China Enhanced Super Deduction for R&D Expenses

Tax Newsflash:November 13, 2015/China

On 3 November 2015, China’s Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology jointly issued new guidance (Caishui [2015] No.119 (Circular 119)) that expands the scope of the super deduction for research and development (R&D) expenses incurred by domestic enterprises and streamlines the related administrative procedures relating to the super deduction. (Tax Newsflash:November 13, 2015/China)

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Circular 119, which is designed to encourage more businesses to invest in R&D, will enter into effect on 1 January 2016, and replace the current rules (i.e. Guoshuifa [2008] No.116 and Caishui [2013] No.70).

This newsletter explains the following topics;

(1) Background
(2) Major changes made by Circular 119
(3) Deloitte's comments

>> Click for Japanese [研究開発費用の追加控除政策の適用範囲の拡大]

(103KB, PDF)

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