ANNOUNCEMENT 10 Oct 2009

In October 2009, the government of China announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Jul 2009 | Removal date: open ended
Still in force

Tax or social insurance relief

 On 10 October 2009, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the "Tax Policies for the Purchase of Equipment by Research and Development Institutions" (Caishui'2009'No.115). 
 
According to the Notice, foreign funded R&D institutions which satisfy the requirements in the Notice shall enjoy the tax incentives prescirbed in the "Interim Measures of Import Tax Exemptions on the Scientific Research Equipment"(Order of MOF, GAC and SAT No.44).

To obtain the tax incentives, the Notice imposes minimum requirement of R&D investment and the number of locally hired researchers.
On 10 October 2010, the Ministry of Finance, General Administration ofCustoms and the State Administration of Taxation issued the "Notice onContinuation of the Tax Policies of Purchase of Scientific Research andDevelopment Equipment" (Caishui'2011'No.88).
 
According to the Notice, foreign funded R&D institutions continue toenjoy the tax incentives prescribed in Notice on the Tax Policies ofPurchase of Scientific Research and Development Equipment(Caishui'2009'No.115) (see related measure). It also provides moreaccurate definitions of the relevant terms.