According to the Ministry of Finance Notice of the State Administration of Taxation on Issues Concerning the Implementation of the Preferential Catalogue of Enterprise Income Tax for Special Equipment for Environmental Protection and the Preferential Catalogue of Enterprise Income Tax for Special Equipment for Energy Saving and Water Saving and the Preferential Catalogue of Enterprise Income Tax for Special Equipment for Production Safety2008:48No.) stipulates: 

Enterprise self2008years1month1The purchase and actual use of special equipment for environmental protection, energy saving and water saving and production safety listed in the Catalogue from date to date may be based on the amount of investment in special equipment10%The enterprise income tax payable in the current year shall be offset; Where the amount of tax payable by an enterprise is insufficient for tax credit in the current year, it may be carried forward to subsequent years, but the period of carry-over shall not exceed5Last tax year.

For example, an enterprise in2020Annual profit, total amount of profit200Ten thousand, need to pay200*25%=50Ten thousand income tax. At the time of tax settlement of the enterprise, the enterprise is in2020Purchase environmental protection, energy-saving, water-saving and safe production equipment during the annual operation period100Ten thousand yuan. Then according to the relevant regulations, the enterprise can deduct100wan*10%=10Ten thousand corporate income tax. Actual tax paid50wan-10wan=40Ten thousand.

If an enterprise is in2020Annual profit, the total amount of profit10Ten thousand, need to pay10*25%=2.5Ten thousand income tax. At the time of tax settlement of the enterprise, the enterprise is in2020Purchase environmental protection, energy-saving, water-saving and safe production equipment during the annual operation period100Yuan, the enterprise can deduct100wan*10%=10Ten thousand corporate income tax. The enterprise in the business income tax settlement, can be deducted2.5Ten thousand income tax, surplus7.5Ten thousand yuan can be carried forward5Last tax year.

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