If your enterprise not only pays medical insurance premiums, but also participates in medical co-ordination and reimburses employees for medical expenses, it cannot be deducted before enterprise income tax.
Article 3 of the Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages, Salaries and Employee Welfare Expenses (No.3 [2009] of the State Administration of Taxation) stipulates that article 3 shall be implemented.
The welfare expenses of enterprise employees stipulated in Article 40 of the Model include the following contents:
1. Equipment, facilities and personnel expenses incurred by welfare departments of enterprises that have not implemented social functions alone, including staff canteens, staff bathrooms,
Equipment, facilities and maintenance costs of collective welfare departments such as barbershops, clinics, nurseries and sanatoriums, wages and salaries of welfare department staff, and society
Insurance premium, housing accumulation fund, labor cost, etc.
2. Subsidies and non-monetary benefits for employees in medical care, living, housing and transportation. , including the medical treatment in the business field issued by the enterprise to employees.
Expenses, medical expenses of enterprise employees who have not implemented medical co-ordination, medical subsidies for employees to support their immediate family members, heating subsidies, heatstroke prevention and cooling expenses for employees, and subsidies for employees' difficulties.
, relief funds, staff canteen funds subsidies, staff transportation subsidies, etc.
3. Other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension expenses, settling-in expenses, family leave travel expenses, etc.