Trade union funds and employee education funds accrued from the wages payable to employees, regardless of the income target, are all included in the management expenses? Or distinguish between income targets? thank you Regulations on the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC)

Forty-first trade union funds allocated by enterprises according to the proportion of total wages not exceeding 2% shall be deducted.

Forty-second, unless otherwise stipulated by the competent department of finance and taxation of the State Council, the part of the employee education expenses incurred by the enterprise that does not exceed 2.5% of the total wages and salaries is allowed to be deducted; The excess shall be allowed to be carried forward and deducted in future tax years.

The tax law and accounting regulations do not require enterprises to distinguish between the trade union funds allocated by enterprises and the employee education expenditures incurred by enterprises. Generally, it can be included in the management expenses.