Answer to Article 8 of the Enterprise Income Tax Law of People's Republic of China (PRC) (Order of the President of the People's Republic of China (No.63, 2007)), reasonable income-related expenses actually incurred by enterprises, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income. The Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) (the State Council Order No.512, 2007) refers to the unapproved reserve expenditure mentioned in Item (7) of Article 10 of the Enterprise Income Tax Law, which does not conform to the provisions of the financial and tax authorities in the State Council. The current income tax law stipulates that the expenses deducted before tax should follow the principle of actual occurrence, except those that can be deducted. For example, special funds for environmental protection and ecological restoration. If the enterprise as stipulated in Article 45 of the Regulations withdraws in accordance with the relevant provisions of laws and administrative regulations, it shall be allowed to deduct. If the above-mentioned special funds change after extraction, they shall not be deducted. The extracted water conservancy funds or other special funds belong to the special funds for environmental protection and ecological restoration extracted in accordance with the relevant provisions of laws and administrative regulations, and unused funds can also be deducted before tax. However, enterprises should be able to provide relevant provisions of laws and administrative regulations, such as the special funds for pollution prevention and control extracted in accordance with the Notice of the People's Government of Shandong Province on Issues Concerning the Establishment of Special Funds for Pollution Prevention and Control in Papermaking and Brewing Industries. Otherwise, it cannot be deducted before tax.