How to account for the donation income obtained by the school?

The part of the public welfare donation expenditure incurred by the enterprise within 12% of the total annual profit is allowed to be deducted in the calculation of taxable income. Article 51 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that public welfare donations refer to donations made by enterprises for public welfare undertakings stipulated in the Public Welfare Donation Law of the People's Republic of China through public welfare social organizations or people** at or above the county level and their departments. Article 52 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that public welfare social organizations refer to social organizations such as associations and charitable organizations that meet the following conditions at the same time:

1) Registered in accordance with law and having the status of a legal person; (2) The purpose is to develop public welfare undertakings, and not for profit; (3) All assets and their appreciation are owned by the legal person; (4) The income and operating balance are mainly used for undertakings that meet the purpose for which the legal person was established; (5) The remaining property after termination does not belong to any individual or for-profit organization; (6) Do not engage in business unrelated to the purpose for which it was established; (7) Have a sound financial accounting system; (8) Donors do not participate in the distribution of social group assets in any form; (9) Other conditions stipulated by the competent departments of finance and taxation in conjunction with the civil affairs departments and other registration management departments, first of all, you have to see whether your donation has passed through public welfare social groups or financial departments, if you donate directly to the school, it is not deductible, if you meet the conditions, the part within 12 of the total annual profit can be deducted and recorded in the non-operating expenses.

The credit side of the "Donation Income" account reflects the actual amount of donation income incurred in the current period. At the end of the accounting period, the current credit amount of the detailed account of "unrestricted income" in the account shall be transferred to the account of "unrestricted net assets", and the current credit amount of the detailed account of "restricted income" in the account shall be transferred to the account of "restricted net assets". There should be no balance on the account after the period-end carry-over.

According to the Small Business Accounting Standards, this is clearly defined as "non-operating income". At the same time, there is also the specific meaning of the credit of the "donation income" account, for the donation income obtained by the school, it can be regarded as "non-operating income", fixed assets - fixed assets, non-operating income - income from receiving donations.

Write down every expense, and if we have some poor students who need to apply for some subsidies, it can also give them some enough support to ensure that they can successfully complete their studies.

You can record the name of the donor, **, and put the amount in a ledger and then write the total.

Donation income refers to the monetary assets and non-monetary assets received by enterprises from other enterprises, organizations or individuals free of charge. Receipt of donated income is recognized as the realization of income according to the date of actual receipt of donated assets.

The donation income obtained by the school is included in the non-operating income, and the details of the donation are attached to the voucher.

It must be used in the construction of the school, as well as in the education of students, so that if you can make accounts, you must make every account very fine, so that people can see it clearly at a glance.

Donation income is recorded as non-operating income, but donation commitments and labor donations to non-governmental non-profit organizations are not recognized.

Article 68 of the Accounting Standards for Small Enterprises Non-operating income refers to the net inflow of economic benefits formed by the non-routine production and operation activities of small enterprises, which should be included in the profit or loss for the current period, which will lead to an increase in the owner's equity and have nothing to do with the owner's capital investment.

The amount of donated income obtained by the school can be counted and distributed to students who are poor or have excellent academic performance.

It should be marked in each donation that it should be recorded each time so that it can be clear and clear at the end of the summary.

There is a clear provision for this as "non-operating income". At the same time, there is also the specific meaning of the credit side of the "Donation Income" account.

If the school receives the donation income, I think it is possible to set up a special public account, so that everyone knows where the donated income will be spent, so that the donation is valuable.

Hello dear, I'm glad to answer your question Li Raidun: <>

According to the relevant provisions of the notice of the Ministry of Finance on strengthening the management of non-tax revenue (Cai Zong 2004 No. 53), the monetary income received in the name of non-fixed letter donations received in the name of all levels, national institutions, public institutions under the management of civil servants, social groups and other organizations with the functions of ** is a non-tax income and should be handed over to the finance in accordance with the regulations. **Non-tax income - donation income does not include monetary income from targeted donations, income from donations in kind, and donation income received in the name of public institutions that do not implement the management of civil servants, social groups, enterprises, individuals or other non-governmental organizations that do not perform the functions of **.

Legal analysis: Colleges and universities do not need to pay taxes on the income they receive from donations. The following income from a non-profit organization is tax-exempt:

1) Income from donations from other units or individuals;

2) In addition to the financial appropriation provided for in Article 7 of the Enterprise Income Tax Law of the People's Republic of China, other subsidy income, but excluding the income obtained from the purchase of services;

3) Membership dues collected in accordance with the provisions of the civil affairs and finance departments at or above the provincial level;

4) Interest income from bank deposits derived from non-taxable income and tax-exempt income;

5) Other revenues stipulated by the Ministry of Finance and the State Administration of Taxation.

Legal basis: Law of the People's Republic of China on Donations to Public Welfare Undertakings

Article 4: Donations shall be voluntary and gratuitous, and forcible or disguised apportionment is prohibited, and for-profit activities must not be engaged in in the name of donations.

Article 5: The use of donated assets shall respect the wishes of the donors and be in line with public interest purposes, and the donated assets must not be diverted for other purposes.

Article 6 Donations shall comply with laws and regulations, shall not violate social morality, and shall not harm the public interest and the lawful rights and interests of other citizens.

Article 7: Assets donated by public interest social groups and their appreciation are to be protected by state law, and must not be embezzled, misappropriated, or damaged by any unit or individual.

Donation expenses are directly included in the current profit or loss in the accounting and included in the "non-operating expenses" account. The following is the accounting procedure for corporate donation expenditures:

External donations of cash, bank deposits, etc

Borrow: Non-operating expenses.

Credit: cash on hand bank deposits.

Donated goods:

Borrow: Non-operating expenses.

Credit: Inventory of goods.

Tax Payable – VAT payable (output tax).

External donations are manifested as giving one's own property to relevant stakeholders free of charge, and the donated assets include cash assets and non-cash assets. When the donation business occurs, the total book value of the donated assets and the relevant taxes and fees payable shall be included in the "non-operating expenses" of the current period to offset the accounting profit of the current period. Because the donation does not cause an increase in the owner's equity, but only the outflow of the economic interests of the enterprise, the realization of income is not recognized in the accounting.

Corporate donations.

According to the relevant provisions of the new accounting standards, the donation income obtained by the school should be accounted for through the non-operating income account.

Accounting processing of donations received by the school.

The income from the donation of sails obtained by the school can be regarded as "non-operating income".

Borrow: Fixed Assets - XX Fixed Assets.

Credit: Non-operating income – income from receiving donations.

Note that the non-operating income here refers to the net inflow of economic benefits formed by the non-routine production and operation activities of small enterprises, which should be included in the current profit or loss, which will lead to an increase in the owner's equity and have nothing to do with the owner's capital investment.

Accounting entries for accepting cash donations.

Borrow: cash on hand.

Credit: Non-operating income.

Accounting treatment of in-kind donations.

External donations of goods shall be accounted for according to deemed sales

Borrow: Non-operating expenses.

Credit: Inventory of goods.

Tax Payable – VAT payable (output tax).

Can charitable donations be deducted before tax?

Generally speaking, donation expenses are not reasonable expenses directly related to the acquisition of income, and in principle, they cannot be deducted before tax. However, Article 9 of the Enterprise Income Tax Law stipulates that the part of the public welfare donation expenditure incurred by an enterprise within 12% of the total annual profit is allowed to be deducted in the calculation of taxable income.

Therefore, if the donation expenditure of an enterprise in a tax defense year meets the relevant conditions for public welfare donations, the part within 12% of the total annual profit of the car is allowed to be deducted when calculating the taxable income.

Colleges and universities do not need to pay taxes on the income they receive from donations. The following income from a non-profit organization is tax-exempt:

1) Income from donations from other units or individuals;

2) In addition to the financial appropriation provided for in Article 7 of the Enterprise Income Tax Law of the People's Republic of China, other subsidy income, but excluding the income obtained from the purchase of services;

3) Membership dues collected in accordance with the provisions of the civil affairs and finance departments at or above the provincial level;

4) Interest income from bank deposits derived from non-taxable income and tax-exempt income;

5) Other revenues stipulated by the Ministry of Finance and the State Administration of Taxation.

The relevant legal basis for the association of this confession].

Law of the People's Republic of China on Donations to Public Welfare Undertakings

Voluntary and gratuitous donations should be made in advance, and forcible or disguised apportionment is prohibited, and profit-making activities must not be engaged in in the name of donations.

Article 5: The use of donated assets shall respect the wishes of the donors and be in line with public interest purposes, and the donated assets must not be diverted for other purposes.

Article 6: Donations shall comply with laws and regulations, must not violate social morality, and must not harm the common interests of the public and the legitimate rights and interests of other citizens.

Article 7: Assets donated by public interest social groups and their appreciation are to be protected by state law, and must not be embezzled, misappropriated, or damaged by any unit or individual.