A company’s accounting profit commonly is not equal to its taxable profit.

The main course that makes this difference between accounting profit and taxable profit is that some expenses have a limited amount to be as tax deductible expense.  Due to this reason, the accountant needs to do some adjustments when the company files annual settlement of enterprise income tax.

Below are the usual expenses which have a limited amount to be as deductible expense for your reference.

• Meals for clients

the deductible amountis minimum one of the below,

1) 60% of the totalmeals invoice for clients

2) 0.5% of the annual revenue.

• Employee's welfare

14% of the annual all employees' salary amount.

• Employee education fee related to their professional skill

8.0% of the annual all employees' salary amount.

• Labor union fee

2% of the annual all employees' salary amount.

• Donation through the Non- profit organizations which in the name list issued by the tax office.

12% of annual profit in accounting book.

• Advertisement &promotion fee

15% of the annual revenue. (some pecial industries can enjoy a higher rate)

• Commission fee

5% of the related transaction.

#Tax Deductible Expense

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