What are non-deductible expenses in China for annual compliance purposes?

The following items are not deductible under Chinese laws for annual compliance:

• Management fees paid between enterprises;
• Rental and royalty fees paid between business units;
• Interest paid between business units of a non-bank enterprise;
• Provisions for inventories, bad debt, fixed assets and others;
• Sponsorship expenses, if they are not of any advertising nature and are irrelevant to business operation;
• Late fee for tax payment; and
• Fines and penalties by administrative authorities (excluding penalties by business contracts).