Legal Study On The Pre-tax Deduction Of Enterprise Non-monetaryassets’s Charitable Donation

Compared with cash charitable donation,the non-monetary assets havetheir incomparable advantages. However, due to the imperfect current taxdeduction legal system on the non-monetary assets donation, non-monetaryassets’s value is difficult to determine and the deductions have complexfeatures, resulting in the differences of donation allowed non-monetary assetstypes, the determining methods and the corporate income tax deductionstandards. This not only affects the choice of charitable donation behavior butalso contrary to the basic tax principle of fairness and efficiency. In face ofthe inadequacies of China’s tax system, the tax system of the Westerndeveloped countries have their advantages. China should learn theirsuccessful experience in public welfare donation.We should learn theseexperience in our national conditions. We should follow the way of fair valuemeasurement for non-monetary value in charitable donation.What’s more, some non-monetary assets are not suitable for donation, some non-monetaryassets’ fair value need special attention.The article focuses on problems existing in our corporatenon-monetary assets charitable donation system, analyses feasibilities ofdifferent non-monetary assets in types. On premise of the range ofnon-monetary assets which could have a tax deduction are determined,thearticle explains the value determining rule. Finally the article advices theimproved methods of corporate non-monetary assets charitable donation taxlaw.In perspective of the non-monetary assets value determining,the articlewants to explore the improve methods of our current tax law system andmakes contributions to social welfare.