Enterprise Income Tax Law About Enterprise Of Non-monetary Assets Donated Pre-income-tax Deduction Prescribed Study

Enterprise Income Tax Law stipulates that the companies must take the social responsibility. And companies which social responsibility to take can get the tax deduction. But the provisions about the non-monetary assets contributions of enterprises shall not perfect, so there are many problems and disputes in the practice. While the earthquake in Wenchuan in 2008 and the drought in the Southwest in 2010, many businesses assumed their social responsibility by donating money and goods. But most of them cannot fully enjoy the preferential tax deduction. The most important reason for this is that the enterprise income tax law is lack of provisions about tax deduction of non-monetary assets donations for individual. It leads that enterprises cannot be able to get the real value of assessments. And whether self-produced products to charity should be included in the income is no legal basis. The application process of tax deduction also is quite complicated. For these reasons most of companies which had donated gave up the tax deduction.By legal analysis and economic analysis, this paper analyzed the shortcomings of the problem and the resulting consequences, and suggested amendments to the existing problems. This paper is divided into five main parts. The first part describes the concept of the non-monetary assets contribution and some provisions of tax deduction in enterprise income tax law. The second part describes how to assess the value of the non-monetary assets. In accordance with the classification of non-monetary assets types in the first part, we can choose the assessment method. The third part discusses the Enterprises donate their self-produced products to charity whether it should be included in the revenue. Through both positive and negative views on the discussion, we can present on the solution to this problem. In the fourth part, we discuss three problems in the shared provisions between non-monetary assets donations and cash donations. By analyzing we can obtain the root causes of these problems and described their negative impact. Through written the main part of this paper we reached the conclusion in the fifth part. By comparative analysis of relevant legislation and combined with some examples to demonstrate, I proposed amendments to the law.