China Rebates High-Tech Enterprise Employee Education through Pre-Tax Deduction

On June 9, the Ministry of Finance and the State Administration of Taxation jointly released the Notice on High-New Technology Company Employee Education Funds Pre-tax Deduction Policy, effective on January 1, 2015.

The Circular specifies: 

• As for the employee education funds incurred by high-tech enterprises, the amount not exceeding 8% of total wages is allowed to be deducted from the taxable income for corporate income tax, while the exceeding amount is allowed to be carried forward and deducted in future years;
• This policy applies to those high-new tech enterprises that are registered in China, subject to audit and taxation, and certified as high-new tech enterprises.