The State Administration of Taxation released a Notice on Further Implementation of the Policy of R&D Expenses Super Deduction (Shuizonghan  No. 685, 'This notice') on 21st of December 2016. This notice requires each local tax authority to ensure proper implementation of this preferential policy during the 2016 annual tax filing. No. 685 clarifies that if an enterprise has or is found to have tax related problems in the previous years, the case shall be dealt with separately in accordance with applicable requirements without preventing the enterprise from enjoying the R&D Super Deduction in 2016 in whatever manner. In addition, if an enterprise fails to apply for enjoying the R&D Super Deduction preferential policy in a timely manner in 2016, it may enjoy the policy retrospectively in the next 3 years.