Pre Tax Deduction For Securities Industry Reserves

Stock exchange risk funds and futures risk reserves are allowed to be deducted before the enterprise income tax.

The notice said that the Shanghai and Shenzhen stock exchanges, which charge 20% of the handling charge and 10% of the annual fee of the stock exchange, will be allowed to deduct the enterprise income tax before the amount of the net assets of each fund is less than 1 billion yuan. The securities settlement risk fund extracted by the Shenzhen branch of the China securities registration Clearing Corp and the Shenzhen branch, which is extracted from 20% of the Clearing Corp's business income of the securities registration, will also be allowed to deduct the enterprise income tax before the amount of each fund's net assets less than 3 billion yuan.

The notice said that the Shanghai futures exchange, the Dalian commodity exchange, the Zhengzhou commodity exchange and the China Financial Futures Exchange, respectively, were required to collect the risk reserve from 20% of the income collected from the members of the China Financial Futures Exchange, which was allowed to be deducted from the enterprise income tax before the balance of the risk reserve reached the relevant provisions. The futures investor protection fund, which was paid by 3% of the paction fee charged to the Futures Company members, was allowed to be deducted before the enterprise income tax before the total amount of the fund reached the relevant provisions.

Editor in chief: Du Jun