Employee benefits such as summer high temperature subsidies and employee birthday expenses can be directly recorded without invoicing.

According to the Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages and Salaries and Employee Welfare Expenses (Guoshuihan [2009] No.3), the employee welfare expenses stipulated in Article 40 of the detailed rules for implementation include the following contents:

(1) Equipment, facilities and personnel expenses incurred by welfare departments of enterprises that fail to perform social functions alone, including equipment, facilities and maintenance expenses of staff canteens, staff bathrooms, barbershops, infirmary, nurseries, sanatoriums and other collective welfare departments, and wages, social insurance premiums, housing accumulation funds and labor expenses of welfare department staff.

(2) Subsidies and non-monetary benefits for employees in medical care, living, housing and transportation. , including medical expenses paid by enterprises to employees traveling in different places, medical expenses of employees of enterprises 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, subsidies for employees' difficulties, relief funds for employees' canteens, and transportation subsidies for employees.

(3) Other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension expenses, settling-in expenses, family leave travel expenses, etc.

The current laws and regulations do not further refine the contents of subsidies or expenditures related to staff canteens. Generally, the object of subsidy or the direction of subsidy inflow is the staff canteen, which can be considered as the subsidy or expenditure related to the staff canteen.

The accounting of employee welfare expenses should be based on the provisions of Article 4 of Document No.3 [2009] of Guoshuihan, and separate account books should be set up for accurate accounting. If there is no separate account book for accurate accounting, the tax authorities shall order the enterprise to make corrections within a time limit. If no correction is made within the time limit, the tax authorities may reasonably verify the employee welfare expenses incurred by the enterprise.

State Taxation Administration of The People's Republic of China, People's Republic of China (PRC)-Notice on Deduction of Wages, Salaries and Employee Welfare Expenses of Enterprises