Core Viewpoint - The article discusses the treatment of fiscal subsidies and their implications for corporate income tax, detailing how these funds can be classified as non-taxable income and the conditions under which they can be deducted from taxable income [2][3][4]. Group 1: Definition and Classification of Fiscal Funds - Fiscal funds refer to financial support from the government, including subsidies, interest subsidies on loans, and various tax reductions, but exclude export tax rebates [2]. - National investment is defined as direct investments made by the state in enterprises, which increase the company's registered capital [2]. Group 2: Tax Treatment of Fiscal Subsidies - Fiscal subsidies can be classified as non-taxable income under certain conditions, as outlined in the relevant tax regulations [3]. - When fiscal subsidies are treated as non-taxable income, the expenses incurred from these funds can be deducted from taxable income [4]. Group 3: Reporting and Compliance - If a company does not utilize the fiscal funds within five years, the unspent portion must be included in taxable income in the sixth year [5]. - Companies must report fiscal subsidies during annual tax settlements based on their accounting treatment, either as other income or as non-operating income [6][7]. - Depending on whether the subsidies are treated as taxable or non-taxable income, companies must fill out the corresponding tax forms [8].