Since the implementation of the merger of the two taxes in 2008, the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [2000] No.84) has become invalid, but the provision of pre-tax deduction in Article 8 of the new enterprise income tax law is extremely simple: "The actual reasonable expenses related to income, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income."
Extended data:
measures for the pre tax deduction of enterprise income tax
Article 4 Unless otherwise stipulated by tax laws and regulations, the confirmation of pre-tax deduction shall generally follow the following principles:
(1) accrual principle. That is, the taxpayer should confirm the deduction when the expenses occur rather than when they are actually paid.
(2) the principle of proportionality. That is, the expenses incurred by taxpayers should be declared and deducted in the current period when the expenses should be matched or distributed. The deductible expenses that taxpayers should declare in a tax year shall not be declared in advance or later.
(3) the principle of relevance. That is, the deductible expenses of taxpayers must be related to the nature and source of taxable income.
(4) the principle of certainty. That is, whenever taxpayers can deduct expenses, they must determine the amount.
(5) the principle of rationality. In other words, the calculation and distribution method of taxpayers' deductible expenses should conform to general business practices and accounting practices.
Article 5 The expenses incurred by taxpayers must be strictly distinguished from operating expenses and capital expenditures. Capital expenditure shall not be deducted directly in the current period, but must be depreciated, amortized or included in the relevant investment cost in accordance with the provisions of tax laws and regulations.
Article 6 Except as stipulated in Article 7 of the Regulations, the following expenses shall not be deducted when calculating taxable income:
(1) Bribery and other illegal expenses;
(2) Fines, fines and overdue fines paid in violation of laws and administrative regulations;
(3) Inventory depreciation reserve, short-term investment depreciation reserve, long-term investment impairment reserve, risk reserve fund (including investment risk reserve fund), and reserves in any form other than those that can be withdrawn according to national tax laws and regulations;
(four) tax laws and regulations have specific deduction scope and standards (proportion or amount), and the actual expenditure exceeds or exceeds the legal scope and standards.
Reference source: Baidu Encyclopedia-Pre-tax deduction method of enterprise income tax