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.