As for the pre-tax deduction standard of advertising fees and business promotion fees, generally speaking, the part that does not exceed the sales (business) income 15% of the current year is allowed to be deducted; The excess shall be allowed to be carried forward and deducted in future tax years. Special enterprises can be deducted in future years.

The "Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC)" (hereinafter referred to as the "Regulations") stipulates: "Unless otherwise stipulated by the competent departments of finance and taxation of the State Council, the eligible advertising expenses and business promotion expenses incurred by enterprises shall be deducted not to exceed15% of the sales (business) income of the current year; In excess, it is allowed to carry forward the deduction in future tax years. "

At the same time, the Notice of the Ministry of Finance on the Pre-tax Deduction Policy for Advertising Fees and Business Promotion Fees in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Caishui [2012] No.48) stipulates: "Advertising fees and business promotion fees incurred by cosmetics manufacturing and sales, pharmaceutical manufacturing and beverage manufacturing (excluding alcohol manufacturing) are allowed to be deducted; In excess, it is allowed to carry forward the deduction in future tax years. "