In addition to production costs (sales costs), the corporate income tax can deduct the following items: 01 Wage and salary expenses Reasonable wages and salary expenses incurred by the enterprise are allowed to be deducted based on the actual situation.

02 Employee Welfare Fees: Employee welfare expenses incurred by an enterprise, which does not exceed 14% of total wages and salaries, are allowed to be deducted.

03 Expenses incurred by an enterprise when accepting external labor dispatch. The actual expenses incurred by an enterprise when accepting external labor dispatch shall be deducted before tax in accordance with the regulations in two situations: the expenses directly paid to the labor dispatch company in accordance with the agreement (contract) shall be regarded as labor expenses.

Expenditures; expenses directly paid to individual employees shall be treated as salary expenses and employee welfare expenses.

Among them, the expenses related to wages and salaries are allowed to be included in the base of the enterprise's total wages and salaries, and serve as the basis for calculating the deduction of other related expenses.

04 Severance Compensation The company withdraws severance compensation for its employees in accordance with the company's financial system. When the annual corporate income tax is settled and settled, the tax adjustment will be made to the amount of the "accrued expenses" account for the current year until the employee leaves the company and actually receives it.

After severance compensation is paid, the company can deduct it before tax in accordance with regulations.

05 Trade Union Funds Union funds allocated by enterprises shall be deducted if they do not exceed 2% of total wages and salaries.

The trade union funds allocated by the enterprise must obtain legal and valid special receipts or collection vouchers for trade union funds before they can be deducted before tax in accordance with the law.

06 Employee Education Funds Starting from January 1, 2018, the employee education expenses incurred by the enterprise, which does not exceed 8% of the total wages and salaries, are allowed to be deducted when calculating the taxable income of corporate income tax; the excess amount is allowed to be taxed later.

Annual carryover deductions.

Scope of employee education funds: "Opinions on the Extraction and Usage Management of Enterprise Employee Education Funds" (Cai Jian [2006] No. 317) Special circumstances (1) Integrated circuit design companies and qualified software companies (independently developed by certified animation companies

, production of animation products) employee training expenses: calculated separately and deducted accordingly.

(2) Air crew training expenses such as pilot development fees, flight training fees, flight attendant training fees, and air security guard training fees actually incurred by an aviation company can be deducted as actual transportation costs of the aviation company.

(3) If a nuclear power generation enterprise’s training expenses for cultivating nuclear power plant operators are strictly separated from employee education funds and accounted for separately, they can be deducted as the enterprise’s power generation costs.

07 Social insurance premiums and other insurance premiums The basic social insurance premiums and housing provident funds paid by enterprises for employees that meet the prescribed scope and standards are allowed to be deducted according to the actual situation.

Personal safety insurance premiums paid by enterprises for employees in special types of work and commercial insurance premiums that comply with national regulations can be deducted.

According to the relevant national policies and regulations, the supplementary pension insurance premiums and supplementary medical insurance premiums paid by an enterprise for all employees who serve or are employed by the enterprise, and the portions of the supplementary pension insurance premiums and supplementary medical insurance premiums paid by the enterprise shall not exceed 5% of the total employee wages, shall be included in the calculation of taxable income.

Deductions will be allowed when the amount exceeds the limit; the excess amount will not be deducted.

08 When a property insurance enterprise participates in property insurance, the insurance premiums paid in accordance with regulations are allowed to be deducted.

09 Personal accident insurance premiums included in corporate travel expenses. Personal accident insurance premiums incurred by corporate employees taking transportation for business trips are allowed to be deducted when calculating taxable income.

10 Employers’ liability insurance, public liability insurance If an enterprise participates in employer’s liability insurance, public liability insurance and other liability insurances, the insurance premiums paid in accordance with regulations are allowed to be deducted before corporate income tax.

11 Interest expenses The interest expenses incurred by non-financial enterprises borrowing from financial enterprises, the interest expenses incurred by financial enterprises on various deposits and inter-bank lending, and the interest expenses incurred by enterprises on approved issuance of bonds can be deducted according to the actual circumstances; non-financial enterprises borrowing money from non-financial enterprises

Interest expenses that do not exceed the amount calculated based on the interest rate of similar loans of financial enterprises for the same period can be deducted according to the actual situation.