On 9 December 2016, the State Administration of Taxation (SAT) issued an announcement clarifying two issues concerning enterprise income tax. The announcement applies to 2016 and subsequent years.
The clarification contains payment of accident insurance on behalf of an employee who is on a business trip is deductible for enterprise income tax purposes and assets transfer of enterprise for the purposes of promotion and sales, building client relationships, the welfare of employees and the distribution of dividends and gifts must be determined on the basis of fair market value.
