The expenses related to guarantee paid by the enterprise can be deducted before tax if they are related to the production and operation of the enterprise. According to the provisions of Article 33 of the Regulations for the Implementation of the Enterprise Income Tax Law, other expenses mentioned in Article 8 of the Enterprise Income Tax Law refer to the reasonable expenses related to production and business activities except costs, expenses, taxes and losses incurred by enterprises in production and business activities.
The reasonable expenditure mentioned in Article 8 of the Enterprise Income Tax Law refers to the necessary and normal expenditure that conforms to the routine of production and business activities and should be included in the current profit and loss or the cost of related assets.