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China Insight - Tax

China Encourages Accelerated Depreciation / Deduction of Fixed Asset Costs before Corporate Income Tax


On 24 September 2014, the Standing Committee of the PRC State Council has made a decision to adjust the tax deduction policy in respect of fixed asset costs and depreciation in order to encourage investment in fixed assets. Afterwards, respectively on 20 October and 14 November 2014, two tax circulars, i.e. Caishui [2014] No. 75 and SAT Announcement [2014] No. 64 were issued by the PRC State Administration of Taxation (“SAT”) and the PRC Ministry of Finance to set out detailed rules. On 22 November 2014, the SAT also held a press conference

The new rules provide opportunities to tax payers to accelerate depreciation or deduction of fixed asset costs before corporate income tax (“CIT”).

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China Insight - Tax
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