Viewpoints from Kaizen

Summary of Deduction Items and Standard for CIT in China(Continued 2)   No. Deduction Items Standard of Deduction/Proportion of Limit Remark 32 Unverified provision Non-deductable   33 Depreciation of fixed assets Deductable within the prescribed scope Not exceed the minimum period of depreciation 34 Depreciation of productive biological assets Deductable within the prescribed scope 10 years for woods, 3 years for livestock 35 Amortization of intangible assets Amortization period not less than 10 years General intangible assets Amortizion based on the period stipulated by the law or contract Intangible assets obtained from investment or purchase Non-deductable Goodwill created by the enterprise itself Non-deductable Intangible assets irrelated to the business operation 36   Long term deferred expense Deductable within the limit amount 1. The amortization for reconstruction expenses of buildings that have been fully depreciated shall be apportioned according to the estimated useful life 2.  The amortization for reconstruction expenses of […]

How to Lawfully Adjust the Post of an Employee in China?   According to Article 35 of the Labour Contract Law of the PRC, the labour contract cannot be amended unless the employer the employee have reached a consensus on such amendment. The post of the employee is an essential provision of the labour contract. The employer should in principal negotiate with the employee and reach a consensus before adjusting the post of the employee. The employer may encounter some legal risks if it fails to reach a consensus with the employee and adjust the post of the employee unilaterally.   In practice, the employer usually stipulates in the labour contract that the employer is entitled to adjust the job description or position of the employee at any time if needs arise in its production and operation. Is it possible for the employer to adjust the post of the employee […]

 China will Further Relax Market Access in Hainan The National Development and Reform Commission and the Ministry of Commerce of the PRC jointly released 22 special measures to further relax market access in Hainan Free Trade Port on 7 April 2021. The special measures mainly cover the following five sectors:    Medical Sector (1)  Establish an electronic prescription center in Hainan, prescription drugs can be sold over the internet via the center; (2)  Encourage the first set of high-end medical equipment to be produced in Hainan; (3)  Increase support for market access of drugs, qualified innovative drugs can be used directly once approved; (4)  Fully relax access restrictions on Contract Research Organization (CRO); (5)  Support the development of high-end medical beauty industry in Hainan; (6)  Optimize the market access and development environment of transplantation science in all fields; (7)  Establish a mixed ownership reform fund for the development of medical […]

Summary of Deduction Items and Standard for CIT in China(To be Continued)   No. Deduction Items Standard of Deduction/Proportion of Limit Remark 1 Employee’s salary Aactual salary amount Employment, reasonable salary amount Additional 100% deduction Salary of disabled employees 2 Welfare 14% Gross salary of the employees 3 Employee’s education expenses 8% Gross salary of employees, the excess part can be carried forward in the following years Full amount Operator training fees for nuclear power generation enterprise Full amount Employee training fees for software enterprise 4 Labour union funds 2% Gross salary of the employees 5 Entertainment expenses MIN（60%，5‰） 60% of the acutal entertainment expense versus 5‰ of the sales revenue, the lower one is allowed to be deducted；The dividend, equity transfer income of equity investment enterprise can be calculated  as sales revenue   Advertisement expenses & propaganda expenses 15% Sales revenue of current year, the excess part can be […]