Circular of the Ministry of Finance and State Administration of Taxation on the Adjustments in the Amount of Salaries Deductible before Corporate Income Tax

Circular of the Ministry of Finance and State Administration of Taxation on the Adjustments in the Amount of Salaries Deductible before Corporate Income Tax

Cai Shui [2006] No.126

September 1, 2006

The departments (bureaus) of public finance, the state taxation administrations and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning, the Bureau of Public Finance of Sinkiang Production and Construction Corps,

Upon the approval of the State Council, we hereby give our notice as follows on the relevant issues concerning the adjustment of the policies on deduction of wage expenditures prior to the levy of enterprise income taxes:

I. As of July 1, 2006, the capital limitation for pre-tax deduction of wage expenditures of enterprises shall be adjusted into 1,600 Yuan per month for each person.
　　......