Article 5 of the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Exempting Foreign Individuals from Individual Income Tax (Guo Shui Fa [1997] No.54) stipulates that foreign individuals shall be exempted from individual income tax for language training fees and children's education subsidies, and taxpayers shall provide proof of expenses and time limit for receiving the above education in China, which shall be audited by the competent tax authorities, as well as language training fees and children's education subsidies obtained by them for language training in China and education in China. According to the Enterprise Income Tax Law and its implementing regulations and the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Deduction of Wages and Salaries and Employee Welfare Expenses (No.3 [2009] of Guoshuihan), the education expenses paid by the company for the children of foreigners have nothing to do with the production and operation of the enterprise, nor do they belong to employee welfare expenses, and cannot be deducted before tax. For similar problems, the internal documents of Beijing State Taxation Bureau stipulate that it is not allowed to deduct before enterprise income tax. I also consulted the tax department and replied that pre-tax deduction is not allowed. As for which accounting subjects are included, it depends on how the contract is signed with foreigners. If this item is included in the salary in the contract, it will be included in the salary. If not, and there are no documents, I think it should be included in the salary. Hold legal bills to the local tax authorities for confirmation,

Duty free. The above is for reference only.

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