According to the provisions of Article 3 of the State Administration of Taxation's Circular on the Deduction of Wages and Salaries and Employee Welfare Expenses of Enterprises (Guo Shui Han [2009] No. 3), the employee welfare expenses of enterprises as stipulated in Article 40 of the Implementing Regulations include the following:
1. Enterprises that have not yet implemented the separation of the function of running a social enterprise, the welfare department of its internal equipment, facilities and personnel incurred Costs, including equipment, facilities and repair and maintenance costs of collective welfare departments such as staff canteens, staff bathrooms, barber shops, medical clinics, nurseries and nursing homes, and the wages and salaries, social insurance premiums, housing provident funds and labor costs of staff in the welfare departments, etc.
2.
2. Subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by enterprises to employees for overseas medical treatment on official business, medical expenses for employees of enterprises that do not have medical coordination, medical subsidies for employees' dependent immediate family members, subsidies for heating costs, summer heat-heat-abatement expenses for employees, hardship subsidies for employees, relief expenses, subsidies for employees' canteens, and transportation subsidies for employees. etc.
3. Other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, compassionate care, settling-in expenses, and travel expenses for family visits.
Accordingly, the personal medical expenses reimbursed by the employees can be included in the employee welfare expenses, and at the same time, according to the provisions of Article 40 of the Regulations for the Implementation of the Enterprise Income Tax Law, the employee welfare expenses incurred by the enterprise, not exceeding 14% of the total wages and salaries, are allowed to be deducted.