Article 51 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that public welfare donation refers to the donation of enterprises to public welfare undertakings through public welfare social organizations or people's governments at or above the county level and their departments for the purposes of the Regulations of the Law on Donation of Public Welfare Undertakings of China. Article 53. It is clear that the public welfare donation expenditure incurred by an enterprise shall not exceed 12% of the total annual profit and shall be deducted. The total annual profit refers to the annual accounting profit calculated by an enterprise according to the rules of the unified national accounting system.
In practice, how can enterprises deduct public welfare donation expenditure before tax according to the rules of tax law? This paper summarizes the "Five Points" method, so that we can accurately understand and grasp it.
The donated units should be distinguished
1. The donated unit must be the people's government at or above the county level, its departments and directly affiliated institutions. If the donated unit is a township people's government or a subdistrict office, it can not be deducted before tax.
2. The public donation expenditure incurred to the public welfare social organizations must be the year in which the enterprise's income tax is remitted and paid, and the donated units are on the list jointly issued by the departments of finance, taxation and civil affairs. On the contrary, it can not be deducted before tax.
Obtain bills legally
Instead of using administrative institutions to settle bills for pre-tax deduction, the financial departments at or above the provincial level (including the provincial level) should provide public welfare donation bills printed and stamped with the seal of the donating unit, or the receipt couplet of the General Payment Letter of Non-tax Income stamped by the donating unit, as the legal deduction vouchers.
Donations should be shared over time
In practice, some enterprises have a large amount of one-off public welfare donations and a long time span, which should be allocated to the current out-of-business expenditure according to the criteria of power-responsibility system. For example, in January 2015, Company A donated 8 million yuan from bank deposits to the Municipal Mercy Association (on the list jointly issued by the Municipal Finance, Taxation and Civil Affairs Departments) in order to obtain the naming rights of the city sports parks invested by the government. According to the agreement of the contract, the term of naming right of Company A is five years, from January 1, 2015 to December 31, 2019. The recipient unit issued a special receipt for donation of 8 million yuan. In 2015, the amount of "out-of-business expenditure" should be assessed at 800_5 = 160 million yuan.
Direct donation needs to be adjusted
According to the government's poverty alleviation program, enterprises directly donate to poor villages, farmers, urban residents, rural elementary schools and students with special difficulties. Although this kind of behavior is public welfare, it does not conform to the requirements of public welfare donation under the tax law. Therefore, direct donation expenditure incurred by enterprises should be increased by taxation.
If the profit is not true, it must be recalculated
In practice, the enterprise first declares the enterprise income tax in advance according to the annual "profit statement" compiled by itself, and then delays the appointment of accounting firms to stop auditing the accounting statements. If the auditee's accounting negligence is found in the audit and the profit is not true, the accounting statements should be adjusted. When affirming the deduction limit of public welfare donation before tax, the calculation shall be based on the adjusted total profit.
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