No.

Deduction Items

Standard of Deduction /Proportion of Limit

Remark

9

Interset expense (borrow money from individuals)

Interest of loan of same type within the same period is deductable ( loan between non-related parties )

Sign a loan contract, interest of loan of same type within the same period can be deducted

Within 5 or 2 times of equity investment (Individuals of related relationship )

Actual amount ( Individuals of related relationship )

Provide documents to prove the transaction complies with the principle of independent transaction

10

Interset expense (Fails to pay full amount of capital within the prescribed time-limit)

Part of interest may not be deducted

Non-deductable interest= loan interest in current period *unpaid capital/loan amount in current period

11

Interagency payment of interest within a non-bank enterprise

Non-deductable

12

Housing provident fund

Actual amount

Deductabke within the prescribed scope

13

Fines, forfeited property losses

Non-deductable

14

Overdue fine of tax

Non-deductable

15

Sponsorship

Non-deductable

16

All kinds of social security contributions

Actual amount

Deductable within the prescribed scope

17

Supplementary pension insurance

5%

Gross payroll

18

Supplementary medical  insurance

5%

Gross payroll

19

Expenses irrelated to operating income

Non-deductable

20

Expenses incurred from use of paid with non-taxable income

Non-deductable

21

Special funds of environment protection

Actual amount

Accrued according to the regulations; once purpose of expense altered is non-deductable

22

Property insurance

Actual amount

23

Personal safety insurance for workers of special types of work

Deductable

24

Other commercial insurance

Non-deductable

Except deductable items as stipulated by the competent financial and tax authorities under the State Coucil

25

Rental for fixed assets

Deduct evenly based on the lease period

Operation lease

26

Expenses for labour protection

Actual amount

Reasonable

27

Management fees between enterprises (For example： management fees paid to headquarters)

Non-deductable

28

The interagency rental paid within an enterprise

Non-deductable

29

The loyalities paid within an enterprise

Non-deductable

30

Dividends and other equity investment income paid to investors

Non-deductable

31

Corporate income tax

Non-deductable