legal ground
Article 8 of the Enterprise Income Tax Law of People's Republic of China (PRC)
Reasonable expenses related to income actually incurred by an enterprise, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.
Article 10
When calculating taxable income, the following expenses shall not be deducted:
(1) Dividends, bonuses and other equity investment income paid to investors;
(2) enterprise income tax;
(3) tax late fees;
(four) fines, fines and confiscation of property losses;
(5) Donation expenditures other than those specified in Article 9 of this Law;
(6) sponsorship expenditure;
(7) Unapproved reserve expenditure;
(eight) other expenses unrelated to income.