Core Viewpoint - The article discusses the regulations regarding the deductibility of salary and wage expenses for enterprises, emphasizing the importance of adhering to the standards set by tax authorities to ensure that only reasonable and compliant expenses are deductible [4][6][7]. Summary by Sections Definition of Salary and Wage Expenses - Salary and wage expenses include all forms of cash and non-cash compensation paid to employees, such as basic salary, bonuses, allowances, and overtime pay [4]. Reasonable Salary and Wage Expenses - Reasonable salary and wage expenses are defined as those that are actually paid to employees according to the established salary system of the enterprise, which must be confirmed by tax authorities [6][11]. Deductibility Criteria - Enterprises must ensure that their salary and wage expenses meet specific criteria to be deductible, including having a standardized salary system, compliance with industry and regional standards, and orderly adjustments to salaries [11]. Government Limitations on State-Owned Enterprises - State-owned enterprises cannot deduct salary expenses that exceed the limits set by government authorities; any excess is not included in the total salary expenses for tax calculations [7][8]. Treatment of Prepaid Salaries - Prepaid salaries that are not actually paid by the end of the annual tax settlement cannot be deducted in that tax year [10][11]. External Labor Dispatch Expenses - Expenses incurred from using external labor dispatch services must be categorized correctly for tax purposes, with direct payments to labor dispatch companies classified as service fees, while payments to individual employees are classified as salary and welfare expenses [12][13].