In accordance with the "Enterprise Income Tax Law of the People's Republic of China" and its implementation regulations, the matters concerning the pre-tax deduction of advertising expenses and business promotion expenses is hereby announced as follows:

1.	For cosmetics manufacturing or sales, pharmaceutical manufacturing and beverage manufacturing (excluding alcohol manufacturing) enterprises, advertising expenses and business promotion expenses that do not exceed 30% of the current year's sales (business) are allowed to be deducted; the excess is allowed to be carried forward for deduction in subsequent tax years.
2.	For  associated  enterprises  that  have signed an agreement on the sharing of advertising expenses and business promotion expenses (hereinafter referred to as the Sharing Agreement), the advertising expenses and business promotion expenses incurred by one of the parties that do not exceed the pre-tax deduction limited ratio of the sales (business) income of the year can be deducted from the enterprise , part or all of it can also be assigned to the other party for deduction in accordance with the  sharing agreement. When the other party calculates the pre-tax deduction limit of enterprise income tax for its own advertising expenses and business promotion expenses, it may exclude the advertising and business promotion expenses that have been assigned to the enterprise in accordance with the above methods.
3.	The tobacco advertising expenses and business promotion expenses of tobacco companies shall not be deducted when calculating the taxable income.
4.	This notice will be implemented from January 1, 2021 to December 31, 2025. "Notice of the Ministry of Finance and the State Administration Concerning Taxation on the Pre-tax Deduction Policy for Advertising Expenses and Business Promotion Expenses" Shui [2017] No. 41) shall be repealed from January 1, 2021.