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Inception date: 01 Jan 2016 | Removal date: open ended
Still in force

Tax or social insurance relief

On the 3 November 2015, three Chinese ministries announced in Caishui 119/2015 that official implementation of a plan to widen the range of R&D firms eligible for 150% 'super-deductions' on eligible expenses.

Eligible industries are defined as firms which carry out continuous activities towards furthering the fields of science and technology. Previously, only industries mentioned in two 2007 lists of prioritised industries were eligible for the reductions.

From 2016 onwards, any firm that can convincingly argue that it satisfies the above conditions can potentially benefit, except those specified on a negative list of 7 industries. The change from a positive to a negative list increased the sectoral coverage of this scheme by the sectors stated in the taxonomy of this intervention. Please see related state acts for information on the sectors which have already been included on the positive list and remain eligible under the new regime.

Regarding the types of expenses that can be claimed back, this policy adds a few new categories:

  • Service fees for external R&D personnel;
  • Inspection fees for experimental products;
  • Expert consultation fees;
  • Insurance premiums on R&D of novel high technology;
  • Expenditure on research, analysis, review etc. of R&D results;
  • Application, registration and agency fees for intellectual property;
  • Travel and meeting expenses, etc.

The scheme is only open to Chinese firms.




532 Civil engineering works
541 General construction services of buildings
542 General construction services of civil engineering works
543 Site preparation services
544 Assembly & erection of prefabricated constructions
545 Special trade construction services
546 Installation services
547 Building completion & finishing services
641 Local transport & sightseeing services for passengers
642 Long-distance transport services of passengers
651 Land transport services of freight
652 Water transport services of freight
653 Air & space transport services of freight
660 Rental services of transport vehicles with operators
671 Cargo handling services
672 Storage & warehousing services
673 Supporting services for railway transport
674 Supporting services for road transport
675 Supporting services for water transport
679 Other supporting transport services
680 Postal & courier services
691 Electricity & gas distribution (on own account)
711 Financial, insurance & pension services, excl. investment banking
712 Investment banking services
713 Insurance & pension services, excl. social security
714 Reinsurance services
715 Services auxiliary to financial services
716 Services auxiliary to insurance & pensions
717 Services of holding financial assets
813 Interdisciplinary research & development
814 Research & development originals
821 Legal services
822 Accounting, auditing & bookkeeping services
823 Tax consultancy & preparation services
824 Insolvency & receivership services
831 Management consulting & management services; ITC services
832 Architectural services, planning & landscape architectural services
835 Veterinary services
836 Advertising services & provision of advertising space or time
837 Market research & public opinion polling services
838 Photography services & photographic processing services
839 Other professional, technical & business services
841 Telephony & other telecommunications services
842 Internet telecommunications services
843 On-line content
844 News agency services
845 Library & archive services
846 Broadcasting, programming & programme distribution services
851 Employment services
852 Investigation & security services
853 Cleaning services
854 Packaging services
855 Travel arrangement, tour operator & related services
859 Other support services
861 Support services to agriculture, hunting, forestry & fishing
871 Maintenance services of fabricated metal products & machinery
872 Repair services of other goods
873 Installation services (other than construction)
913 Administrative social security services
921 Pre-primary education services
922 Primary education services
923 Secondary education services
924 Post-secondary non-tertiary education services
925 Tertiary education services
929 Other education & training services
931 Human health services
932 Residential care services for the elderly & disabled
933 Other social services with accommodation
934 Social services without accommodation
935 Other social services without accommodation
942 Waste collection services
943 Waste treatment & disposal services
944 Remediation services
945 Sanitation & similar services
949 Other environmental protection services n.e.c.
951 Services furnished by employers & professional organizations
952 Services furnished by trade unions
959 Services furnished by other membership organizations
971 Washing, cleaning & dyeing services
972 Beauty & physical well-being services
973 Funeral, cremation & undertaking services
979 Other miscellaneous services
980 Domestic services
990 Services provided by extraterritorial organizations & bodies

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