In order to thoroughly implement the Provisional Regulations of People's Republic of China (PRC) Municipality on Enterprise Income Tax and the Law of People's Republic of China (PRC) Municipality on Tax Collection and Management, further standardize the management of enterprise income tax base, and formulate the items and standards for pre-tax deduction of enterprise income tax.

Pre-tax deduction of enterprise income tax (hereinafter referred to as deduction) refers to the income-related costs, expenses and losses obtained by taxpayers when calculating taxable income.

If the taxpayer's financial accounting treatment is inconsistent with the tax provisions, it shall be adjusted according to the tax provisions, and if it is within the scope of the tax provisions, deduction is allowed. If the tax provisions are not clear and the financial accounting system has clear provisions, the accounting standards for enterprises, the general rules for enterprise finance and the financial accounting system for different industries (hereinafter referred to as the "two provisions" and the financial accounting system for different industries) promulgated by the Ministry of Finance shall be implemented temporarily, and deduction is allowed. Where there are no provisions in the tax and financial accounting systems, the local taxation bureau shall stipulate the deduction items and standards.

I. Deduction of inventory cost

Inventory refers to all kinds of tangible assets stored by taxpayers for sale or consumption in the process of production and operation. Including raw materials, fuels, packaging materials, low-value consumables, entrusted processing materials, products in process, finished products and commodities.

Under the principle of accrual basis, taxpayers can calculate the inventory cost of resale products according to the "two regulations" and the industry financial accounting system, and allow deduction.

Second, the deduction of taxable wages.

Taxable wage refers to the wage standard that is allowed to be deducted when calculating taxable income. Specifically, it includes basic salary, floating salary, various subsidies, allowances and bonuses paid by enterprises to employees in various forms.

(1) For taxpayers who are approved to implement the method of linking work efficiency, if the growth rate of total wages is lower than the growth rate of economic benefits and the average wage of employees is lower than the growth rate of labor productivity, they will be deducted according to the actual conditions.

When the wage and welfare indicators linked to the taxpayer's work efficiency need to be adjusted due to the influence of national policies, after the adjustment items are determined by the provincial local taxation bureau at the end of the year, all localities can calculate the taxable wage deduction of "two below" according to the adjusted welfare indicators.

(II) Taxpayers who fail to implement work efficiency linkage shall be deducted according to the standard set by the municipal government if their taxable wages are within the monthly average 550 yuan, and those higher than the monthly average 550 yuan shall be deducted according to the 550 yuan taxable wages standard.

(three) the deduction of the commission salary extracted by the taxpayer in the catering service industry in accordance with the provisions of the state is allowed.

3. Deduction of depreciation of fixed assets

The depreciation expenses of fixed assets extracted by taxpayers in accordance with the scope stipulated in the Provisional Regulations on Enterprise Income Tax and its detailed rules for implementation and the depreciation methods and depreciation years stipulated in the "two detailed rules" and the industry financial accounting system are allowed to be deducted. Under special circumstances, according to the following provisions:

(a) accelerated depreciation of fixed assets shall be deducted according to the following provisions

1. Taxpayers conduct pilot tests to verify and supplement relevant data, determine and improve technical specifications or solve key technologies for industrialized and commercialized scale production. With the approval of the competent tax authorities, the depreciation period of pilot equipment can be accelerated by 30-50% on the basis of state regulations.

2. Electronic manufacturing enterprises, shipbuilding enterprises, machinery enterprises, aircraft manufacturing enterprises, automobile manufacturing enterprises, chemical manufacturing enterprises and pharmaceutical manufacturing enterprises that have an important position in the national economy and have made rapid technological progress can adopt the double declining balance method or the sum of years method for their machinery and equipment.

3. If the taxpayer needs to shorten the depreciation period due to special reasons, the accelerated depreciation amount is allowed to be deducted with the approval of the provincial local taxation bureau on the premise of ensuring that the paid tax amount is not lower than the previous year, but the depreciation period shall not be shorter than the following provisions:

(1) Building for 20 years;

(2) Trains, ships, machinery and other production equipment 10 year;

(3) Electronic equipment and means of transportation other than trains and ships, as well as appliances, tools and furniture related to production and operation, are five years.

(2) The depreciation expenses of fixed assets (excluding land) that are revalued and added by the state and extracted according to regulations are allowed to be deducted.

(three) the mobile phone purchased by taxpayers, where there are control procedures, can be managed and depreciated according to fixed assets, allowing deduction.

Four, the deduction of fixed assets rental fees

Fixed assets leased by taxpayers in the form of financial leasing shall be charged in depreciation expense and shall not be deducted directly. The handling fee paid by the lessee and the interest paid after installation and delivery can be deducted directly at the time of payment.

Verb (abbreviation of verb) Deduction of fixed assets transfer fee

The expenses incurred in the transfer of fixed assets refer to the new expenses such as disassembly, relocation and arrangement when taxpayers transfer or sell fixed assets.

Expenses incurred by taxpayers in transferring fixed assets are allowed to be deducted.

Six, the deduction of fixed assets improvement expenditure

The expenditure on improvement of fixed assets refers to the net expenditure in the process of improving the quality and function of fixed assets, that is, the difference between all expenditures and the income of fixed assets in the process of reconstruction and expansion. The following two situations should be deducted from the fixed assets improvement expenditure.

(a) the taxpayer's expenditure on the improvement of fixed assets should be regarded as capital expenditure, and the increase and depreciation of the original value of fixed assets are allowed to be deducted.

(2) Taxpayer's expenditure on the improvement of fixed assets rented in is accounted for in the subject of "shaved assets", and it is written off according to the principle that the lease period or effective use period of the improvement project is short, and deduction is allowed.

Seven. Deduction of amortization of intangible assets

Intangible assets refer to assets that taxpayers use for a long time without physical form. Including patented technology, non-patented technology, trademark right, copyright, land use right and goodwill.

(1) When taxpayers acquire intangible assets, they shall be priced according to the actual cost.

1. Intangible assets invested by investors as capital or cooperation conditions shall be valued according to the amount confirmed by evaluation or agreed in the contract agreement;

2, the purchase of intangible assets, according to the actual price paid;

3. Intangible assets developed by themselves and applied for according to law shall be priced according to the actual expenditure in the development process;

4. The donated intangible assets shall be priced according to the amount listed in the invoice or the market price of similar intangible assets;

5. Except for business combination, goodwill should not be recorded at a fixed price.

(2) Intangible assets should be amortized by the straight-line method and allowed to be deducted within the prescribed time limit:

1. If the laws, contracts or enterprise application respectively stipulate the legal validity period and the benefit period, it shall be determined according to the principle of shorter legal validity period and benefit period stipulated in the contract or application.

2. If the law does not stipulate the effective period, it shall be determined according to the benefit period stipulated in the contract or enterprise application. If the validity period or benefit period is not specified in the law, contract or enterprise application, it shall be determined according to the time limit of not less than 10 year.

3. Computer software purchased separately is managed as intangible assets and amortized according to the validity period stipulated by law or the benefit period stipulated in the contract; If the validity period or benefit period is not specified in the law or contract, it will be amortized evenly within 5 years.

Eight. Deduction of deferred assets

Deferred assets refer to the expenses incurred by an enterprise that cannot be fully included in the current year's profit and loss, but should be amortized in future years. Including start-up expenses, major repairs of fixed assets and other expenses, the amortization period is 1 year.

(1) Deduct the organization fee.

Organization expenses refer to the expenses incurred by an enterprise during the preparation period. The preparation period refers to the expenses from the date when the enterprise is approved for preparation to the date when the enterprise starts production and operation (including trial production and trial operation). Including staff salaries, office expenses, travel expenses, training fees, printing fees, registration fees, and summary gains and losses and interest expenses that are not included in the cost of fixed assets.

Organization expenses shall be stopped when production and operation are started and business income is obtained, and amortization shall be started at the same time. Management expenses shall be equally shared by stages within a period of not less than 5 years, and deduction is allowed.

(2) Deduction of major repair cost of fixed assets. Expenditures for major repairs of fixed assets shall be amortized evenly during the major repairs and allowed to be deducted.

(3) Deduction of other prepaid expenses. Other expenses to be amortized are amortized evenly by stages according to the benefit period of expense items, and deduction is allowed.

Nine, simple construction fee deduction

The simple construction fee is within the standard of 200 yuan (including 200 yuan) per square meter, and it is allowed to be deducted according to the facts.

Ten, mine maintenance fee deduction

Mine maintenance fees included in the cost are allowed to be deducted. The specific criteria are:

(1) metal mine:

1, nonferrous metal ore:

Manganese ore per ton of 9 yuan

5 yuan per ton of magnesium ore

Chromium ore per ton of 5 yuan

Vein gold ore per ton 9 yuan

0.3 yuan per ton of placer gold mine

Other non-ferrous mines have a ton of 8 yuan, open pit mines have a ton of 7.2 yuan and placer mines have a ton of 3 yuan.

2, ferrous metal ore:

6 yuan per ton of iron ore

(2) Non-metallic minerals:

7 yuan per ton of clay ore.

Fluorite per ton of 7 yuan

Limestone per ton of 2 yuan

Dolomite per ton of 5 yuan

Silica per ton of 5 yuan

Pyrite, boron, phosphorus and alum per ton of 7 yuan.

Yushan Stone Mine per ton 1.5 yuan

Asbestos, gypsum, graphite, talc ore per ton of 5 yuan.

Other nonmetallic minerals per ton of 5 yuan.

(3) per ton of coal 10 yuan

XI。 Deduction of insurance premium

Taxpayers participating in property insurance and transportation insurance are allowed to deduct the insurance premiums paid according to regulations.

The statutory personal safety insurance premiums paid by taxpayers for special types of work in accordance with state regulations are allowed to be deducted.

Twelve. Deduction of travel expenses

Taxpayers who implement the lump-sum method for travel expenses are allowed to deduct the travel expenses within the lump-sum standard after the lump-sum method for travel expenses is approved by the competent tax authorities.

If the taxpayer fails to formulate the method of lump-sum travel expenses, it shall be deducted according to the facts with legal bills.

Thirteen. Deduction of labor protection fee

The labor insurance expenses incurred by taxpayers in purchasing labor insurance articles in accordance with the Liaoning Provincial Labor Bureau, the Finance Department and the Taxation Bureau's "Liaoning Province Staff Personal Labor Protection Articles Distribution Standard" (Liao Lao (1990) No.79) are allowed to be deducted. Among them, the annual per capita expenditure on labor protection clothing is insufficient 150 yuan, which is allowed to be deducted. Labor insurance articles for special types of work must be purchased in labor insurance stores and deducted according to the facts.

Fourteen, heating fee deduction

The heating fee paid directly by the taxpayer to the heating department shall be deducted according to the standards set by the local government. The winter coal subsidy paid by the taxpayer to the employees of this enterprise who have no heating equipment shall be deducted according to the facts within the annual standard of 150 yuan.

Fifteen, heatstroke prevention and cooling fee deduction

The expenses for heatstroke prevention and cooling paid by the taxpayer to the employees of this unit shall be deducted according to the facts within the annual standard of 180 yuan.

Sixteen, new products, new technologies, new technology development fee deduction

New products, technologies and processes developed by taxpayers must be incorporated into various technical planning projects formulated by the economic and trade commission or the science and technology commission at or above the municipal level according to industrial policies or macro-development plans.

New products, new technologies and new processes are divided into three levels: national, provincial and municipal.

(1) Taxpayers' expenses for research and development of new products, new technologies and new processes, including new product design fees, process design fees, equipment debugging fees, raw materials and semi-finished products test fees, technical books and materials fees, intermediate test fees not included in the national plan, salaries of research institutions, depreciation of research equipment, other expenses related to trial production of new products and technical research, and expenses entrusted to other units for scientific research and trial production, are included in management expenses and allowed to be deducted. If the project of new products, new technologies and new processes of the enterprise in that year is funded by the state, the deduction of this expense shall be the balance of the total actual expenditure after deducting the appropriation.

(2) The expenses incurred by profit-making enterprises in researching and developing new products, new technologies and new processes increased by more than 65,438+00% (including 65,438+00%) compared with the actual amount incurred in the previous year. Plus the expenses actually incurred in the current year, after being examined and approved by the competent tax authorities at the end of the year, 50% of the actual amount can be directly deducted from the taxable income of the current year, and the increase rate has not reached 10%.

The research and development expenses incurred by loss-making enterprises can only be charged according to regulations, and the method of deducting taxable income in a certain proportion is not implemented.

(3) If the research and development expenses of profit-making enterprises increase by more than 65,438+00% over the previous year, it shall be calculated as 50% of the actual amount, and if it is greater than the taxable income of the enterprise in that year, the portion that does not exceed the taxable income may be deducted; The excess will not be deducted in the current year or in subsequent years.

(4) The key equipment and testing instruments purchased by taxpayers for trial production to develop new technologies and new products, whose single unit value is less than 654.38+10,000 yuan, can be amortized at one time or in installments and included in the management expenses, and allowed to be deducted. Those that meet the standard of fixed assets should be managed separately, and depreciation should not be extracted.

Seventeen, deduct the children's school expenses.

It is allowed to deduct the salaries, bonuses, school office supplies, teaching supplies, travel expenses, rent, maintenance fees and utilities actually paid by taxpayers to employees and their children's schools.

Eighteen, trade union funds, employee welfare funds, employee education funds deduction.

The taxpayer's union funds, employee welfare funds and employee education funds are deducted according to the allowable deductions of 2%, 14% and 15% of the total taxable wages respectively.

Temporary workers recruited by seasonal production enterprises, who work for more than one production and operation cycle and have a labor contract issued by the labor department, may refer to the above provisions.

Nineteen, deduct the employee pension insurance fund and unemployment insurance fund.

Employees' pension insurance funds and unemployment insurance funds drawn by taxpayers in accordance with relevant state regulations are allowed to be deducted.

Twenty, deduct the funeral subsidy for the death of employees.

Workers died of illness or non-work-related death, and their funeral expenses were paid according to the average monthly salary of employees in each city for 3 months; One-time relief for immediate family members shall be paid according to the average monthly salary of employees in each city in that year 10 month; Regular relief funds for supporting immediate family members are paid according to the standard of living allowance for employees. Children are supported until 18 years old, and unemployed parents are supported until death.

The above expenses actually paid by taxpayers within the standard are allowed to be deducted.

Twenty-one, deduction of business entertainment expenses

Taxpayers' business entertainment expenses related to production and operation shall be deducted within the following limits:

The annual operating income is within150,000 yuan (including150,000 yuan) and does not exceed 5 ‰ of the annual operating income; More than 6.5438+0.5 million yuan, but less than 50 million yuan (including 50 million yuan), not more than 3 ‰ of this part; More than 50 million yuan, but less than 65.438+0 billion yuan (including 65.438+0 billion yuan), not more than 2 ‰ of this part of the operating income; The part exceeding 1 100 million yuan shall not exceed 1‰ of this part.

Operating income includes main business income and other business income. Among them, industrial enterprises calculate the deduction on the basis of net sales, that is, the income after deducting sales discounts and sales discounts.

Twenty-two, the deduction of litigation costs

The litigation expenses of the people's courts paid by taxpayers in accordance with the Measures for Litigation Expenses of the People's Courts promulgated by the Supreme People's Court are allowed to be deducted.

Twenty-three, deduction of housing subsidies

The housing subsidies and housing difficulties subsidies paid by taxpayers to employees according to regulations shall be charged in the housing working capital. The housing accumulation fund paid by taxpayers (5% of the total wages of employees) is charged in the housing turnover fund, and the insufficient part can be deducted before tax after being audited by the competent tax authorities. The housing provident fund paid by taxpayers without housing working capital is deducted according to the facts.

Twenty-four, deduction of asset losses

Taxpayers' assets are damaged or lost due to various irresistible reasons in the process of use and storage, and are allowed to be deducted with the approval of the tax authorities:

(1) Loss of fixed assets. Including operating expenses, non-operating expenses, construction in progress and the loss of fixed assets leased by financing.

(2) Loss of current assets. Including inventory (including VAT input tax transferred to be processed due to material damage), cash, other monetary funds, accounts receivable and prepayments, long-term investments, short-term investments and other losses. Among them, the loss of bad debts and the loss of commodity price reduction shall be handled according to the following provisions:

1. Bad debt loss refers to the accounts receivable that cannot be recovered after the debtor goes bankrupt or dies. Or accounts receivable that cannot be recovered due to the debtor's non-performance of debt repayment obligations for more than three years. If the taxpayer withdraws the bad debt reserve according to the regulations (3‰-5‰ of the balance of accounts receivable of industrial and commercial enterprises at the end of the year, and less than 3‰ of the balance of accounts receivable of other industries at the end of the year), it will be deducted according to the amount of bad debt reserve accrued for management fees at the end of the year. The part of the taxpayer's bad debt loss in the current year that exceeds the bad debt reserve is allowed to be deducted with the approval of the tax authorities; If the taxpayer fails to establish a bad debt reserve, the bad debt losses that have occurred shall be reported to the tax authorities for examination and approval, and deducted at one time or by stages according to the actual amount of the current period.

2. Commodity discount reserve refers to the reserve used by commercial enterprises to make up for the loss of commodity discount according to regulations. Taxpayers can prepay the commodity price reduction reserve on a monthly basis, and at the end of the year, it will be settled at 3-5‰ of the balance of inventory goods, which will be included in the cost of goods sold in the current period and allowed to be deducted.

Losses caused by taxpayers' failure to go through the examination and approval procedures, unexplained asset losses or personal dereliction of duty are not allowed to be deducted.

Twenty-five, compensation and penalty deduction

Taxpayers are allowed to deduct the economic compensation actually paid to employees according to the standards stipulated in the Measures for Economic Compensation for Violation and Termination of Labor Contracts (No.481994) issued by the Ministry of Labor.

Twenty-six, tax deduction

It is allowed to deduct the consumption tax, business tax, urban maintenance and construction tax, resource tax, land value-added tax and education surcharge paid by taxpayers according to tax regulations.

Twenty-seven, deduction of management fees

Management fee refers to the management fee related to the production and operation of the enterprise paid by the taxpayer to the head office or the competent department according to the regulations.

(a) the management fees paid by taxpayers to the head office are allowed to be deducted according to the following standards after being examined and approved by the tax authorities.

1, which is paid according to a certain proportion of sales revenue upon approval. Among them, industrial enterprises can withdraw within 1% of commodity sales revenue; Commodity circulation enterprises can withdraw within 0.5% of the net income of commodity sales; Tourism and catering service enterprises can extract within 0.5% of their operating income; Repair and repair enterprises can withdraw within 2% of their operating income.

2. Approve and determine a reasonable payment amount.

(2) The management fee paid by the taxpayer to the competent department within 1% of its sales income or a certain amount with the approval of the tax authorities may be deducted.

The management fees unpaid by taxpayers during the annual settlement of enterprise income tax shall not be deducted.

Twenty-eight, the deduction of industrial and commercial management fees

The industrial and commercial management fees paid by private enterprises according to the unified regulations of the administrative department for industry and commerce are allowed to be deducted.

Twenty-nine, the disabled employment security fund deduction

Taxpayers shall arrange employment for the disabled at a rate not less than 1.7% of the total number of employees (including permanent workers, contract workers and temporary workers) at the end of last year, and arrange 1 blind or severely disabled people for two disabled people.

If the taxpayer fails to reach the proportion of the disabled, the difference shall be paid in accordance with the standard of not less than 50% of the average wage of employees in the last year in the city where the taxpayer is located, and the deduction is allowed.

Thirty, river maintenance fee deduction

The river maintenance fee paid by taxpayers according to the proportion of 1‰ of sales or operating income is allowed to be deducted.

Thirty-one, expenses and fund deduction

Various funds, funds and surcharges paid by taxpayers, with the approval of the State Council or the Ministry of Finance, are included in the financial accounts of extra-budgetary funds at the same level according to regulations, and two lines of revenue and expenditure are managed, allowing deduction.

Fees paid by taxpayers, which are approved by the State Council or the Ministry of Finance in conjunction with relevant departments and provincial people's governments, are included in the financial accounts of the fiscal budget or extra-budgetary funds at the same level according to regulations, and are managed by two lines of revenue and expenditure, which are allowed to be deducted.

In addition to the above provisions, other funds, funds, surcharges and fees inside and outside the price shall not be deducted.

Thirty-two, deduction of loan interest

Loan interest is deducted according to the following different situations:

(1) The interest expenses of taxpayers borrowing from financial institutions shall be deducted according to the interest rate stipulated by the bank.

(two) the interest expenses incurred by taxpayers borrowing from non-financial institutions shall be deducted according to the interest rate of similar loans calculated by the People's Bank of China at the same period.

(3) Taxpayers are allowed to deduct overdue loans with penalty interest.

(4) The interest expenses raised by taxpayers from employees shall be deducted according to the annual interest rate 10%. If the bank loan interest rate is higher than 10% in the same period, it will be deducted according to the loan interest rate calculated by the People's Bank of China in the same period.

Thirty-three, deduction of summary profit and loss

Exchange gains and losses refer to the difference between foreign currency deposits, foreign currency cash, foreign currency claims, debts and other foreign currency accounts converted into functional currency due to different accounting time and exchange rate. Exchange gains and losses incurred by taxpayers should be included in the current profits and losses or the value of related assets according to different circumstances. Net exchange losses are allowed to be deducted.

(1) Exchange gains and losses during the preparation period, if they are net losses, shall be included in the organization expenses. If it is net income, it will be transferred to taxable income within 5 years according to the straight-line method from the next month of the production and operation month of the enterprise.

(2) Exchange gains and losses in the process of production and operation shall be included in the taxable income of the current period in accordance with the provisions of the tax law.

(3) Exchange gains and losses during the liquidation period shall be included in the taxable income during the liquidation period according to the provisions of the tax law.

(4) Exchange gains and losses related to the purchase and construction of fixed assets can be directly included in the cost of assets when the assets have not been delivered or have been delivered but the final accounts have not been completed.

Thirty-four, the deduction of capital occupation fee

The capital occupation fee paid by the taxpayer is the investment relationship between the asset owner and the taxpayer and shall not be deducted before income tax; If it is a loan relationship, the annual interest rate is lower than 10%, and deduction is allowed.

Thirty-five, deduct advertising fees

The advertising fees actually paid by taxpayers to promote their own products and business projects are allowed to be deducted if they have obtained special invoices for advertising supervised by the state tax authorities.

Thirty-six, sales contract fee deduction

Institutions and personnel specializing in sales in industrial enterprises with sound financial management and correct cost accounting implement "sales contract". After the lump sum scheme is approved by the tax authorities, the lump sum expenses are allowed to be deducted:

The cost of "sales contract" is generally controlled within 3% of the taxpayer's sales income in that year. If individual taxpayers need to increase the proportion of sales contracts, they can make appropriate adjustments after being approved by the Municipal Local Taxation Bureau.

"Sales contract" expenses include: salary, bonus, various allowances, overtime pay, travel expenses, telegraph and telephone charges, business meetings and other expenses related to sales business.

The taxable salary of the person who executes the "sales contract" shall not be deducted repeatedly.

Thirty-seven, foreign trade enterprises commission deduction

Commission is an integral part of the price and a kind of reward paid to the middleman. Commissions paid by foreign trade enterprises to foreign enterprises or individuals shall be paid in accordance with the commission rate and commission payment method stipulated in the contract. There are generally three ways to pay commission: explicit commission, implicit commission and accumulative commission.

The commission paid by the taxpayer can be deducted by the legal certificate issued by the payee within the amount not higher than 5% of the export transaction amount.

38. Deduction of quota fees for import and export commodities

Quota fee for import and export commodities refers to the bidding fee paid by taxpayers to the China Chamber of Commerce for Import and Export in the import and export business with quota restrictions. Quotas are divided into active quotas and passive quotas.

It is allowed to deduct the quota fee for import and export commodities paid by taxpayers at the price stipulated in the tender.

Thirty-nine, local income tax deduction

When investors refund the tax from the profits of foreign-invested enterprises, the local income tax paid by foreign-invested enterprises is calculated at 3% of the taxable income, and investors are allowed to deduct it.

Forty, deduction of donations

Donations made by taxpayers for public welfare and relief are allowed to be deducted within 3% of the annual taxable income. Donations for public welfare disaster relief refer to donations provided by taxpayers to public welfare undertakings such as education and civil affairs and areas and poverty-stricken areas suffering from natural disasters through non-profit social organizations and state organs in China. The so-called social organizations mainly refer to: China Youth Development Foundation, Hope Project Foundation, Soong Ching Ling Foundation, Disaster Reduction Committee, China Red Cross Society, China Disabled Persons' Federation and National Foundation for the Aged.

The amount of income increased by tax authorities in tax payment inspection shall not be used as the base for calculating public welfare and relief donations.

Donations made by taxpayers directly to recipients are not allowed to be deducted.

4 1. Items that cannot be deducted when calculating taxable income.

(1) Capital expenditure. Refers to the taxpayer's expenditure on the purchase and construction of fixed assets and foreign investment. Expenditure on foreign investment includes taxpayers' investment in other units in monetary funds, physical objects and unopened assets.

(2) Expenditure on intangible assets transfer and development. Refers to the expenses incurred by taxpayers who purchase or develop intangible assets by themselves and have formed intangible assets.

(3) Expenditure on administrative punishment

1, illegal business fines, confiscation of property losses. Refers to the taxpayer's production and operation in violation of national laws, regulations and rules, and the losses caused by fines and confiscation of property by the relevant departments.

2. Late fees, fines and penalties for various taxes. Refers to the late fees and fines imposed by tax authorities on taxpayers who violate tax laws and regulations, and the fines imposed by judicial departments on taxpayers.

3. Other administrative penalty fees

(four) natural disasters or accidents have compensation for losses. Refers to the compensation paid by the insurance company after the taxpayer participates in property insurance and suffers from natural disasters or accidents.

(five) public welfare and relief donations and non-public welfare and relief donations exceed the allowable deduction stipulated by the state. Refers to the part where the taxpayer exceeds the scope of public welfare and relief donations stipulated in the tax law and exceeds the annual taxable income by less than 3%.

(6) Various sponsorship fees. Refers to various non-advertising sponsorship expenditures.

(7) Loss of guarantee fees. Refers to the losses caused by the taxpayer providing guarantee for other units unrelated to the production and operation of the enterprise, and the taxpayer is responsible for the failure of the guaranteed party to perform the contract according to law.

(8) Various welfare expenditures. Refers to the cost of dormitory repair and life insurance.

(nine) other expenses unrelated to income. Refers to other expenses unrelated to the taxpayer's income except the above items.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.