Dalian Municipal office, State Administration of Taxation

04-13-2009

GSF No. [1999] 65

　　Offices of State Administration of Taxation and Local Taxation Bureaus of all Provinces， Autonomous Regions， Municipalities Directly under the Central Government and Cities with Independent Planning Status：
　　Regulations on the Collection and Management of the Corporate Income Tax of Public Institutions， Social Groups and Private Non-Corporate Units
　　Article 1 In accordance with the Provisional Regulations of the People's Republic of China on Corporate Income Tax， its implementing rules and the relevant tax provisions， the public institutions， social groups and private non-corporate units shall pay corporate income tax for their earnings from production， operations and other activities. The taxpayers are the independent economic accounting units of the taxpaying public institutions， social groups and private non-corporate units.
　　Article 2 The public institutions， social groups and private non-corporate units engaged in production and operations and the public institutions， social groups and private non-corporate units that are not exclusively engaged in production and operations but have taxable incomes shall handle tax registration in accordance with the relevant provisions of the Regulations of the People's Republic of China on Tax Collection and Management， its implementing rules and the Regulations of the State Administration of Taxation on Tax Registration Management.
　　In handling tax registration， the taxpayers shall provide the local competent tax authorities with the following documents： the business licenses， institutional corporate certificates， other establishment-approving documents， social group registration certificates， private non-corporate unit registration certificates， other registered qualification certificates； the articles of association， contracts， or agreements； the bank account number certificates； the legal representatives' ID cards； the uniform organizational code certificates.
　　Article 3 The incomes of the public institutions， social groups and private non-corporate units， except the items that are exempted from the corporate income tax by the State Council or the Ministry of Finance and the State Administration of Taxation， shall all be included into the total taxable incomes. The corporate income tax is calculated and collected according to the following formula：
　　Total taxable income = total income - incomes exempt from corporate income tax
　　In the above formula， the total income includes the financial subsidies received by the public institutions， social groups and private non-corporate units， the subsidies from the superior authorities， the undertaking incomes， the operational incomes， the incomes turned over by the subsidiary units， and other incomes.
　　Unless otherwise provided， the incomes exempted from corporate income tax in the above formula are specifically：
　　（1） The financial allocations；
　　（2） The government funds， funds， additional incomes， etc. whose establishment and fund collection have been approved by the State Council and the Ministry of Finance and which have been included into the financial budgetary management or the extra-budgetary fund special-account management；
　　（3） The administrative and undertaking charges that have been approved by the State Council and the provincial people's governments （excluding the cities with Independent Planning Status） and have been included into the financial budgetary management or extra-budgetary fund special-account management；
　　（4） The extra-budgetary funds that have been approved by the Ministry of Finance for not being turned over to the financial special-account management；
　　（5） The special subsidies that are received by the public institutions from the competent authorities or the superior units for institutional development；
　　（6） The incomes that are received by the public institutions from the after-tax profits of their subsidiary independent accounting units；
　　（7） The subsidies that are received by the social groups from the governments at all levels；
　　（8） The membership dues collected by the social groups in accordance with the provisions of the civil affairs and financial departments at or above the provincial level.
　　（9） The donations made by various sectors of society.
　　Article 4 The public institutions， social groups and private non-corporate units that are eligible for the tax exemptions specified in Article 3 of the Regulations shall provide the competent tax authorities with the following materials as required by the tax authorities when accepting the inspections of the tax authorities：
　　（1） For the financial allocations， they must provide the allocation certificates issued by the financial departments or the superior allocating departments；
　　（2） For the government funds， funds， additional incomes， etc. whose establishment and fund collection have been approved by the State Council and the Ministry of Finance， they must provide the documents approving their establishment and fund collection， the documents proving they have been included into the financial budgetary management or extra-budgetary fund special-account management， the deposit vouches or the payment certificates；
　　（3） For the administrative and undertaking charges that have been approved by the State Council and the provincial people's governments， they must provide the approving documents， the documents proving they have been included into financial budgetary management or extra-budgetary fund special-account management， the deposit vouches or the payment certificates；
　　（4） For the extra-budgetary funds that have been approved by the Ministry of Finance for not being turned over for financial special-account management， they must provide the approving documents issued by the Ministry of Finance；
　　（5） For the special subsidies that are received by the public institutions from the competent authorities and the superior units for institutional development， they must provide the documents proving the allocations；
　　（6） For the incomes that are received by the public institutions from the after-tax profits of their subsidiary independent accounting units， they must provide the tax returns and tax payment certificates of the subsidiary units and the certificates issued by the local competent tax authorities；
　　（7） For the subsidies that are received by the social groups from the governments at all levels， they must provide the relevant proving documents；
　　（8） For the membership dues collected by the social groups， they must provide the approving documents of the civil affairs and financial departments at or above the provincial level；
　　（9） For the donations received from various sectors of society， they must provide the donation certificates signed by the donors and the certificates signed by the leaders of the beneficiary units；
　　（10） For the head-office management fees drawn from the subsidiary independent accounting units with the approval of the tax authorities， they must provide the approving documents issued by the tax authorities；
　　（11） Other proving documents required by the tax registration certificates and the tax authorities.
　　For the incomes without the above proving documents， the competent tax authorities may refuse to regard them as tax-free incomes.
　　Article 5 The taxable incomes of the public institutions， social groups and private non-corporate units are the balances of their total taxable incomes in the tax year minus the expenditure items related to the taxable incomes. The determination of the expenditure items must be proportional to the incomes.
　　The calculating formula is as follows：
　　Taxable income = total taxable income - deductible expenditure items
　　Article 6 The taxable incomes of the public institutions， social groups and private non-corporate units are calculated on the accrual basis. When calculating the taxable incomes， the taxes shall be calculated according to the tax rules when their financial and accounting methods contradict with the tax rules.
　　Article 7 When the public institutions， social groups and private non-corporate units calculate their expenditure items， they shall separate the expenditure items related to the taxable incomes from the expenditure items related to the tax-free incomes. If the expenditure items are truly difficult to be separated， the taxpayers may， after approved by competent tax authorities， determine them according to the sharing ratio or other reasonable methods. Once the calculating method is selected， it shall not be changed within the tax year. The calculating method shall be reported to the competent tax authorities for the record.
　　The sharing ratio method takes the proportion of the total taxable incomes of the public institutions， social groups and private non-corporate units to their total incomes as the sharing ratio to share the taxable portions of the total incomes and to calculate the taxable incomes. The calculating formula is as follows：
　　The cost， expense and loss to be shared from the taxable total income = total expenditure X total taxable income ÷ total income
　　Some of the expenditure items to be shared from the total expenditure can be separated， while others cannot. After a sharing ratio is worked out for the inseparable portion according to the sharing ratio method， the sharing ratio can be used to work out the expenditure items to be shared from the total tax incomes.
　　Article 8 The deductible expenditure items when calculating the taxable incomes refer to the costs， expenses and losses related to the taxable incomes of the public institutions， social groups and private non-corporate units.
　　The following expenditure items can be deducted according to the specified scopes and standards：
　　（1） The public institutions that observe the wage system for the staff of the public institutions set by the State Council shall deduct the wages before tax payment according to the specified wage standards but cannot deduct the wages above the specified wage standards before tax payment. The public institutions that have been approved by the competent government departments to link their total wages with economic efficiency may， subject to the approval of the tax authorities， deduct the actually issued amount of wages within the wage standards set by the method linking wages with economic efficiency. When the wages drawn according to the wage standards set by the method linking wages with economic efficiency are lower than the actually issued amount of wages， the balance can be deducted before tax payment when issuing wages in the ensuing year. The public institutions that do not observe the above two methods shall deduct the wages according to the taxable wage standards uniformly specified in the tax law. The social groups and private non-corporate units shall make wage deductions in the light of the public institutions. The public institutions， social groups and private non-corporate units shall report their wage systems and wage standards to the competent tax authorities for the record.
　　（2） The trade union fees， welfare fees and educational fees of the employees of the public institutions， social groups and private non-corporate units shall be respectively calculated and deducted according to the rates of 2%， 14% and 1.5% of the total standard wages that are allowed to be deducted before tax payment as specified in the preceding paragraph. But if they are directly entered into the relevant expenses， they shall not be deducted when calculating the taxable incomes.
　　（3） When the public institutions， social groups and private non-corporate units calculate their taxable incomes， those having deducted their employee welfare fees are not allowed to calculate and deduct the medical funds. Those failing to calculate and deduct their employee welfare fees may calculate and deduct the medical funds within the standard limits of the employee welfare fees. The medical funds of the retired personnel may be deducted according to the limits worked out according to the prescribed standards.
　　（4） The pension insurance funds， the lay-off insurance funds and the unemployment insurance funds paid by the public institutions， social groups and private non-corporate units according to the provisions of the central and provincial people's governments may be deducted according to the provisions of the tax laws.
　　（5） The donations made by the public institutions， social groups and private non-corporate units for public， relief and cultural undertakings that do not exceed the 3% of their taxable incomes within the year can be deducted.
　　（6） The business hospitality fees of the public institutions， social groups and private non-corporate units that arise from receiving the taxable incomes can be calculated and deducted according to the standards prescribed by the tax laws and after the tax-free incomes are deducted from the total incomes.
　　（7） The loan interests of the public institutions， social groups and private non-corporate units can be deducted according to the standards prescribed by the tax laws.
　　Article 9 The taxes on the assets of the public institutions， social groups and private non-corporate units are handled in the following ways：
　　（1） All the assets of the public institutions， social groups and private non-corporate units shall be priced， depreciated and amortized according to the standards prescribed by the tax laws. The repair and procurement funds withheld according to the financial and accounting rules shall not be deducted before the calculation and payment of the income tax.
　　（2） The fixed assets of the public institutions， social groups and private non-corporate units shall in general be depreciated according to the straight-line method or the workload method. If they have to use other depreciation methods， they may apply to the competent tax authorities and use these methods after being examined and approved.
　　The formula for calculating the fixed assets depreciation according to the straight-line method is as follows：
　　1-projected net residual value ratio
　　Annual depreciation rate for fixed assets = —— ×100％
　　depreciable life
　　Monthly depreciation rate = annual depreciation rate ÷ 12
　　Amount of depreciation = original value of fixed assets X monthly depreciation rate
　　The formula for calculating the fixed assets depreciation according to the workload method is as follows：
　　original value X （1-projected net residual value ratio）
　　Depreciation per mileage （per working hour）＝ ——
　　total mileage （total working hours）
　　（3） The shortest lengths of time for the fixed assets depreciation of the public institutions， social groups and private non-corporate units are as follows：
　　A. 20 years for houses and buildings；
　　B. 10 years for special equipment， transportation equipment and exhibits；
　　C. 5 years for general equipment， books and other fixed assets.
　　（4） The public institutions， social groups and private non-corporate units that failed to calculate and draw their fixed assets depreciation and now must calculate and draw the fixed assets depreciation for the sake of paying the corporate income tax shall reassess the net values and remaining depreciation years of their fixed assets. After being examined and approved by the competent tax authorities， they can calculate and draw the fixed assets depreciation according to the provisions of the Regulations and its implementing rules as from the year when they began to pay the corporate income tax.
　　（5） The public institutions， social groups and private non-corporate units may withdraw the depreciation for their fixed assets leased through financing. While they cannot withdraw depreciation for the fixed assets leased for business operations， the lease rentals may be spread into the current costs or related expenditure items according to the service life of the fixed assets.
　　（6） With regard to the intangible assets that are used by the public institutions， social groups and private non-corporate units and are related to the taxable incomes， their values shall be amortized according to the straight-line method and the provisions of the tax laws.
　　Article 10 If the public institutions， social groups and private non-corporate units are eligible for drawing the head office management fees， they may draw the head office management fees from their subsidiary institutions according to certain ratios or standards in accordance with the provisions of the Regulations of the State Administration of Taxation on the Examination and Approval of the Pre-Tax Deduction of the Management Fees Drawn by the Head Offices （GSF [1996] No. 177） and the Additional Circular to the Regulations of the State Administration of Taxation on the Examination and Approval of the Pre-Tax Deduction of the Management Fees Drawn by the Head Offices （GSH [1999] No. 136） and subject to the approval of the tax authorities. The management fees handed over by the subsidiary units without approval and other expenditure items handed over by the subsidiary units shall not be deducted before tax payment.
　　Article 11 The incomes from selling the fixed assets and intangible assets of the public institutions， social groups and private non-corporate units shall be included into the taxable incomes. The expenditure items arising from selling the fixed assets and intangible assets can be deducted before tax payment.
　　Article 12 The following expenditure items of the public institutions， social groups and private non-corporate units shall not be deducted when calculating the taxable incomes：
　　（1） The equipment procurement fees of the public institutions， social groups and private non-corporate units that are entered into the expenditure items of undertaking expenditure， operational expenditure and cost expenditure and belong to the fixed assets procurement expenditure；
　　With regard to the repair fees of the public institutions， social groups and private non-corporate units that are entered into the expenditure items of undertaking expenditure， operational expenditure and cost expenditure， the repair fees shall be included into the original values of the fixed assets and cannot be directly deducted before tax payment if they belong to the expenditure of fixed assets repairs and if the repair fees exceed the fixed assets standards；
　　（2） The self-financed capital construction expenditure of the public institutions， social groups and private non-corporate units；
　　（3） The expenditure on the acquisition and development of the intangible assets；
　　（4） The fines against illegal operations， the losses of the confiscated properties， and the tax-related overdue fines and other fines；
　　（5） The compensable portion of the losses arising from natural disasters or accidents；
　　（6） The public-interest and relief donations above the state-prescribed standards and the non-public-interest and non-relief donations；
　　（7） All types of sponsor expenditure；
　　（8） The subsidies made to the subsidiary units；
　　（9） Other expenditure items unrelated to the taxable incomes.
　　Article 13 If the public institutions， social groups and private non-corporate units receive taxable incomes from their subsidiary units in the special economic zones and other low tax-rate areas， they shall pay the corporate income tax difference between the mandatory tax rates and the actual tax rates.
　　Article 14 If the public institutions， social groups and private non-corporate units lose money from their production and operational activities， they can report to the competent tax authorities according to the procedures specified in the Regulations of the State Administration of Taxation on the Examination and Approval of the Corporate Income Tax Pre-Tax Loss Makeup and receive the loss make up within the period prescribed by the tax laws after being verified and approved by the competent tax authorities. If the public institutions， social groups and private non-corporate units have not paid the corporate income tax in the past， they can make up the losses occurring during the tax years after they handled tax registration.
　　Article 15 If the fixed assets and liquid assets of the public institutions， social groups and private non-corporate units suffer net losses such as inventory loss， damage and write-off， the bad account losses and the extraordinary losses caused by natural disasters and other force majeure factors in the course of their production and operations， they may report to the competent tax authorities according to the procedures specified in the Regulations of the State Administration of Taxation on the Administration of the Pre-Tax Deduction of the Corporate Property Losses and deduct them before they pay the corporate income tax after been examined and approved by the competent tax authorities. No property losses that have not been approved by the tax authorities can be deducted before tax payment.
　　Article 16 The public institutions， social groups and private non-corporate units that have taxable incomes shall file their tax returns according to the provisions of the Regulations and its implementing rules. Uniform tax invoices shall be used for the taxable incomes， unless financial receipts can be used.
　　Article 17 The public institutions， social groups and private non-corporate units shall use the Corporate Income Tax Return Form for Public Institutions， Social Groups and Private Non-Corporate Units for tax declaration.
　　The Corporate Income Tax Return for Public Institutions， Social Groups and Private Non-Corporate Units （see appendix） and the Explanatory Notes for Filling the Corporate Income Tax Return for Public Institutions， Social Groups and Private Non-Corporate Units （see appendix） can be printed and issued in a unified way by the provincial tax authorities according to the actual needs for the use of the taxpayers， the tax agents and the tax authorities.
　　No matter whether the taxpayers have taxable incomes within the tax year， they shall submit their tax return and accounting statements to the competent tax authorities according to the prescribed time and requirements.
　　Article 18 If the public institutions， social groups and private non-corporate units fail to respectively calculate the costs， expenses and losses related to the taxable incomes and those related to the tax-free incomes and fail to correctly declare their taxable incomes worked out according to the sharing ratio and other reasonable methods， the competent tax authorities have the right to set their tax liabilities in accordance with the provisions of the Law of the People's Republic of China on Tax Collection and Management， its implementing rules and other related laws and regulations.
　　Article 19 The earnings from production and operations and other earnings of the public institutions， social groups and private non-corporate units are entitled to the relevant tax preference in accordance with the provisions of the Regulations， its implementing rules and the related tax regulations. The specific matters in this respect shall be handled in accordance with the provisions of the Regulations of the State Administration of Taxation on the Administration of Corporate Income Tax Reduction and Exemption. If the taxpayers eligible for tax reduction and exemption suffer operational losses in the preceding year， they shall first use the reduced or exempted tax to make up the losses and then enjoy the tax preference if the reduced or exempted tax remains in surplus after the loss make up.
　　Article 20 The Regulations enters into force on January 1， 1999.
　　Appendix 1
　　Corporate Income Tax Return for Public Institutions， Social Groups and Private Non-Corporate Units
　　Taxpayer code number： □□□□□□□□□□□□□□□
　　Tax period： From __ （month） __ （day）， __ （year）
　　to __ （month） __ （day）， __ （year）
　　Unit：

Taxpayer’s name
Address
Telephone	Postcode
Type of unit	Level of budget
Opening bank	Account number
Items	Line number	Booked amount	Self-adjusted amount according to tax laws
1. Total income	01
01. Financial subsidy	02
02. Subsidy from superior level	03
03. Specially allocated fund	04
04. Undertaking income	05
05. Operational income	06
06. Amount turned over by subsidiary units	07
07. Other incomes	08
2. Deductible income items exempted from corporate income tax	09
01. Funds, capital and additional incomes whose collection has been approved by the State Council and the Ministry of Finance and which have been included the budgetary and extra-budgetary fund special-account management	10
02. Administrative and undertaking charges whose collection has been approved by the State Council and the provincial governments and which have been included into the budgetary and extra-budgetary fund special-account management	11
03. Extra-budgetary funds that have been approved by the Ministry of Finance for not being turned over for special-account management	12
04. Special subsidies received from the competent authorities and superior units	13
05. Incomes received from the after-tax profits of subsidiary independent accounting units	14
06. Subsidies received by social groups from the governments at all levels	15
07. Membership dues collected according to the provisions of the civil affairs and financial departments at or above the provincial level	16
08. Donations from various sectors of society	17
09. Financial allocations	18
3. Total taxable income	19
4. Proportion of total taxable income to total income (to be filled up by the units using the sharing ratio method)	20	—	％
5. Deductible expenditure items	21
01. Costs	22
02. wages	23
03. Employee welfare	24
04. Employee education	25
05. Trade union expenses	26
06. Public-interest and relief donations	27
07. Business hospitality	28
08. Net interest expenditure	29
09. Head office management fee approved to be turned over	30
10. Social insurance payment	31
11. Scholarship	32
12. Official duty expenses	33
13. Business expenses	34
14. Depreciation	35
15. Amortization of intangible assets	36
16. Amortization of deferred assets	37
17. Losses arising from assets transfer, inventory loss, damage and write-off	38
18. Net loss arising from exchanges	39
19. Loss arising from bad accounts	40
20. Rental expenditure	41
21. R&D expenses and additional deductions	42
22. Marketing (operational) tax and surcharges	43
23. Other expenditure items	44
6. Earnings	45
Minus: making up previous year’s operational loss	46
Minus: tax-free earnings arising from approved tax reduction and exemption	47	—
7. Taxable earnings	48	—
Applicable tax rate	49	—
8. Payable income tax	50	—
Plus: Overdue tax payment (rebate) arising from previous year’s profit and loss adjustment	51	—
Plus: Overdue tax payment for domestic investment returns	52	—
Plus: Overdue tax payment for overseas investment returns	53	—
Plus: Unpaid income tax at the beginning of the period	54	—
Minus: Paid-up income tax	55	—
9. Income tax to be paid (refunded) at the end of the period	56	—
Legal representative (signature & seal): Account in charge (signature & seal): Official seal: __ (month) __ (day), __ (year) （To be filled up by self-declared taxpayer）	Agent (signature) Agent’s professional license number: Agency’s official seal: __ (month) __ (day), __ (year) （To be filled up by those entrusting intermediary agent for tax declaration）		Handling tax authority: 　　(Official seal) Handled by: Checked by: __ (month) __ (day), __ (year) （To be filled up by the tax authority）

　　Appendix 2
　　The Explanatory Notes for Filling the Corporate Income Tax Return for Public Institutions， Social Groups and Private Non-Corporate Units
　　1. Scope of Application
　　（1） The Corporate Income Tax Return for Public Institutions， Social Groups and Private Non-Corporate Units is the nationally uniform Tax Return and shall be filled up according to the provisions of the tax laws and the requirements of this form by all the public institutions， social groups and private non-corporate units that pay corporate income tax in accordance with the provisions of the Provisional Regulations of the People's Republic of China on Corporate Income Tax， its implementing rules， and the Circular of the Ministry of Finance and the State Administration of Taxation on the Issues Concerning the Corporate Income Tax Collection of the Public Institutions， Social Groups and Private Non-Corporate Units （CSZ [1997] No. 75）。
　　（2） All the public institutions， social groups and private non-corporate units must fill up this form truthfully， completely and accurately and submit other attached forms according to the corporate income tax payment requirements， no matter whether they make profit or lose money. Meanwhile， they must also submit their accounting statements and income and expenditure explanations， including the balance sheet， the income and expenditure statements， the capital construction investment statement， the itemized undertaking expenditure statements， the itemized operational expenditure statements， and the notes to the accounting statements.
　　（3） The provincial tax authorities may add， delete or adjust the relevant items of this form in light of the specific conditions of the public institutions， social groups and private non-corporate units in their provinces， and submit their adjusted Corporate Income Tax Return for Public Institutions， Social Groups and Private Non-Corporate Units to the State Administration of Taxation for the record.
　　2. Form Head Items
　　（1） Taxpayer code number： the taxpayer code number in the Tax Registration Certificate and the Tax Registration Form.
　　（2） Tax period： the tax law-specified tax year for the tax payment.
　　（3） Taxpayer's name： the full name of the filling unit.
　　（4） Address： taxpayer's registered address specified in the Tax Registration Certificate.
　　（5） Telephone： the telephone number of the financial department.
　　（6） Type of unit： identify the type of the unit： public institutions， social groups or private non-corporate units.
　　（7） Level of budget： the level of income as classified by the relevant provisions of the Ministry of Finance.
　　3. Total Income
　　Lines 1~8 cover all the income items of the taxpayer. Line 1 refers to the total income of the taxpayer （including the tax-free income）， and lines 2~8 refer to the amounts of different accounting items. "Booked amount" refers to the amount calculated according to the accounting systems observed by the public institutions， social groups and private non-corporate units. "Self-adjusted amount according to tax laws" refers to the amount adjusted according to the accrual system specified in the taw laws.
　　The logical relation is： 1 = 2 + 3 + 4 + 5 + 6 + 7 + 8
　　4. Deductible income items exempted from corporate income tax
　　Lines 9~18 shall be filled up according to the contents of the items exempt from corporate income tax and the amount of financial allocation specified in Article 2 of the Circular on the Issues Concerning the Corporate Income Tax Collection of the Public Institutions， Social Groups and Private Non-Corporate Units （CSZ [1997] No. 75） issued by the Ministry of Finance and the State Administration of Taxation. Line 9 refers to the total amount， and lines 10~18 refer to the itemized amounts. "Booked amount" refers to the amount calculated according to the accounting systems observed by the public institutions， social groups and private non-corporate units. "Self-adjusted amount according to tax laws"refers to the amount adjusted according to the accrual system specified in the taw laws.
　　The logical relation is： 9 = 10 + 11 + 12 + 13 + 13 + 14 + 15 + 16 + 17 + 18
　　5. Total Taxable Income
　　Line 19 refers to the result of line 1 minus line 9.
　　The logical relation is： 19 = 1 - 9
　　6. Proportion of Total Taxable Income to Total Income
　　Line 20 proportion of the total taxable income to the total income refers to the percentage arising from the "total taxable income" in line 19 "self-adjusted amount according to tax laws" divided by line 1 total income".
　　The logical relation is： 20 = 19 ÷ 1
　　7. Deductible Expenditure Items
　　The amount in line 21 is a total sum of lines 22~44. For the units using the sharing ratio to calculate the amounts of the deductible expenditure items， they may use the sharing ratio， worked out by total expenditure X the amount in line 20， to work out the costs， expenses and losses to be shared by the taxable income.
　　Line 22 refers to the contents of the cost expenditure under the 509 account item of the Accounting System for Public Institutions.
　　Line 23 refers to the wage expenditure specified in paragraph 1 of Article 8 of the Regulations on the Collection and Management of the Corporate Income Tax of the Public Institutions， Social Groups and Private Non-Corporate Units.
　　Lines 24~29 refer to the amounts of the employee welfare fee， the employee educational expense， the trade union expense， the public-interest and relief donations， the business hospitality expense and the interest net expenditure drawn according to the provisions of the tax laws.
　　Line 30 refers to the amounts of the management fee drawn by the head office according to the provisions of the Regulations of the State Administration of Taxation on the Examination and Approval of the Pre-Tax Deduction of the Management Fee Drawn by the Head Offices （GSF [1996] No. 177） and the Additional Circular to the Regulations of the State Administration of Taxation on the Examination and Approval of the Pre-Tax Deduction of the Management Fee Drawn by the Head Offices （GSH [1999] No. 136）。
　　Lines 31~34 refer to the amounts of the social insurance fee， the scholarships， the official duty fee and the business fee specified under the 504 account item "undertaking expenditure" and the 505 account item "operational expenditure" of the Accounting System for Public Institutions.
　　Lines 35~36 refer to the amounts of depreciation， intangible assets amortization and deferred assets amortization withdrawn according to the provisions of the tax laws.
　　Line 38 refers to the net loss arising from the transfers of assets and investment assets conducted by the public institutions， social groups and private non-corporate units； it also refers to the net loss arising from the current inventory loss， damage and write-off and the net loss arising from the fixed assets loss， damage and write-off that are approved to be included into the expenditure item according to the provisions of the Regulations of the State Administration of Taxation on the Management of the Pre-Tax Deduction of Corporate Assets Losses （GSF [1997] No. 190）。
　　Line 39 refers to the net loss arising from the current exchange earning minus exchange expenditure.
　　Line 40 refers to the accrued bad-account loss of the public institutions， social groups and private non-corporate units.
　　Line 41 refers to the rental paid for leased houses and other assets of the public institutions， social groups and private non-corporate units.
　　Line 42 refers to the technological development expenses of the public institutions， social groups and private non-corporate units and the additional deductions allowed only when the R&D expenses was over 10% higher than in the previous year.
　　Line 43 refers to the sales tax and surcharge specified in the 512 account item "sales tax" of the Accounting System for Public Institutions.
　　Line 44 other expenditure items refer to the cost items that cannot be deducted according to the provisions of Article 7 of the Provisional Regulations on Corporate Income Tax but are not included into the costs and expenses specified in lines 24~45.
　　For lines 21~44， "booked amount" refers to the amount calculated according to the accounting systems observed by the public institutions， social groups and private non-corporate units； "self-adjusted amount according to tax laws"refers to the amount adjusted according to the Provisional Regulations on Corporate Income Tax， its implementing rules and other tax policies and regulations.
　　The logical relation is： 21 = 22 + 23 + 24 + 25 + 26 + 27 + 28 + 29 + 30 + 31 + 32 + 33 + 34 + 35 + 36 + 37 + 38 + 39 + 40 + 41 + 41 + 42 + 43 + 44
　　Those using the sharing ratio method to calculate all the deductible expenditure items may fill up line 21 only， leaving lines 22~44 blank.
　　8. Earnings
　　Line 45 refers to the amount of line 19 minus line 21.
　　The logical relation is： 45 = 19 - 21
　　Line 46 refers to the amount of operational loss： taxable income minus cost and expense expenditure related to taxable income. In other words， it refers to the amount of previous year's operational loss to be covered with the approval of the competent tax authorities.
　　Line 47 refers to the corporate income tax amounts of the public institutions， social groups and private non-corporate units that are reduced or exempted in accordance with the provisions of the preferential policies on corporate income tax and with the approval of the competent tax authorities. It does not refer to the contents of the income items exempted from corporate income that can be deducted as specified in Lines 9~18 or the units whose income tax is not reduced or exempted.
　　9. Taxable earnings
　　Line 48 refers to the amount resulting from line 45 minus lines 46 and 47.
　　The logical relation is： 48 = 45 - 46 - 47
　　The applicable tax rate for line 49 is the corporate income tax rate applicable to the public institutions， social groups and private non-corporate units. If the annual taxable earnings are below RMB30，000 （including RMB 30，000）， the corporate income tax is levied at the reduced rate of 18%； if the annual taxable earnings range from RMB 30，000 to RMB 100，000 （including RMB 100，000）， the corporate income tax is levied at the reduced rate of 27%； and if the annual taxable earnings are over RMB 100，000， the corporate income tax is levied at the rate of 33%.
　　10. Payable Income Tax
　　Line 50 refers to the amount resulting from line 48 multiplied by line 49 applicable tax rate.
　　The logical relation is： 50 = 48 x 49
　　Line 51 refers to the amount of corporate income tax that shall be made up or refunded in order to adjust the profit and loss of the previous year.
　　Line 52 refers to the corporate income tax that shall be made up for the investment earnings in China of the unit after its operational loss is covered. The unit having no investment in China does not need to fill up this line.
　　Line 53 refers to the corporate income tax that shall be made for the investment earnings abroad of the unit after its operational loss is covered. The unit having no overseas investment does not need to fill up this line.
　　Line 54 refers to the unpaid corporate income tax payable at the beginning of the period.
　　Line 55 refers to the paid-up corporate income tax.
　　11. Income tax to be paid （refunded） at the end of the period.
　　Line 56 refers to the term-end income tax to be paid （refunded）。
　　The logical relation is： 56 = 50 + 51 + 52 + 53 + 54 + 55
　　 State Administration of Taxation
　　 April 16，1999