1. Transportation and phone allowance
   
   According to Chinese Corporate Income Tax Law, the allowance is pre-tax deductable if it is stipulated in the employee salary system and paid together with the salaries. The allowance shall meanwhile comply with the provision of ‘reasonable wages and salaries’ issued by the STA. Other allowance shall follow the deduction limit as welfare expenses.
   
   Therefore, the transportation and phone allowence paid together with the salary are allowed to be deducted before CIT based on the actual amount. For the transportation and phone allowence need to be reimbursed with provision of invoices shall be booked as employee’s welfare and be deducted when calculated corporate incomes with limited amount.
   
   
2. Entertainment, fitness and travel expenses for senior executives
   
   According to General Rules of Enterprise Finance, enterprises shall not undertake personal expenses of entertainment, fitness, tourism, shopping, gifts, commercial insurance, securities, equity, collections and others. Such expenses shall not be accounted, nor be deducted when calculated corporate incomes.
   
   
3. Reimbursement of academic education for employees
   
   According to Suggestions on the Management of Withdrawals and Use on Employee Education Funds issued  by MoF and All-China FoTU, employees shall undertake the expenses of academic education and in-service education, which shall not take up the employee education funds.
   
   Therefore, the expenses of employee’s academic education is not allowed to be pre-tax deducted as employee education funds when calculated corporate income.
   
   
4. Expenses for management training abroad
   
   The one-time expense of large amount for senior management overseas training and investigation shall be accounted as administration expense. It is not counted into employee education funds.
   
   
5. Expenses for professional books
   
   The expenses can be accounted as employee education funds if the books purchased are to improve the professional skills of the employees. While it is more appropriate to account as office expenses if the books are reference books for solving problems happened  in workplaces.
   
   
6. Expenses for employee uniforms
   
   According to Chinese Corporate Income Tax Law, the expenses for employee uniforms can be deducted when calculated corporate incomes, if the uniforms are made and required to be dressed at work by enterprise. The expenses can be regarded as reasonable expenditure if they meet the followings:
   

   The uniform represents the nature and requirements of work; The uniform is made by the enterprise; Employees are required to wear the uniform at work.

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