IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

SMEs

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2017 | Removal date: 31 Dec 2019
Still in force

Tax or social insurance relief

On the 5 May, 2017, the PRC Ministry of Finance announced that 'super deductions' on certain R&D expenses would be increased for firms classified as 'technology-based SMEs' (TSMEs) from 150% to 175% between 2017 and 2019, if they develop an intangible asset (i.e. some kind of proprietary intellectual property).

If no such asset is developed, a 75% deduction is still possible.

Larger firms are still eligible for the 150% deduction.

Details of eligible firms and deductible activities were laid out in 2015 (see related act). Further requirements for qualification as a TSME were released the day after this announcement in GuoKeFaZheng 2017/115. The requirements are broadly similar to the ones from the 2015 measure, with a focus on small, independent innovative firms.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

531 Buildings
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
676 Supporting services for air or space transport
679 Other supporting transport services
680 Postal & courier services
691 Electricity & gas distribution (on own account)
692 Water 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
811 Research & development in natural sciences & engineering
812 Research & development in social sciences & humanities
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
833 Engineering services
834 Scientific & other technical 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
862 Support services to mining
863 Support services to electricity, gas & water distribution
871 Maintenance services of fabricated metal products & machinery
872 Repair services of other goods
873 Installation services (other than construction)
881 Food, beverage & tobacco manufacturing services
882 Textile, wearing apparel & leather manufacturing services
883 Wood & paper manufacturing services
884 Petroleum, chemical & pharmaceutical manufacturing services
885 Rubber, plastic & non-metallic mineral manufacturing services
886 Basic metal manufacturing services
887 Fabricated metal product & machinery manufacturing services
888 Transport equipment manufacturing services
889 Other manufacturing services
891 Publishing, printing & reproduction services
892 Moulding, pressing & similar plastic manufacturing services
893 Forging, stamping & similar metal manufacturing services
894 Recylcling services, on a fee or contract basis
911 Administrative services of the government
912 Public administrative services
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
941 Sewerage, sewage treatment & septic tank cleaning services
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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