The total wages mentioned in Articles 40, 41 and 42 of the Implementation Regulations refer to the total wages actually paid by enterprises in accordance with the provisions of Article 1 of this notice, excluding employee welfare funds, employee education funds, trade union funds, pension insurance, medical insurance, unemployment insurance, work injury insurance, maternity insurance and other social insurance premiums and housing accumulation funds.
The wages and salaries of state-owned enterprises shall not exceed the limits given by the relevant government departments;
The excess shall not be included in the total wages and salaries of the enterprise, nor shall it be deducted when calculating the taxable income of the enterprise.
According to the provisions of Article 1 of the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Pre-tax Deduction of Wages and Salaries of Enterprises and Employee Welfare Expenses (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2015 No.34),
The welfare subsidies that are incorporated into the wage and salary system of enterprise employees and distributed together with wages and salaries conform to the provisions of Article 1 of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Deduction of Wages and Salaries of Enterprises and Welfare Expenses of Employees (Guo Shui Fa [2009] No.3), and can be used as the wage and salary expenses incurred by enterprises and deducted before tax according to regulations.
Welfare subsidies that do not meet the above conditions at the same time shall be regarded as employee welfare expenses stipulated in Article 3 of Document No.3 of Guoshuihan [2009], and pre-tax deduction shall be calculated according to regulations.
Extended information The statutory deduction of enterprise income tax is a project to determine the taxable income of enterprise income tax.
According to the enterprise income tax regulations, the taxable income of an enterprise is determined by the total income of the enterprise MINUS the cost, expenses, losses and deductible items.
Reference: Suzhou Local Taxation Bureau, Jiangsu Province-Pre-tax deduction standard for enterprise income tax on wages and salaries