Core Viewpoint - The article discusses the taxation policies and procedures related to non-monetary asset investments by enterprises, emphasizing the recognition of income, tax deferral policies, and necessary documentation for compliance [5][10][15]. Summary by Sections Non-Monetary Assets - Non-monetary assets refer to assets other than cash, bank deposits, accounts receivable, and bonds held to maturity [2]. Income Recognition Timing - Enterprises should recognize the income from the transfer of non-monetary assets when the investment agreement becomes effective and the equity registration is completed. If the registration is not completed within 12 months, income should be recognized at the agreement's effective date [5]. Tax Deferral Policies - If an enterprise transfers equity or recovers investments within five years of the non-monetary asset investment, it must cease the tax deferral policy and pay corporate income tax on unrecognized transfer income during the deferral period in the year of transfer or recovery [6]. - If an enterprise is dissolved within five years of investment, it must also stop the tax deferral policy and pay corporate income tax on unrecognized transfer income in the year of dissolution [6]. Reporting Methods - Enterprises opting for tax treatment under the relevant tax authority's announcement must report non-monetary asset transfer income during the deferral period in their annual corporate income tax returns [7][8]. Calculation Methods - Enterprises must evaluate non-monetary assets and calculate the transfer income based on the fair value minus the tax basis. The tax basis for the equity obtained from the investment is the original tax cost of the non-monetary assets [10]. Example Calculation - An example illustrates that if Company A invests machinery valued at 10 million yuan (with a tax basis of 8 million yuan) for a 20% stake in Company B, the taxable income would be 2 million yuan, leading to an annual tax payment of 100,000 yuan over five years [11][12]. Documentation Retention - Companies must retain documentation such as investment contracts, fair value assessment reports, and tax basis explanations for non-monetary assets for compliance and audit purposes [13]. Policy Basis - The article references specific tax policies and announcements from the Ministry of Finance and the State Administration of Taxation regarding non-monetary asset investments [15].