Legal basis: Enterprise Income Tax Law of People's Republic of China (PRC).
Article 9 If the public welfare donation expenditure incurred by an enterprise is within 12% of the total annual profit, it may be deducted when calculating the taxable income; The part exceeding the total annual profit 12% is allowed to be deducted when calculating the taxable income within three years after carry-over.
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.