Legal basis: Regulations on the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC).
Article 33 The term "other expenses" as mentioned in Article 8 of the Enterprise Income Tax Law refers to the reasonable expenses related to the production and operation activities of the enterprise except costs, expenses, taxes and losses.
Article 34 Reasonable wages and salaries incurred by an enterprise shall be deducted. The wages and salaries mentioned in the preceding paragraph refer to all cash or non-cash labor remuneration paid by an enterprise to its employees in each tax year, including basic wages, bonuses, allowances, subsidies, year-end salary increase, overtime pay and other expenses related to the employment or employment of employees.