China Taxation Services
Hotline: 86-755-82143422, Email:anitayao@citilinkia.com
Salary expenditure of enterprises
1) With respect to the enterprises that link total payroll with economic benefits with approval of competent authorities， the salaries paid may be deducted from the taxable income if the growth rate of total payroll is lower than that of economic benefits and the growth rate of average payroll of employees is lower than that of the labor productivity.
2) The salaries set aside from the retained profits by the catering service enterprises in accordance with state provisions may be deducted from the taxable income.
3) The other enterprises not subject to the measures above shall comply with the measures for salaries subject to tax. The salaries paid within the standard for the taxable salaries may be deducted from tax according to the actual payment. The part in excess of the standard shall not be deducted from the taxable income. The maximum limit for monthly deduction of taxable salaries shall be RMB500 per head， with the specific deduction standards to be determined by the people's government of each province， autonomous region and municipality according to local industrial situations and filed with the Ministry of Finance. Several economically developed regions may be not more than 20% higher than the maximum limit when necessary， and shall report to the Ministry of Finance for approval. The Ministry of Finance will make appropriate adjustment to the taxable salary limit according to the consumer price index published by the National Bureau of Statistics， and each region may adjust its taxable salary standards accordingly.
Depreciation of fixed assets
The depreciation life of fixed assets of enterprises shall comply with the provisions of financial systems by industry promulgated by the Ministry of Finance.
With respect to a small number of urban collective enterprises and township enterprises which need to reduce the depreciation life for special reasons， these enterprises may file an application to the tier-1 local tax bureaus of provinces， autonomous regions and municipalities through consultation with the financial departments （bureaus）。 But the depreciation life shall not be lower than the life specified below：
1) Housing and building： 20 years；
2) Train， steamship， machinery and other production equipment： 10 years；
3) Electronic equipment， other transportation tools other than train and steamship and the devices， tools and furniture relating to production and operation： 5 years.
Contact us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.