What is the tax basis and method of enterprise income tax?

the so-called tax basis of enterprise income tax refers to the amount of income payable by enterprises in calculating enterprise income tax. Commonly used tax terms are expressed as taxable income. The tax basis of enterprise income tax directly determines the amount of enterprise income tax payable by enterprises. Therefore, it is particularly important to grasp the relevant policies and regulations for the final settlement and payment of enterprise income tax. Let's introduce a series of regulations on the basis of corporate income tax. I. Principles for Confirmation of Tax Basis of Enterprise Income Tax The taxable income of an enterprise is calculated on the accrual basis, which belongs to the income and expenses of the current period, regardless of whether the payment is received or not. Income and expenses that do not belong to the current period, even if the money has been received and paid in the current period, are not regarded as income and expenses of the current period. Except as otherwise provided by this Ordinance and the competent departments of finance and taxation of the State Council. II. Confirmation of Tax Basis of Resident Enterprises The total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and losses allowed to make up for previous years, is the taxable income. The income obtained by an enterprise from various sources in monetary and non-monetary forms is the total income. Including: (1) income from sales of goods; (2) income from providing labor services; (3) Income from transfer of property; (4) Income from equity investment such as dividends and bonuses; (5) Interest income; (6) rental income; (7) Royalty income; (8) Receiving donation income; (9) Other income. The term "loss" refers to the amount less than zero after deducting non-taxable income, tax-exempt income and various deductions from the total income of an enterprise in each tax year in accordance with the provisions of the Enterprise Income Tax Law and these Regulations. The monetary forms of income earned by enterprises include cash, deposits, accounts receivable, notes receivable, bond investment to be held to maturity and debt exemption. The non-monetary forms of income earned by enterprises include fixed assets, biological assets, intangible assets, equity investment, inventory, bond investment that is not ready to be held until maturity, labor services and related rights and interests. The income obtained by an enterprise in non-monetary form shall be determined according to its fair value. The fair value refers to the value determined according to the market price. The term "income from the sale of goods" refers to the income obtained by enterprises from the sale of commodities, products, raw materials, packaging materials, low-value consumables and other inventories. The term "income from providing labor services" refers to the income obtained by enterprises engaged in construction and installation, repair and replacement, transportation, warehousing and leasing, finance and insurance, post and telecommunications, consulting and brokerage, culture and sports, scientific research, technical services, education and training, catering and accommodation, agency, health care, community services, tourism, entertainment, processing and other labor service activities. The term "income from the transfer of property" refers to the income obtained by an enterprise from the transfer of fixed assets, biological assets, intangible assets, equity, creditor's rights and other property. The income from equity investment such as dividends and bonuses refers to the income obtained by an enterprise from the investee due to equity investment. Dividends, bonuses and other equity investment income, unless otherwise stipulated by the competent departments of finance and taxation of the State Council, shall be realized according to the date when the investee makes the profit distribution decision. The term "interest income" refers to the income obtained by an enterprise that provides funds to others for use but does not constitute an equity investment, or because others occupy the funds of the enterprise, including deposit interest, loan interest, bond interest, arrears interest and other income. Interest income, according to the date of interest payable by the debtor as agreed in the contract, confirms the realization of income. The term "rental income" refers to the income obtained by enterprises from providing the right to use fixed assets, packaging materials or other tangible assets. Rental income, according to the date agreed in the contract that the lessee should pay rent, confirm the realization of income. The term "royalty income" refers to the income obtained by enterprises from providing the right to use patents, non-patented technologies, trademarks, copyrights and other franchises. Royalty income, the realization of income shall be confirmed according to the date when the concessionaire pays royalties as agreed in the contract. The term "income from accepting donations" refers to monetary assets and non-monetary assets accepted by enterprises from other enterprises, organizations or individuals for free. Accept the donation income, and confirm the realization of the income according to the date when the donated assets are actually received. The term "other income" refers to other income obtained by the enterprise except the income specified in items (1) to (8) above, including the surplus income of the enterprise's assets, the overdue deposit income of the packaging materials, the accounts payable that can't be paid, the accounts receivable recovered after the treatment of bad debt losses, debt restructuring income, subsidy income, liquidated damages income, exchange gains, etc. III. Confirmation of Tax Basis for Non-resident Enterprises Where the enterprise income tax payable by non-resident enterprises is withheld at source, the taxable income shall be calculated in accordance with Article 19 of the Enterprise Income Tax Law. The implementing regulations of the Enterprise Law, that is, non-resident enterprises obtain the income specified in the third paragraph of Article 3 of this Law, and calculate their taxable income according to the following methods: (1) The income from equity investment such as dividends and bonuses and the income from interest, rent and royalties shall be the taxable income in full; (2) For the income from the transfer of property, the taxable income shall be the balance after deducting the net value of the property in full; (3) For other income, the taxable income shall be calculated by referring to the methods specified in the preceding two paragraphs. The term "full income" refers to the total price and extra-price expenses charged by non-resident enterprises to payers. The above income obtained by non-resident enterprises in the implementation regulations of the Enterprise Law shall not be deducted from other tax expenses other than the above provisions when calculating and collecting enterprise income tax. IV. Confirmation of tax basis for liquidation enterprises If an enterprise terminates its business activities in the middle of the year, it shall, within 6 days from the date of actual business termination, handle the final settlement and payment of enterprise income tax for the current period with the tax authorities. An enterprise shall, before going through the cancellation of registration, declare its liquidation income to the tax authorities and pay enterprise income tax according to law. The term "liquidation income" refers to the balance of the realizable value of all assets or the transaction price of an enterprise after deducting the net asset value, liquidation expenses and related taxes and fees. The remaining assets distributed by the investor enterprise from the liquidated enterprise, which is equivalent to the part that should be distributed from the accumulated undistributed profits and accumulated surplus reserves of the liquidated enterprise, shall be recognized as dividend income; The balance of the remaining assets after deducting the above dividends, which exceeds or is lower than the investment cost, shall be recognized as the income or loss from the transfer of investment assets. V. deduction of tax basis according to the provisions of the tax law, enterprises engaged in the following business projects can deduct the tax basis. 1. Deduction of enterprise's comprehensive utilization of resources The income obtained by an enterprise from comprehensive utilization of resources and production of products conforming to national industrial policies may be deducted when calculating taxable income. The term "reduced income" refers to the income obtained by an enterprise from producing products that are not restricted or prohibited by the state and meet the relevant national and industrial standards with the resources specified in the Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources as the main raw materials, and is included in the total income at a reduced rate of 9%. However, the proportion of the "raw materials" in all materials consumed in the production of products shall not be lower than the standard stipulated in the Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources. 2. Deduction of enterprise investment and entrepreneurship Venture capital enterprises engaged in venture capital that the state needs to support and encourage can deduct the taxable income according to a certain proportion of the investment. The so-called deduction of taxable income means that if a venture capital enterprise invests in unlisted small and medium-sized high-tech enterprises for more than 2 years by means of equity investment, it can deduct the taxable income of the venture capital enterprise in the year when its equity is held for 2 years. If the deduction is insufficient in the current year, it can be carried forward in subsequent tax years. VI. The standard currency for calculating enterprise income tax The enterprise income tax paid shall be calculated in accordance with the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China, with RMB as the standard currency. If the income of an enterprise is reflected in a currency other than RMB, it shall be converted into RMB for calculation and tax payment. If the income of an enterprise is calculated in a currency other than RMB, when the enterprise income tax is paid in advance, it shall be converted into RMB according to the central parity of RMB exchange rate on the last day of each month or quarter to calculate the taxable income. At the end of the year, those who have paid taxes in advance on a monthly or quarterly basis will not be recalculated, but only the unpaid enterprise income tax in the tax year will be converted into RMB according to the central parity of RMB exchange rate on the last day of the tax year to calculate the taxable income. If, after inspection and confirmation by the tax authorities, an enterprise undercharges or overcharges the income specified in the preceding paragraph, it shall convert the undercharged or overcharged income into RMB according to the central parity of RMB exchange rate on the last day of the previous month when the tax payment or refund is confirmed, and then calculate the tax payable or refunded.