Reporter Wu Jing
Ali 150 million! Tencent 100 million, Pinduoduo 100 million, Byte 100 million, Xiaomi 50 million … Recently, the rainstorm in Henan Province has aroused national concern, and many enterprises have assisted disaster relief to help the affected people tide over the difficulties.
While enterprises are "out of the circle", there are also voices of doubt. Some people question "fraudulent donation", while others question that "donation is for tax avoidance or tax saving". Can charitable donations avoid tax? This is a problem. Today, the reporter connected with Song Shoucheng, the president of the Excellent Tax Research Institute, the former chief financial officer of China District of Alibaba, and the certified public accountant of China.
Corporate donations rushed to Henan,
Suspected of fraudulent donation or tax avoidance
When the flood struck, enterprises donated money, materials, "new infrastructure" and engineers. Among them, Alibaba donated 150 million yuan! Tencent, Pinduoduo, Didi and Byte each donated 100 million yuan, Xiaomi donated 50 million yuan, and Mi Xue Ice City donated 22 million yuan …
It is particularly worth mentioning that Hongxing Erke, an enterprise that has long faded out of people’s sight, directly donated 50 million yuan to Henan disaster relief, which immediately attracted a lot of attention. Online and offline products were in short supply and even sold out directly online. Hongxing Erke’s boss and anchor advised everyone to "consume rationally" during the live broadcast.
In order to support Henan’s flood fighting and disaster relief, "head anchors" have also given generously. On July 21st, Li Jiaqi and Viya, well-known e-commerce anchors, donated 1 million yuan and 2 million yuan to Zhengzhou, Henan respectively. On the same day, Simba, the founder of Xinxuan Group, donated 20 million yuan to Henan Charity Federation, and organized a batch of materials worth 6 million yuan to leave for Henan overnight. Subsequently, the anchors of Xinxuan Group also made generous donations, with a total donation of nearly 2 million yuan.
While Hongxing Erke succeeded in "fire out of the circle", there were also voices of doubt. Some people question "fraudulent donation", while others question that "donation is for tax avoidance or tax saving". For example, some netizens questioned Hongxing Erke’s donation of 50 million materials: "Has Hongxing Erke’s money arrived? I can’t see it in the public accounts! "
In this regard, the donated institutions One Foundation and Zhengzhou Charity Federation issued statements one after another, and Hongxing Erke also responded that "some materials have been distributed, and we will fulfill our donation commitments one after another according to the needs of the two charities. Please don’t deify Hongxing Erke. I hope everyone can pay more attention to frontline disaster relief personnel. "
Can charitable donations avoid tax?
This is a question.
"Enterprises that donate a lot are all for tax avoidance." In response to many questions questioned by netizens, the reporter connected Song Shoucheng, the president of the Excellent Tax Research Institute, the former financial director of China District of Alibaba, and a certified public accountant in China.
Song Shoucheng said that according to the Enterprise Income Tax Law of People’s Republic of China (PRC), enterprises use public welfare social organizations or people’s governments at or above the county level (including the county level) and their constituent departments and directly affiliated institutions for public welfare donations, and the part within 12% of the total annual profits is allowed to be deducted when calculating taxable income; The portion exceeding 12% of the total annual profit shall be deducted from the taxable income within three years after the carry-over.
"That is to say, whether it is an individual or a company, as long as it meets the conditions, charitable donations can indeed offset taxes and save taxes. Encouraging companies and individuals to participate in charitable donations through tax policies is one of the means for the state to promote a harmonious society. "
He also said, for example, if a company’s pre-tax profit this year is 10 million, and if it donates 5 million for public welfare, it can deduct no more than 12% of its pre-tax profit that year, that is, 1.2 million (10 million *12%). In that year, the enterprise income tax should be calculated at 8.8 million (10-1.2 million), which is 2.2 million (8.8 million *25%). “The tax cost without donation is 10 million * 25% = 2.5 million, which seems to save 300,000 yuan, but if the donated money is added, the cost is much greater than this figure."
The charity donation was 5 million yuan, and 1.2 million yuan was deducted in that year. What about the remaining 3.8 million yuan? "The remaining quota is still valid in the next three years. If the company’s pre-tax profit is still 10 million next year, it can still deduct 1.2 million without donations until the deduction is used up or expires in three years. "
Of course, if an enterprise donates cash and articles for poverty alleviation in the targeted poverty-stricken areas or for dealing with the pneumonia epidemic in novel coronavirus, it is allowed to deduct the taxable income of enterprise income tax according to the facts.
The difference between individual charitable donations is that they can deduct no more than 30% of the taxable income. Through public welfare organizations, people’s governments at or above the county level and their departments and other state organs, charitable donations to education, poverty alleviation and poverty alleviation can be deducted in accordance with the relevant provisions of the Individual Income Tax Law when calculating the taxable income, and can be deducted 100%.
Data Map: Song Shoucheng, Dean of Excellent Tax Research Institute and former chief financial officer of Alibaba China.
Someone wants to ask, how to calculate those donated materials? For example, the 20 million yuan donated by Hongxing Erke to One Foundation includes 2 million yuan in cash and 18 million yuan in materials. "Cash is easy to understand, that is, the same amount of money. What many people misunderstand is the materials. Generally speaking, the donated institution (unit) determines the value of the goods according to the invoice of the purchased materials presented by the donor. 18 million yuan of materials corresponds to an invoice of 18 million yuan. "
In Song Shoucheng’s view, donating materials often costs more than money. "Do you think about it, 10 million yuan is enough to call the donor institution, but the materials need to be transported, loaded and unloaded, and these are all costs. People’s hearts are not as bad as they think. Public welfare helps to establish corporate image, improve corporate reputation and increase product sales, which is more about corporate social responsibility.. "
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