Can enterprises deduct tax for donating epidemic prevention materials?

Enterprises and individuals who donate cash and goods in response to the novel coronavirus epidemic can enjoy the tax reduction and exemption policy, but they need to donate through legally established and registered public welfare social organizations, people's governments at or above the county level or directly to hospitals that undertake the task of epidemic prevention and control.

Enterprises donate cash and articles for epidemic prevention through public welfare social organizations or state organs such as people's governments at or above the county level and their departments, and directly donate epidemic prevention articles to hospitals that undertake epidemic prevention and control tasks, allowing full deduction when calculating taxable income. However, it should be noted that only epidemic prevention materials can be directly donated to hospitals that undertake the task of epidemic prevention and control, and the donation acceptance letter issued by the hospital is deducted before tax. Direct cash donations are not allowed to be deducted before tax according to regulations. The cash and articles donated by enterprises and individuals to deal with the novel coronavirus epidemic through public welfare social organizations or state organs such as people's governments at or above the county level and their departments are allowed to be deducted in full when calculating the taxable income of enterprise income tax or individual income tax. Donations accepted by state organs and public welfare social organizations shall be used exclusively to deal with the novel coronavirus epidemic and shall not be used for other purposes.

While encouraging donations, the state has provided relatively perfect preferential policies for tax reduction and exemption for donated units, individuals or organizations, but it has also standardized donation activities, defined the rights and obligations of donors, recipients and beneficiaries, prevented illegal interests from being sought in the name of public welfare undertakings, and promoted the healthy and orderly development of public welfare undertakings.

Legal basis: Article 53 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC), if the public welfare donation expenditure incurred by the enterprise in the current year and carried forward from previous years does not exceed 65,438+02% of the total annual profit, it is allowed to be deducted.