May 31 2018

MOF and SAT Clarify Tax Deductible Policy for Staff Education Expenses

The Ministry of Finance and the State Administration of Taxation recently issued the Circular about Tax deductible Policy for Staff Education Expenses, effective from January 1, 2018.

According to the circular, if an enterprise's staff education expenses are not higher than 8% of total wages in a year, it can deduct the expenses when calculating its taxable income on corporate income tax, and additional expenses beyond the 8% can be carried over to future tax years.