What Is Donor Acknowledgement?

Acceptance of donations refers to the types of fixed assets that enterprises accept from domestic and foreign local governments, social organizations, or individuals. When entering accounts, the price should be determined by using relevant invoices or referring to similar fixed assets in the market, plus the costs that should be borne by the enterprise. If the donated is used fixed assets, it should also estimate its newness and oldness, and record it in the "capital reserve" account according to its net value. The "capital reserve" account is the owner's equity account and is used to calculate the capital reserve obtained by the enterprise. .

Accept donation

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Acceptance of donations refers to the types of fixed assets that enterprises accept from domestic and foreign local governments, social organizations, or individuals. When entering accounts, the price should be determined by using relevant invoices or referring to similar fixed assets in the market, plus the costs that should be borne by the enterprise. If the donated is a used fixed asset, it should also be estimated as new and old, and recorded in "

Advantages: ^[1]

(1) Assets that accept non-cash donations ^[1]

Prior to January 2008, an enterprise accepting donated assets shall recognize the booked value determined in accordance with the tax law as donated income, incorporate it into current taxable income, and calculate and pay corporate income tax. However, the amount is large and can be counted into taxable income in 5 years. After January 1, 2008, Article 21 of the "Implementation Regulations of the Enterprise Income Tax Law" stipulates that the donation income referred to in Article 6 (8) of the Tax Law means that the enterprise accepts voluntary contributions from other enterprises, organizations and individuals And free monetary or non-monetary assets. When accepting donated income, the realization of income shall be recognized when the donated assets are actually received. ^[2]