In April 12th, the State Administration of Taxation promulgated the "cost reduction" for coal mine enterprises and the safety production costs of enterprises in high-risk industries. Corporate income tax Notice of tax deduction. According to the requirements of the notice, the actual expenses incurred by the coal mine enterprises and the actual expenses incurred in the production of safe production are income expenses, which can be deducted directly as the cost of the current period. Those that belong to capital expenditures should be included in the relevant asset costs, and the depreciation or amortization expenses should be deducted before tax according to the provisions of the enterprise income tax law. In accordance with the relevant provisions, enterprises should not deduct the cost of maintenance and production safety before tax. Announcement extraction not yet used Maintenance fee And the cost of security is applied to deduct the cost and the cost of safe production actually occurred in the year after the implementation of this notice. There is still a balance, which will continue to be used to deduct the actual cost of the subsequent year. Until the balance is zero, the enterprise can execute it according to the first provision of this announcement. The notice has been implemented since 1 May.

　
Change of tax law " Invisible profit exposure "Increase enterprise tax burden To reduce the cash flow, the impact is negative. Before the coal companies could make use of more safety and maintenance costs, increase the cost and reduce the income tax expenses, the new tax policy would increase the actual income tax paid by the company and reduce the company's cash flow. Due to the fact that the accounting policy has not been changed at present, there will be a difference between the taxable income and the total profit of the enterprise. The enterprise will use the "deferred income tax assets" project to deal with the differences in the income tax between the accounting law and the tax law, and will not affect the total profit and net profit of the company. However, as the actual income tax increases, the cash flow decreases, and the overall impact is negative.

The more taxes that have not been used, the more the actual income tax is paid. According to this announcement, the safety and hardship fees that have been raised but not yet used are used to offset the actual cost of the year before the balance is 0. It means that the more unsafe and harder the cost is, the more the actual income tax expense will be needed in the future. The top 5 listed companies are Datong coal industry, Lu'an ring energy, Pingdingshan Coal Group, Yangxin energy and Pan Jiang group.

If the accounting standards are adjusted with the tax law, the net income of enterprises will be increased and the cash flow will be reduced. The total profit, income tax and net profit of the coal enterprises will increase at the same time as the accounting policy is adjusted while the cost of security and the cost of maintenance is greater than the actual use. However, the increase in the actual income tax and the corresponding cash flow, and the larger the difference between the actual and the actual income, the higher the profit will be. Its impact and processing methods are basically the same as those of accounting policies at the end of 8 (refer to our report "accounting for safety costs and so on: short and long space 20090109"). After adjusting the profit base of 10 years, the top 5 companies that return profits to a larger extent are Lu'an annulus, Pingdingshan coal, Yangxin, Datong Coal and Jizhong energy. If the accounting profit is increased and the market is understood as positive, the coal sector rose by 40% in the month and a half after the adjustment of accounting policies in December 26, 2008. Lu'an annulus, the Pingdingshan coal company, the state owned Yangxin energy and Datong coal industry rose the top. It is recommended to pay close attention to changes in accounting policies.