26 June 2018
Accelerated Depreciation of New Equipment Purchases Allowed on Corporate Income Tax
Mainland businesses have been given the go-ahead to deduct the full cost of new equipment (those with unit cost up to RMB5 million) – from the taxable corporate income in the purchase year. The move, jointly announced by the Ministry of Finance and the State Administration of Taxation, applies to equipment purchases finalised in the period 1 January 2018-31 December 2020 and is intended to promote and facilitate a higher level of overall investment.
In the case of equipment purchases with a unit cost above RMB5 million, however, the requirements and obligations detailed in the Enterprise Income Tax Law (2007) remain applicable.
For further details (in Chinese), please visit the following link: