1. The total wages actually paid by software development enterprises are allowed to be deducted when calculating taxable income.
2. Software development enterprises can deduct advertising expenditure at the rate of 8% of sales (business) income in each tax year, and the advertising expenditure exceeding the ratio can be carried forward to future tax years indefinitely.
3. High-tech enterprises engaged in software development may, within five tax years from the date of registration and establishment, deduct the advertising fees after being audited by the competent tax authorities.
Legal basis: Enterprise Income Tax Law of People's Republic of China (PRC).
Article 11 The depreciation of fixed assets calculated by an enterprise according to regulations shall be deducted when calculating the taxable income. Depreciation deduction is not allowed for the following fixed assets: (1) Fixed assets other than houses and buildings that have not been put into use; (2) Fixed assets leased in the form of operating lease; (3) Fixed assets leased by means of financial leasing; (4) Fixed assets that have been fully depreciated and still continue to be used; (5) Fixed assets unrelated to business activities; (6) Land separately priced and accounted for as fixed assets; (seven) other fixed assets that cannot be deducted from depreciation.
Article 12 The amortization expenses of intangible assets calculated by an enterprise in accordance with regulations shall be deducted when calculating taxable income. Amortization expenses shall not be deducted for the following intangible assets: (1) Intangible assets whose self-development expenses have been deducted when calculating taxable income; (2) Self-created goodwill; (3) Intangible assets unrelated to business activities; (4) Other intangible assets that cannot be deducted from amortization expenses.
Article 13 When calculating the taxable income, the following expenses incurred by an enterprise shall be regarded as long-term deferred expenses, which shall be amortized in accordance with the provisions and allowed to be deducted: (1) the expenses for the renovation of fully depreciated fixed assets; (2) expenditure on renovation of rented fixed assets; (3) Expenditure on major repairs of fixed assets; (4) Other expenses that should be regarded as long-term deferred expenses.
Regulations for the implementation of the enterprise income tax law
Article 95 The term "research and development expenses plus deduction" mentioned in Item (1) of Article 30 of the Enterprise Income Tax Law refers to the research and development expenses incurred by an enterprise for developing new technologies, new products and new processes. If intangible assets are not included in the current profits and losses, 50% of the research and development expenses will be added and deducted on the basis of actual deduction according to regulations. Intangible assets shall be amortized at 150% of the cost of intangible assets.
Article 96 The term "additional deduction of wages paid by enterprises to resettle the disabled" mentioned in Item (2) of Article 30 of the Enterprise Income Tax Law refers to the deduction of wages paid to disabled employees on the basis of actual deduction. The relevant provisions of the Law of the People's Republic of China on the Protection of Disabled Persons shall apply to the scope of disabled persons. The measures for the deduction of wages paid by enterprises to other employees encouraged by the state for resettlement mentioned in Item (2) of Article 30 of the Enterprise Income Tax Law shall be formulated separately by the State Council.
People's Republic of China (PRC) tax collection management law
Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.
Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.
Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council.
No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.
Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.
Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.