The Ministry of Finance, State Taxation Administration and the Ministry of Science and Technology Announced on Increasing Efforts for Pre-tax Deduction to Support Scientific and Technological Innovation

On September 22, 2022, the Ministry of Finance, State Taxation Administration and the Ministry of Science and Technology released the Announcement on Increasing Efforts for Pre-tax Deduction to Support Scientific and Technological Innovation (“Announcement”). The Announcement provides further tax incentives for high-tech enterprises. The policy allows enterprises qualified as high-tech enterprises in the fourth quarter in 2022 to deduct the full amount of equipment and appliances purchased in this quarter on a one-off basis plus a weighted deduction before tax, and any shortfall may be carried forward to future years. In addition, for enterprises used to enjoy a weighted R&D expenses pre-tax deduction ratio of 75%, the ratio is raised to 100% for the last quarter in 2022.