The safety production expenses extracted by the enterprise shall be deducted before tax according to the actual use. The reason for this is the following：

1, the new and old enterprise income tax laws stipulate that all expenditures directly related to production must be collected according to the actual amount, and withholding or deferral cannot be adopted. It is against the provisions of the tax law to deduct the safety production expenses before tax.

2. From the perspective of the effectiveness of laws and regulations, the legal effectiveness of laws, regulations and rules is gradually decreasing, and the legal effectiveness of rules formulated by state ministries and commissions is not as great as that of enterprise income tax law. If the understanding of pre-tax deduction according to the withdrawal amount is correct, the provisions of the above documents conflict with the enterprise income tax law. In other words, if the provisions of the documents of the above-mentioned national ministries and commissions are inconsistent with the law, the provisions of the enterprise income tax law should be implemented.

3. According to State Taxation Administration of The People's Republic of China's attitude, although State Taxation Administration of The People's Republic of China did not explicitly stipulate that safety expenses should be paid before tax according to the actual use, on May 22, 2008, it issued the Notice of Xinjiang Local Taxation Bureau on Pre-tax Deduction of Safety Expenses in High-risk Industries and Safety Expenses in Coal Production (No.69 [2008] of New Local Taxation Bureau), stipulating that the safety production expenses extracted by enterprises in high-risk industries according to the standard should not be directly deducted, but should be deducted according to the actual expenses; Assets formed shall be depreciated or amortized in accordance with the provisions of the tax law. If enterprises have such problems left over from previous years, they will also deal with them in this way. Visible, State Taxation Administration of The People's Republic of China's point of view is also based on the actual use of tax expenditure.