The types of income not subject to enterprise income tax are

Types of income that are not subject to enterprise income tax include: 1. Income of public welfare nature; 2. Non-business income; 3. Income from tax incentives; and 4. Tax-exempt income.

According to the provisions of China's Enterprise Income Tax Law, enterprises shall fulfill their obligations to pay enterprise income tax in accordance with the law. However, under certain circumstances, enterprises can enjoy some preferential policies of income tax exemption or half tax reduction. First of all, income of public welfare nature refers to the income obtained from activities serving public **** interests, such as the income of the universal health insurance fund, the income of the social security fund and so on. This type of income is not subject to corporate income tax. Secondly, non-operating income refers to income derived from businesses not within the main scope of operation of the enterprise itself, such as investment income, income from the disposal of assets, and so on. This type of income is taxed according to actual income, and there is an option to calculate the tax liability separately. Again, tax preferential income refers to the income that meets the provisions of the national tax policy and enjoys tax preferential policies. For example, the research and development income of high-tech enterprises can enjoy enterprise income tax incentives, and the tax percentage of this type of income can be reduced. Finally, tax-exempt income refers to the income that can be exempted from paying enterprise income tax according to national laws and regulations. For example, part of the income of small and micro-profit enterprises can be exempted from enterprise income tax.

How do enterprises enjoy the tax exemption or half tax reduction policy for the above income types? Enterprises need to file their EIT returns in accordance with the relevant policies and provide appropriate documents and materials to prove the basis and facts for enjoying the tax exemption or half tax reduction policy.

Enterprise income tax is one of the taxes that enterprises have to face, but this tax can enjoy some preferential policies of tax exemption or half tax reduction under certain conditions. Enterprises need to make declarations according to specific circumstances to ensure that they legally enjoy the relevant policies.

Legal basis:

Article 31 of the Law of the People's Republic of China on Enterprise Income Tax The following incomes shall not be subject to enterprise income tax: (1) income of public welfare nature; (2) non-operating income; (3) income from tax incentives; (4) other incomes exempted from enterprise income tax by laws and regulations.