No.

Deduction Items

Standard of Deduction/Proportion of Limit

Remark

32

Unverified provision

Non-deductable

33

Depreciation of fixed assets

Deductable within the prescribed scope

Not exceed the minimum period of depreciation

34

Depreciation of productive biological assets

Deductable within the prescribed scope

10 years for woods, 3 years for livestock

35

Amortization of intangible assets

Amortization period not less than 10 years

General intangible assets

Amortizion based on the period stipulated by the law or contract

Intangible assets obtained from investment or purchase

Non-deductable

Goodwill created by the enterprise itself

Non-deductable

Intangible assets irrelated to the business operation

36

Long term deferred expense

Deductable within the limit amount

1. The amortization for reconstruction expenses of buildings that have been fully depreciated shall be apportioned according to the estimated useful life

2.  The amortization for reconstruction expenses of leased building shall be apportioned according to the estimated useful life

3. The amortization for fixed assets repair expenses shall be apportioned according to the estimated useful life

4. For other long-term deferred expenses, the amortization period shall not be less than 3 years

37

Organization costs

Deductable

Deduct one-time in the year of commencement of  operation or amortized as long term deferred expense

38

Amortization of low value articles

Actual amount

39

Audit and notarial fees

Actual amount

40

R&D expense

Additional deduction

Additional deduction is allowed in annual CIT declaration for incurred R&D expense within the prescribed sope

41

Taxes

Deductable

CIT and VAT can’t be deducted

42

Consulting and legal costs

Actual amount

43

Business trip expense

Actual amount

44

Meeting expense

Actual amount

Meeting minites and other supporting documents are required

45

Work dress expense

Actual amount

46

Transportation, installation, packing and other expenses

Actual amount

47

Printing expense

Actual amount

48

Courier and mail expense

Actual amount

49

Rental expense

Actual amount

50

Water and electricity expense

Actual amount

51

Heating/cooling costs

Calculated as welfare

Adjustment is needed when the welfare amount exceed the statutary standard

52

Fuel costs of vehicle and vessel

Actual amount

53

Allowances for employees for transportation and meal

Actual amount

54

Repair and maintenance fees

Actual amount

55

Security expense

Actual amount

56

Expenses of board of directors

Actual amount