Different donation methods and donation to different regions can enjoy different tax incentives, so enterprises need to make plans: how to donate can not only improve the visibility of the enterprise, but also give back to the society; And can fully enjoy the country's preferential tax policies.

According to the announcement of the Ministry of Finance, the State Administration of Taxation and The State Council Poverty Alleviation Office2019Annual regulation55No. : Zi2019years1month1sunrise2022years12month31As of today, enterprises or individual industrial and commercial enterprises will be exempt from VAT and allowed to deduct according to the actual amount of enterprise income tax when calculating the taxable amount of income tax for poverty alleviation donations made by enterprises or individual industrial and commercial enterprises directly or through public welfare social organizations or the people's governments at or above the county level and their ministries and commissions and institutions directly under them. The above-mentioned policies may continue to be applied if the target areas have been lifted out of poverty during the period of implementation of the policies.

Such as corporate donations100WGoods to target poverty alleviation areas (target poverty alleviation areas) include832The key county of national poverty alleviation and development work, concentrated contiguous poverty-stricken area county (Xinjiang Aksu region6county1City to enjoy the area policy) and the establishment of the poor village card 】, value-added tax13WExemption, actual income tax deduction, not subject to12%Scale limit.

According to Article 9 of the Enterprise Income Tax Law, the total amount of annual profits shall be derived from the donations made by enterprises to public welfare social organizations, people's governments at or above the county level and their departments or public welfare mass organizations12%The less part can be deducted before tax, and the more part can be deducted for the following three years.

Let's say the total corporate profit for the year is100WIf the enterprise through the above donation100WGoods, cost80W. The allowable deduction limit for income tax is10012%=12W,That requires a tax increase in the annual settlement20-12=8W,this8WThe deduction can be carried forward in the next three years.

If a company directly donates its goods to other public welfare undertakings or other units or individuals other than the target poverty alleviation areas, the VAT and income tax will not be eligible for preferential treatment.

Through the above different donation ways, Huanze Ruizhi Tax Agent firm suggests: enterprises should make reasonable arrangements for donation, so as to save tax and improve the visibility of enterprises, and contribute their share to the society for national construction.

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