企业所得税税前扣除管理办法(国税发[2000]No.84)(英文版).docx

1、Measures for Pre-tax Deductions from Income Tax for Enterprises 企业所得税税前扣除管理办法（国税发2000No.84）(英文版)2009-05-05 Guo Shui Fa 2000 No.84To： the bureaus of state taxation and local tax bureaus of each province， autonomous region， municipality and the cities under separate state planning：（The circular is omi

2、tted）Measures for Pre-tax Deductions from Income Tax for EnterprisesChapter I General ProvisionsArticle 1 These Measures are hereby formulated in accordance with the Interim Regulations of the Peoples Republic of China on Income Tax for Enterprises （the Regulations） and implementing rules thereof （t

3、he Rules）。Article 2 According to Article 4 of the Regulations， the balance of total annual income to the taxpayer in each tax year less the allowed deductions shall be the taxable income. The allowed deductions mean all necessary and normal costs， expenses， taxes and losses of the taxpayer in each t

4、ax year arising in connection with the acquisition of taxable income.Article 3 The deductions declared by the taxpayer shall be true and legitimate. Truthfulness means the evidence is available that related expenditure has arisen. Legitimacy means conformity with the state tax regulations. In case o

5、f discrepancy between other regulations and the tax regulations， the latter shall prevail.Article 4 Unless otherwise stipulated by the tax laws and regulations， the confirmation of pre-tax deductions shall comply with the following principles：（1） Accrual basis principle： The taxpayer shall confirm t

6、he deductions at the time when the expense accrues rather than at the time of payment.（2） Matching principle： The expenses of the taxpayer shall be declared for deduction in the period when the expense shall be matched or distributed. The deductible expenses that the taxpayer shall declare in a cert

7、ain tax year shall not be deducted earlier or later.（3） Principle of relevance： The expenses that the taxpayer may deduct shall be relevant to the taxable income in nature and at root.（4） Principle of certainty： No matter when the deductible expenses of the taxpayer are paid， the amount shall be cer

8、tain.（5） Principle of reasonableness： The computing and distribution methods for the deductible expenses of the taxpayer shall comply with the general operating rules and accounting practices.Article 5 The expenditure of the taxpayer must be strictly divided into operating expenditure and capital ex

9、penditure. Capital expenditure shall not be directly deducted in current period， and instead it shall be depreciated， amortized in several periods or recognized in the costs of related investments in accordance with the provisions of tax laws and regulations.Article 6 Except for the provisions of Ar

10、ticle 7 of the Regulations， the following expenditures shall not be deducted from the taxable income：（1） Illegal expenditure such as bribe；（2） Fine， penalty and overdue fine paid for violation of laws and administrative regulations；（3） Provision for impairment of inventories， impairment of short-ter

11、m investment and impairment of long-term investment， risk reserve funds （including investment risk reserve fund）， and any other reserves other than those set aside in accordance with state tax laws and regulations；（4） the part in excess of the statutory deduction scope and standard （proportion or am

12、ount） specified by tax laws and regulations.Article 7 The confirmation of the costs of such assets as inventory， fixed assets， intangible assets and investments of the taxpayer shall comply with the historical cost principle. In case of restructuring of the taxpayer， including merger， split-up and c

13、apital structure adjustment， if the potential appreciation or losses of related assets have been confirmed and realized in tax payment， the cost of related assets may be determined according to the appraised value.Chapter II Cost and ExpenseArticle 8 Cost means the cost arising from the taxpayers sa

14、les of commodities （including products， materials， leftovers， waste products and old and waste materials）， provision of labor services， and transfer of fixed assets and intangible assets （including technology transfer）。Article 9 The taxpayer shall reasonably divide the cost arising from operating ac

15、tivities into direct cost and indirect cost. Direct cost means the direct materials and direct labor in the operating cost that may be directly stated for related cost computing objective or labor. Indirect cost means the joint cost of services provided by several departments to the same cost objective or the joint cost of the same input that may manufacture and provide two or more products or labor services.Direct cost may be directly included in the operating cost of related cost objective or labor service according to relevant accounting vouchers and records. Indirect cost mu