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Jan 31, 2017

Revised tax enforcement decrees focusing on fostering new growth industries

The State Council revised 19 tax enforcement decrees. Among others, the following are introduced to foster new growth industries: (1) The Government increased the research and development (R&D) tax credit rate on new growth industries to up to 30 per cent, for both large and medium-sized companies. (2) It restructured tax incentives for FDI companies engaged in high-tech businesses and extended the benefits. (A full tax exemption will be provided in the case that the amount of deductible earnings is 80 per cent or more of the total business profits.)

Type: Promotion and facilitation (Investment incentives)

Industry: Not industry specific