I. Accounting treatment of tax-exempt expenses:

1. The tax shall be added to the original value or reasonable value of the tax-free expenses and credited to the general expense account. The specific record format is as follows: tax payable (or related subjects such as labor fee and material fee payable)+cash, tax difference subject × tax-cash;

2. When an enterprise uses tax-free expenses, it shall offset the subject according to the reasonable value of the tax-free expenses paid. The specific offset format is as follows: general expense account-tax-exempt expense (reasonable value payment)+payable tax account.

Two, the accounting treatment of tax-free income:

When an enterprise generates tax-free income (or non-operating income), its entry format is: accounts receivable (the source of accounts is determined according to the contents of invoices)+other receivables (or cash), tax-free income (or non-operating income) × tax-free income (tax difference of invoice price)-other receivables (or cash);

When an enterprise uses tax-free income (or non-operating income), it shall deduct it according to the reasonable value of the income. The specific offset format is as follows: other receivables (or cash)-tax-free income (or non-operating income (reasonable value of income)+tax receivable account.

Tax-free income includes the following contents:

I. Interest income from debt.

National debt includes all kinds of national debt, special national debt and value-added national debt issued by the Ministry of Finance. National key construction bonds issued by the former State Planning Commission and financial bonds and various corporate bonds issued with the approval of the People's Bank of China.

Two, there are designated purposes to reduce or return the turnover tax.

According to the provisions of the tax law, the turnover tax reduced or refunded by enterprises designated by People's Republic of China (PRC) the State Council, Ministry of Finance and State Taxation Administration of The People's Republic of China is not included in the taxable income.

Three, not included in the profit and loss of subsidies.

According to the provisions of the tax law, countries such as subsidy income and other subsidy income obtained by enterprises, which are not included in profits and losses according to the provisions of the State Council, People's Republic of China (PRC), Ministry of Finance or State Taxation Administration of The People's Republic of China, can be deducted when calculating taxable income.