This depends on which reserves are withdrawn. Some can be deducted before tax, and some cannot.
According to Article 10 of the "Enterprise Income Tax Law of the People's Republic of China": When calculating taxable income, the following expenditures shall not be deducted: (7) Unapproved reserve expenditures.
Article 55 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" explains this in detail: The unspecified amount mentioned in Item (7) of Article 10 of the Enterprise Income Tax Law Approved reserve expenditures refer to various asset impairment reserves, risk reserves and other reserve expenditures that do not comply with the provisions of the State Council's financial and tax authorities.
Extended information:
"Notice of the State Administration of Taxation on Issuing the "Administrative Measures for Pre-tax Deduction of Enterprise Research and Development Expenses (Trial)"" (Guo Shui Fa [2008] No. 116) , the enterprise is engaged in the research and development activities of the projects specified in the "High-tech Fields Supported by the State" and the "Guidelines for Key High-tech Industrialization Fields for Current Priority Development (2007)" promulgated by the National Development and Reform Commission and other departments, which in a tax year The following expenses actually incurred are allowed to be deducted in accordance with regulations when calculating taxable income.
(1) New product design fees, new process specification formulation fees, and technical book and material fees and material translation fees directly related to R&D activities.
(2) Material, fuel and power costs directly consumed in R&D activities.
(3) Wages, salaries, bonuses, allowances, and subsidies for employees who are directly engaged in R&D activities.
(4) Depreciation or rental fees for instruments and equipment specifically used for research and development activities.
(5) Amortization expenses of intangible assets such as software, patents, and non-patented technologies specifically used for research and development activities.
(6) Mold, process equipment development and manufacturing costs specifically used for intermediate testing and product trial production.
(7) On-site test fees for exploration and development technology.
(8) Fees for demonstration, review, and acceptance of R&D results.
The tax authorities should focus on reviewing whether the collection of research and development expenses complies with regulations. The relevant information submitted by the enterprise must be strictly reviewed. If the relevant information is not in compliance with the regulations or the relevant information is not provided, the research and development expenses incurred shall not be subject to super deduction.
Baidu Encyclopedia-Enterprise Income Tax Law of the People's Republic of China