2. Tax-free items include financial allocations, government funds, funds, additional income and administrative fees set up and collected with the approval of the State Council and the financial department, extra-budgetary funds managed by financial accounts are turned over without the approval of the financial department, special subsidy income, government subsidies, membership fees and donation income collected by industry associations. All the above tax-exempt items must provide the approval documents of relevant departments. To accept the donation income, the donation certificate signed by the donor and the certificate signed by the leader of the donation unit must also be provided. The competent tax authorities shall not consider the income without the supporting documents and approval documents as tax-free income.
3. The allowable deduction of expenditure items refers to the costs and expenses related to the income obtained by trade associations. The specific projects are as follows:
The wages and salaries of staff of trade associations shall be deducted before tax according to the wage standards implemented by institutions, and trade associations shall report the wage system and wage standards to the competent tax authorities for the record. Trade union funds, employee welfare funds and employee education funds are deducted respectively according to 2%, 14% and 1.5% of the total pre-tax standard wages, but those directly included in the relevant expenses may not be deducted again when calculating taxable income. When calculating the taxable income, if the employee welfare expenses have been deducted, the medical fund shall not be deducted; If there is no standard for calculating and deducting employee welfare expenses, the medical fund can be calculated and deducted within the standard amount of employee welfare expenses. The employee medical fund of retirees can be deducted according to the prescribed standards. The consulting service fees, technical consulting fees, technology development fees, technology achievement transfer fees, technical service fees and other taxable business service fees provided by trade associations to their members shall use tax stamps and pay taxes according to law. Taxes paid are allowed to be charged before tax.
Donations made by trade associations for public welfare, relief and cultural undertakings shall be partially deducted within 3% of the annual taxable income.
Trade associations, through donations from non-profit social organizations and state organs (including China Red Cross Society) to the Red Cross cause, are allowed to deduct the taxable income in full when calculating and paying enterprise income tax.
Donations made by trade associations to welfare and non-profit pension service institutions through non-profit social organizations and government departments are allowed to be deducted in full from income before paying enterprise income tax. Service institutions for the elderly refer to welfare and non-profit institutions that provide life care, culture, nursing and fitness services for the elderly, mainly including: social welfare homes, nursing homes for the elderly (nursing homes, service centers for the elderly, apartments for the elderly, nursing homes for the elderly, rehabilitation centers and nurseries for the elderly).
Donations provided by trade associations to rural compulsory education through non-profit social organizations and state organs are allowed to be fully deducted from income before paying enterprise income tax. The scope of rural compulsory education refers to rural towns (excluding towns where county and county-level municipal governments are located), rural primary and junior high schools and special education schools belonging to this stage. Taxpayers also enjoy the pre-tax deduction policy for donations from rural compulsory education schools and high school schools.
Non-profit social organizations and state organs that accept donations or handle donations shall use the donation bills uniformly printed (supervised) by the central or provincial financial departments in accordance with their financial affiliation, and affix the special financial seal of the donation recipient or donation unit. On this basis, the tax authorities will deduct the donated units before tax.
Donations provided by trade associations to public welfare youth activity places (including new ones) through non-profit social organizations and state organs are allowed to be fully deducted before paying enterprise income tax. Public welfare youth activity places refer to youth palaces, youth activity centers and other public welfare places that provide science, technology, culture, moral education, patriotism education and sports activities for young students.
In order to support the development of culture, art and other undertakings, the donations provided by trade associations to the following cultural undertakings through cultural administrative departments or non-profit public welfare organizations approved to be established are included in the scope of public welfare and relief donations. After being audited by the competent tax authorities, the part within 10% of the annual taxable income can be deducted when calculating the taxable income:
1. Donate to the national key symphony orchestra, ballet, opera company, Peking Opera company and other national art performance groups.
2. Donate to public libraries, museums, science and technology museums, art galleries and revolutionary history memorial halls.
3 donations to key cultural relics protection units. Taxpayers directly donate to recipients at all levels and are not allowed to deduct them before enterprise income tax.