See the following two provisions:
1. The Notice of the Ministry of Finance on Printing and Distributing the Accounting Measures for Investment Companies (Cai Hui Zi [2004] 14) stipulates that an investment company refers to a non-financial enterprise that has not obtained a financial business license. The business income of an investment company mainly includes investment income, interest income, equity transfer income, entrusted management income and other business income. As far as investment forms are concerned, it includes equity investment and debt investment. Business expenses mainly include interest expenses, other business expenses, operating expenses, management expenses and financial expenses.
2. According to the income statement in the third line of Schedule I of Supplementary Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Guo [2008]1081). Because the investment company does not have the main business income stipulated in the industry financial accounting system, the investment income of the investment enterprise mainly engaged in foreign investment business is its main business income. Therefore, for an investment company whose main income is investment income, its investment income can be used as the base for calculating the deduction limit of business entertainment expenses.