ANNOUNCED AS TEMPORARYNo
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:
The scheme is only open to Chinese firms.
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