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Detailed Rules for the Implementation of the Provisional Regulations of People's Republic of China (PRC) Municipality on Enterprise Income Tax

The chaebol word [1994] No.3

Chapter I General Principles

Article 1 These Detailed Rules are formulated in accordance with Article 19 of the Provisional Regulations of People's Republic of China (PRC) Municipality on Enterprise Income Tax (hereinafter referred to as the Regulations).

Article 2 The term "income from production and operation" as mentioned in Article 1 of the Regulations refers to the income from material production, transportation, commodity circulation, labor services and other profit-making undertakings confirmed by the financial department of the State Council.

Other income as mentioned in Article 1 of the Regulations refers to income from dividends, interest, rent, transfer of various assets, royalties and non-operating income.

Article 3 State-owned enterprises, collective enterprises, private enterprises, joint ventures and joint-stock enterprises mentioned in Items (1) to (5) of Article 2 of the Regulations refer to the above-mentioned enterprises registered in accordance with relevant state regulations.

Other organizations with production, business income and other income mentioned in Item 6 of Article 2 of the Regulations refer to institutions, social organizations and other organizations approved by relevant state departments and registered according to law.

Article 4 Enterprises or organizations with independent economic accounting mentioned in Article 2 of the Regulations refer to enterprises or organizations where taxpayers have the conditions to open settlement accounts in banks, independently set up account books, prepare financial and accounting statements and independently calculate profits and losses.

Article 5 The formula for calculating the tax payable mentioned in Article 3 of the Regulations is:

Taxable amount = taxable income × tax rate

Chapter II Calculation of Taxable Income

Article 6 The calculation method of taxable income mentioned in Articles 3 and 4 of the Regulations is as follows:

Taxable income = total income-deductible item amount

Article 7 The term "income from production and operation" as mentioned in Item (1) of Article 5 of the Regulations refers to the income obtained by taxpayers from their main business activities, including the income from commodity (product) sales, labor service income, operating income, project price settlement income, industrial operating income and other business income.

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 paid transfer of various types of property, 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 purchasing 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 income from royalties mentioned in Item (5) of Article 5 of the Regulations refers to the income obtained by taxpayers from providing or transferring patent rights, non-patented technologies, trademark rights, copyrights and other franchise rights.

The term "dividends and bonus income" as mentioned in Item (6) of Article 5 of the Regulations refers to the dividends and bonus income obtained by taxpayers from overseas investment.

The term "other income" as mentioned in Item (7) of Article 5 of the Regulations refers to income other than the above income, including fixed assets inventory income, fine income, accounts payable that cannot be paid due to creditors' reasons, inventory income of materials and cash, additional return 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 the direct costs and indirect costs incurred by taxpayers in producing and operating commodities and providing services.

(2) Expenses, that is, sales (operation) expenses, management expenses and financial expenses incurred by taxpayers in producing and dealing in commodities and providing 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. Education surcharge can be regarded as tax.

(4) Losses, that is, non-operating expenses incurred by taxpayers in the process of production and operation, operating losses and investment losses that have occurred and other losses.

If the taxpayer's financial accounting treatment is inconsistent with the tax provisions, it shall be adjusted in accordance with the tax provisions. The amount allowed to be deducted according to tax laws and regulations is allowed to be deducted.

Article 9 The financial institutions mentioned in Item (1) of Paragraph 2 of Article 6 of the Regulations refer to all kinds of banks, insurance companies and non-bank financial institutions approved by the People's Bank of China to engage in financial business.

Article 10 The interest expense mentioned in Item (1) of Paragraph 2 of Article 6 of the Regulations refers to the interest expense of various loans after the final accounts of the purchased fixed assets are put into production.

The loan interest expenses of financial institutions mentioned in Item (1) of Paragraph 2 of Article 6 of the Regulations include the loan interest expenses of insurance companies and non-bank financial institutions.

Taxpayers' interest expenses other than construction and purchase of fixed assets, development and purchase of intangible assets, and interest expenses incurred during the preparatory period are allowed to be deducted. Including the interest expenses of taxpayers borrowing from each other. The deduction standard of interest expenses shall be implemented in accordance with the provisions of Item (1) of Paragraph 2 of Article 6 of the Regulations.

Article 11 The taxable wages mentioned in Item (2) of Paragraph 2 of Article 6 of the Regulations refer to the wage standards that are allowed to be deducted when calculating the taxable income. Including basic salary, floating salary, various subsidies, allowances and bonuses paid by enterprises to employees in various forms.

Article 12 The term "public welfare and relief donations" as mentioned in Item (4) of Paragraph 2 of Article 6 of the Regulations refers 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. Donations made by taxpayers directly to recipients are 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 Ageing, Old District Promotion Association and other non-profit public welfare organizations approved by civil affairs departments.

Article 13 The items deducted according to laws, administrative regulations and relevant state tax provisions 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 promulgated 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, People's Republic of China (PRC) on Tax Adjustment.

Article 14 Business entertainment expenses incurred by taxpayers in accordance with the provisions of the Ministry of Finance related to production and operation may be deducted with the approval of taxpayers who provide accurate records or vouchers.

Fifteenth taxpayers in accordance with the relevant provisions of the state to pay all kinds of insurance funds and pooling funds, including employee pension insurance funds and unemployment insurance funds, after the audit by the tax authorities, deducted within the prescribed proportion.

Sixteenth taxpayers to participate in property insurance and transportation insurance, in accordance with the provisions of the insurance premium paid, allowed to deduct. 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 special types of work in accordance with 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 operation shall be handled in accordance with the following provisions:

(1) Lease fees incurred in renting fixed assets through operating lease can be deducted according to the facts.

(2) The lease expenses incurred in financial leasing 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.

Article 18 The bad debt reserve and commodity discount reserve drawn by taxpayers in accordance with the provisions of the Ministry of Finance are allowed to be deducted when calculating taxable income.

Article 19 Bad debt losses incurred by taxpayers who have not made provision for bad 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 20 Accounts receivable 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.

Twenty-second expenses incurred by taxpayers in transferring various fixed assets are allowed to be deducted.

Article 23 The net loss of fixed assets and current assets due to inventory loss or damage in the current period may be deducted from the inventory data provided by taxpayers after examination and approval by the competent tax authorities.

Article 24 When a taxpayer deposits, borrows or changes the current account in foreign currency in the process of production and operation, the exchange gains and losses arising from 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 Taxpayers who pay management fees related to the production and operation of enterprises to the head office in accordance with regulations shall provide supporting documents such as the scope, quota, distribution basis and method of management fees issued by the head office, which shall be allowed to be deducted after being audited by the competent tax authorities.

Article 26 Taxpayers' depreciation of fixed assets, amortization of intangible assets and deferred assets shall be deducted in accordance with the relevant provisions of Chapter III of these Detailed Rules.

Article 27 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 that cannot be directly deducted when taxpayers purchase or develop intangible assets themselves. The part of intangible assets development expenditure that does not form assets is allowed to be deducted.

The term "illegal business fines and losses from confiscation of property" as mentioned in Item (3) of Article 7 of the Regulations refers to the fines and losses from confiscation of property imposed by the relevant departments by taxpayers in violation of national laws, regulations and rules in production and operation.

The late fees and fines for various taxes mentioned in Item (4) of Article 7 of the Regulations refer to the late fees and fines imposed by taxpayers in violation of tax laws and regulations, as well as the fines other than the illegal business fines mentioned in the preceding paragraph.

The part of compensation for 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 natural disasters or accidents suffered by taxpayers after taking out property insurance.

The public welfare and disaster relief donations and non-public welfare and disaster 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 sponsorship expenses mentioned in Item (7) of Article 7 of the Regulations refer to the non-advertising sponsorship expenses.

Other expenditures unrelated to income mentioned in Item (8) of Article 7 of the Regulations refer to expenditures unrelated to enterprise income except the above expenditures.

Article 28 The time limit for making up losses as stipulated in Article 11 of the Regulations refers to the losses of taxpayers in a certain tax year, which are allowed to be made up by taxable income in subsequent years; Make up for the deficiency in one year, and you can continue to make up for it year by year; The compensation period shall not exceed five years at the longest, and whether it is profit or loss within five years, it shall be calculated according to the actual compensation period.

Chapter III Tax Treatment of Assets

Article 29 Taxpayers' fixed assets refer to houses, buildings, machinery, machinery, means of transport and other equipment, appliances and tools related to production and operation with a service life of more than one year. Items that do not belong to the main equipment of production and operation, with a unit value of more than 2,000 yuan and a service life of more than two years, should also be regarded as fixed assets.

Not as tools and appliances for fixed assets management, but as low-value consumables, they 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 expenses that cannot be fully included in the current year's profit and loss, but should be amortized in future years, including start-up expenses, rented fixed assets improvement expenses, etc.

Current assets refer to assets that can be realized or used within one year or a business cycle of more than one year, including cash and various deposits, inventories, receivables and prepayments.

Thirtieth fixed assets valuation, 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 list of properties delivered by the construction unit.

(two) self-made, self-built fixed assets, in the completion of the use of the actual cost of valuation.

(3) The purchased fixed assets shall be priced according to the purchase price plus packaging fees, transportation and miscellaneous fees, installation fees and taxes paid. Equipment imported from abroad shall be priced according to the purchase price of the equipment plus import tax, domestic transportation and miscellaneous fees, installation fees and other expenses.

(4) Fixed assets leased by means of financing lease shall be priced according to the price determined in the lease agreement or contract, plus transportation fees, insurance premiums on the way, installation and commissioning fees, interest expenses and exchange gains and losses before they are put into use.

(5) The donated fixed assets shall be determined according to the amount listed in the invoice plus the transportation fee, insurance fee and 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.

(six) the fixed assets with surplus are priced at the full replacement price of similar fixed assets.

(seven) the fixed assets that accept the investment shall be determined at the reasonable price determined by the contract or agreement or the price confirmed by the evaluation according to the depreciation degree of the assets.

(8) Where the original fixed assets are rebuilt or 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 incomings of the fixed assets incurred in the process of reconstruction and expansion.

Thirty-first depreciation of fixed assets, according to the following provisions:

(1) The following fixed assets shall be depreciated:

1. Houses and buildings;

2 machinery and equipment, transport vehicles, appliances and tools in use;

3. Seasonal outage and overhaul of mechanical equipment;

4. Fixed assets leased in the form 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.

(two) the following fixed assets shall not be depreciated:

1. Land;

2. Unused, unnecessary and sealed fixed assets outside buildings;

3. Fixed assets leased by way of operating lease;

4. Fixed assets that have been fully depreciated and continue to be used;

5 in accordance with the provisions of the extraction of fixed assets maintenance fees;

6. Fixed assets that have been included in the cost at one time;

7. The fixed assets of the bankrupt and closed enterprise;

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.

(3) Basis and method for extracting depreciation

1. The taxpayer's fixed assets shall be depreciated from the next month after they are put into use; Depreciation of fixed assets that have ceased to be used shall stop from the next month of the month of cessation of use.

2. Before calculating the depreciation of fixed assets, the residual value should be estimated and deducted from the original price of fixed assets. The proportion of residual value is less than 5% of the original price, which is determined by the enterprise itself; If it is really necessary to adjust the proportion of residual value due to special circumstances, 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 valued according to the actual cost at the time of acquisition and determined separately:

(1) Intangible assets invested by investors as capital or cooperation conditions shall be valued according to the amount confirmed by evaluation or agreed in contracts and agreements.

(2) The purchased intangible assets shall be priced according to the actually paid price.

(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) Intangible assets that receive donations shall be priced according to the amount listed in the invoice or the market price of similar intangible assets.

Article 33 Intangible assets shall be amortized by the straight-line method.

Intangible assets transferred or invested shall be amortized according to the principle of shorter legal validity period and benefit period stipulated in the contract or enterprise application; If the service life is not stipulated by law, it shall be amortized according to the benefit life applied by the contract or enterprise; The amortization period of intangible assets that are not stipulated in laws, contracts or enterprise applications or developed by themselves shall not be less than 65,438+00 years.

Article 34 The start-up expenses incurred by an enterprise during the preparation period shall be deducted by stages within a period of not less than five years from the next month of the month when it starts production and operation.

The term "preparation period" as mentioned in the preceding paragraph refers to the period from the date when the enterprise is approved for preparation to the date when it starts production and operation (including trial production and trial operation). Organization expenses refer to various expenses incurred by an enterprise during the preparation period, including personnel salaries, office expenses, training fees, travel expenses, printing fees, registration fees, exchange gains and losses, and interest not included in the cost of fixed assets and intangible assets.

Article 35 Taxpayers' inventories of commodities, materials, finished products and semi-finished products shall be calculated according to actual costs. The actual cost of taxpayer's inventory can be calculated by one of the first-in first-out method, last-in first-out method, weighted average method and moving average method. Once the valuation method is selected, it shall not be changed at will; If it is really necessary to change the valuation method, it shall be reported to the competent tax authorities for the record before the start of the next tax year.

Chapter IV Tax Preferences

Article 36 The ethnic autonomous areas mentioned in Item (1) of Article 8 of the Regulations refer to autonomous regions, autonomous prefectures and autonomous counties that exercise regional ethnic autonomy in accordance with the Law of People's Republic of China (PRC) on Regional Ethnic Autonomy.

Article 37 The people's governments of provinces and autonomous regions may, according to the actual conditions of ethnic autonomous areas, take care of and encourage enterprises in ethnic autonomous areas and implement regular tax reduction or exemption.

Article 38 The term "tax reduction and exemption" as mentioned in Item (2) of Article 8 of the Regulations refers to the tax reduction and exemption determined by laws enacted by the National People's Congress and its Standing Committee, administrative regulations promulgated by the State Council and relevant provisions of the State Council.

Chapter V Tax Deduction

Article 39 The income tax paid abroad as mentioned in Article 12 of the Regulations refers to the income tax actually paid by taxpayers from outside China. Excluding tax reduction and exemption, after-tax compensation and taxes borne by others. However, if China and foreign countries have signed an agreement to avoid double taxation, it shall be implemented in accordance with the provisions of the agreement.

Article 40 The taxable amount of overseas income mentioned in Article 12 of the Regulations refers to the taxable amount of taxpayers' overseas income after deducting the costs, expenses and losses allocated for obtaining the income in accordance with the relevant provisions of the Regulations and these Detailed Rules. The tax payable is a deduction limit, which should be calculated according to the country (region), not according to the project. The calculation formula is as follows:

Pre-tax deduction limit of overseas income tax = total taxable amount of domestic and overseas income calculated according to the tax law × (total domestic and overseas income from overseas income).

Article 41 If the tax actually paid by a taxpayer on his overseas income is lower than the deduction limit calculated in accordance with the provisions of the preceding article, it may be deducted from the tax payable. If the amount exceeds the deduction limit, the excess shall not be deducted from the tax payable in this year, nor shall it be classified as expenses, but it can be supplemented by the balance deducted from taxes in subsequent years, and the maximum period of supplementary deduction shall not exceed 5 years.

Article 42 Taxpayers who obtain profits from other enterprises that have paid income tax may adjust the paid tax amount when calculating the enterprise income tax.

Chapter VI Collection and Management

Article 43 The enterprise income tax mentioned in Article 14 of the Regulations shall be paid by the taxpayer to the local competent tax authorities, and its location refers to the place where the taxpayer actually operates and manages. Railway operation, civil aviation transportation, post and telecommunications enterprises, etc. , should be paid by the organization responsible for management and control. Specific measures shall be formulated separately.

Article 44 The term "liquidation income" as mentioned in Article 13 of the Regulations refers to the balance of all the assets or property of the taxpayer that exceeds the paid-in capital after deducting all liquidation expenses, losses, liabilities, undistributed profits, public welfare funds and provident funds of the enterprise.

Forty-fifth monthly or quarterly advance payment of enterprise income tax shall be specifically approved by the competent tax authorities according to the tax payable by taxpayers.

Article 46 When taxpayers pay income tax in advance, they shall pay it in advance according to the actual number of tax payment periods. If it is difficult to pay in advance according to the actual amount, the income tax can be paid in installments according to112 or 1/4 of the taxable income of the previous year, or other methods recognized by the local tax authorities can be adopted. Once the prepayment method is determined, it shall not be changed at will.

The income from overseas investment can be settled at the end of the year.

Article 47 If a taxpayer cannot provide complete and accurate vouchers of income, costs and expenses and cannot correctly calculate the taxable income, the tax authorities shall have the right to verify its taxable income.

Article 48 Taxpayers shall submit income tax returns and annual accounting statements to the local competent tax authorities within the prescribed time limit, regardless of whether the tax year is profit or loss.

Article 49 A taxpayer shall file an income tax declaration with the local competent tax authorities before going through the cancellation of industrial and commercial registration.

Article 50 Where a taxpayer is merged, divided or terminated in the middle of a year, it shall, within 60 days from the date of stopping production and operation, go through the settlement and payment of the current income tax with the local competent tax authorities.

Article 51 The conditions for identifying affiliated enterprises as mentioned in Article 10 of the Regulations and the order and method of reasonable adjustment by tax authorities shall be implemented in accordance with the relevant provisions of the Law of People's Republic of China (PRC) Municipality on the Administration of Tax Collection and its detailed rules for implementation.

Article 52 The tax year mentioned in Article 4 of the Regulations refers to 10/day to February 1 day.

If a taxpayer starts business in the middle of a tax year, or the actual operating period of the tax year is less than 12 months due to merger or closure, the actual operating period shall be regarded as a tax year.

When a taxpayer liquidates, the liquidation period shall be regarded as a tax year.

Article 53 The income tax underpaid by taxpayers at the end of the year shall be paid in the next year. The income tax paid in advance by taxpayers at the end of the year will be deducted in the next year.

Article 54 The calculation of taxable income of taxpayers shall be based on accrual basis.

The following operating income of taxpayers can be determined by stages, and the taxable income can be calculated accordingly:

(1) If the goods are sold by installment, the realization of sales revenue can be determined according to the date when the buyer pays the price as agreed in the contract;

(two) the construction, installation and assembly projects and the provision of labor services that last for more than one year can be determined according to the completion schedule or workload;

(3) Processing and manufacturing large-scale mechanical equipment and ships for other enterprises. If it lasts for more than one year, the realization of income can be determined according to the completion schedule or the workload completed.

Article 55 Taxpayers who use the goods and products of their enterprises for capital construction, special projects and employee welfare shall be regarded as income; Materials saved by taxpayers in processing and assembling foreign materials should also be treated as income if they are left to enterprises according to the contract.

Article 56 Taxpayers shall not omit or double-calculate items that affect taxable income.

Article 57 The income tax paid by taxpayers shall be calculated in RMB. If the income is in foreign currency, when the tax is paid in advance on a monthly or quarterly basis, the taxable income shall be calculated by converting it into RMB according to the national foreign exchange quotation on the last day of the month (quarter) (in principle, the middle price, the same below); At the time of final settlement after the end of the year, the foreign currency income that has been paid tax in advance on a monthly (quarterly) basis will not be recalculated, and only the part of foreign currency income that has not been paid tax in the whole year will be converted into RMB according to the foreign exchange quotation on the last day of the year to calculate the taxable income.

Article 58 If the income obtained by taxpayers is non-monetary assets or rights and interests, the amount of income shall be calculated or evaluated with reference to the current market price.

Chapter VII Supplementary Provisions

Article 59 The Ministry of Finance of People's Republic of China (PRC) or State Taxation Administration of The People's Republic of China shall be responsible for the interpretation of these Rules.

Article 60 These Rules shall come into force as of the date of implementation of the Provisional Regulations of People's Republic of China (PRC) Municipality on Enterprise Income Tax. The Detailed Rules for the Implementation of the Income Tax Regulations of State-owned Enterprises in People's Republic of China (PRC) (Draft) issued by the Ministry of Finance on June 5438+0984+ 10/8, and the Detailed Rules for the Implementation of the Interim Regulations on the Income Tax of Collective Enterprises in People's Republic of China (PRC) 1985 and 18 issued on July 22.