According to the Notice on Issues Regarding the Corporate Income Tax Policy for Fiscal Funds, Administrative and Institutional Fees, and Government Funds issued by the Ministry of Finance and the State Administration (Cai Shui [2008] No. 151), fiscal funds, administrative and institutional fees, and government funds obtained by enterprises shall be handled as follows when calculating and paying corporate income tax.
1. Fiscal funds refer to fiscal subsidies, grants, loan interest subsidies, and other types of special fiscal funds that enterprises obtain from the government and its relevant departments, including directly exempted Value-Added Tax (VAT) and immediately levied and refunded, levied first and then refunded, or levied first and then returned taxes of various kinds, but do not include funds that enterprises acquire in accordance with regulations...