1. Deduction items: 1. Public welfare donations: Public welfare donation expenditures incurred by enterprises within 12% of the total annual profits are allowed to be deducted when calculating taxable income.

Public welfare donations refer to donations made by enterprises through public welfare social groups or people's governments at or above the county level and their departments for public welfare undertakings stipulated in the "Public Welfare Donation Law of the People's Republic of China".

2. Wage and salary expenditures: Reasonable wages and salary expenditures incurred by the enterprise are allowed to be deducted.

Wages and salaries include basic wages, bonuses, allowances, subsidies, year-end salary increases, overtime wages, and other expenses related to the employee's appointment or employment.

It does not include the enterprise's employee welfare fees, employee education funds, labor union funds, and social insurance premiums such as pension insurance premiums, medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums, and housing provident funds.

For state-owned enterprises, their wages and salaries must not exceed the limit set by the relevant government departments; the excess shall not be included in the total wages and salaries of the enterprise, nor may it be deducted when calculating the enterprise's taxable income.

"Reasonable wages and salaries" follow the following principles: (1) The enterprise has formulated a relatively standardized employee wage and salary system; (2) The wage and salary system formulated by the enterprise is in line with industry and regional standards; (3) The wages and salaries paid by the enterprise in a certain period of time

Wages and salaries are relatively fixed, and adjustments to wages and salaries are carried out in an orderly manner; (4) The enterprise has fulfilled its obligation to withhold and remit personal income tax on the actual wages and salaries paid in accordance with the law.

(5) The arrangement of wages and salaries is not for the purpose of reducing or evading taxes; 3. Social insurance expenditures (1) Basic insurance: Enterprises pay for employees in accordance with the scope and standards stipulated by the relevant competent departments of the State Council or the provincial people's government.

Basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and other basic social insurance premiums and housing provident funds are allowed to be deducted.

(2) Supplementary medical care and supplementary pension insurance: In accordance with relevant national policies and regulations, the enterprise pays supplementary pension insurance premiums and supplementary medical insurance premiums to all employees who serve or are employed by the enterprise, and shall not exceed 5% of the total employee wages.

The portion above will be allowed to be deducted when calculating taxable income; the portion in excess will not be deducted.

(3) Other insurance: personal safety insurance premiums and property insurance premiums will be deducted according to the actual conditions.

In addition, in addition to the personal safety insurance premiums paid by the enterprise for employees in special types of work in accordance with relevant national regulations and other commercial insurance premiums that can be deducted according to the provisions of the financial and taxation authorities of the State Council (compulsory insurance: such as aviation accident insurance), the enterprise is an investor or employee.

Commercial insurance premiums paid shall not be deducted.

4. Borrowing costs: Reasonable borrowing costs incurred by an enterprise in its production and operation activities that do not require capitalization are allowed to be deducted.

(1) Inter-enterprise borrowings: The following interest expenses incurred by enterprises in the production and operation activities are allowed to be deducted: 1) Interest expenses of non-financial enterprises borrowing from financial enterprises, interest expenses of various deposits and inter-bank lending interest expenses of financial enterprises, enterprise

Interest expenses on approved issuance of bonds; 2) Interest expenses on loans borrowed from non-financial enterprises by non-financial enterprises shall not exceed the amount calculated based on the interest rate on similar loans of financial enterprises in the same period.

(2) The enterprise borrows money from natural persons: The interest expenses incurred by the enterprise on borrowing from shareholders or other natural persons, internal employees or other persons related to the enterprise shall not exceed the amount calculated based on the interest rate of similar loans of financial enterprises in the same period.

Deductions allowed.

In addition, for the interest expenses actually paid by the enterprise to related parties, the ratio of debt investment from related parties to equity investment is: for financial enterprises, it is 5:1; for other enterprises, it is 2:1. 5. Several expenses: (1

) Employee welfare expenses: The amount of employee welfare expenses incurred by the enterprise that does not exceed 14% of the total wages and salaries is allowed to be deducted.

(2) Union funds: Union funds allocated by the enterprise, which do not exceed 2% of total wages and salaries, will be deducted before corporate income tax with the "Special Receipt for Union Fund Income" issued by the trade union organization.

(3) Employee education expenses: The amount of employee education expenses incurred by the enterprise that does not exceed 2.5% of the total wages and salaries is allowed to be deducted; the excess is allowed to be carried forward for deduction in subsequent tax years.

Note: The staff education expenses of software production enterprises can be deducted based on the actual amount incurred when calculating taxable income.

The employee education expenses incurred by recognized technologically advanced service enterprises, which do not exceed 8% of total wages and salaries, are allowed to be deducted when calculating taxable income; the excess is allowed to be carried forward for deduction in subsequent tax years.

(4) Business entertainment expenses: Business entertainment expenses incurred by an enterprise related to production and operation activities shall be deducted at 60% of the amount incurred, but the maximum shall not exceed 5‰ of the sales (business) income of the year.

(5) Advertising expenses: Qualified advertising expenses and business promotion expenses incurred by an enterprise, which do not exceed 15% of the sales (operating) income of the current year, are allowed to be deducted; the excess is allowed to be carried forward for deduction in subsequent tax years.

Note: The advertising expenses and business promotion expenses incurred by cosmetics manufacturing and sales, pharmaceutical manufacturing and beverage manufacturing enterprises are allowed to be deducted if they do not exceed 30% of the sales (operating) income of the current year; the excess is allowed to be carried forward for deduction in subsequent tax years.

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Tobacco advertising and business promotion expenses incurred by tobacco companies shall not be deducted when calculating taxable income.