assets outside houses and buildings;
3. Fixed assets leased by way of operating lease;
4. Fixed assets that have been fully depreciated and continue to be used;
5. Withdraw the fixed assets of maintenance fee according to regulations;
6. Fixed assets that have been charged at one time in the cost;
7. Fixed assets of bankrupt and closed enterprises;
8. Other fixed assets that are not allowed to be depreciated as stipulated by the Ministry of Finance.
fixed assets scrapped in advance shall not be depreciated.
(III) Basis and method of depreciation
1. Taxpayers' fixed assets shall be depreciated from the month following the month in which they are put into use; Depreciation of fixed assets that have ceased to be used shall be stopped from the month following the month of cessation of use.
2. Before calculating the depreciation of fixed assets, the residual value shall be estimated and deducted from the original price of fixed assets, and the proportion of residual value shall be within 5% of the original price, which shall be determined by the enterprise itself; Due to special circumstances, if it is necessary to adjust the proportion of residual value, it shall be reported to the competent tax authorities for the record.
3. the depreciation method and depreciation period of fixed assets shall be implemented in accordance with relevant state regulations.
Article 32 Intangible assets shall be priced according to the actual cost at the time of acquisition, and shall be determined separately:
(1) Intangible assets invested by investors as capital or cooperation conditions shall be priced according to the amount confirmed by evaluation or agreed in contracts and agreements.
(2) The purchased intangible assets shall be valued according to the actual price paid.
(3) Intangible assets that are developed by themselves and applied for according to law shall be subject to the relevant laws and regulations.