The mainland increases support for new equipment purchased by high-tech enterprises to be fully tax deductible at one time.
The Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology issued a notice on increasing support for pre-tax deductions for scientific and technological innovation. New equipment and appliances purchased by high-tech enterprises during the period from October 1 to December 31 are allowed to be deducted in the calculation of taxable income in the current year, and 100% additional deductions are allowed before tax.
This policy can be applied to all enterprises with high-tech enterprise qualifications in the fourth quarter of this year. If the enterprise chooses to apply the policy which is insufficient to deduct in the current year, it may carry forward to the following year in accordance with the current relevant provisions.
In addition, for enterprises that currently apply 75% of the pre-tax deduction for R & D expenses, the proportion of pre-tax deduction will be increased to 100% between October 1 and December 31 this year.
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