China: Guidance clarifying the R&D “super deduction” | KPMG | GLOBAL

China: Guidance clarifying the R&D “super deduction”

China: Guidance clarifying the R&D “super deduction”

China’s tax administration issued guidance concerning implementation of the 150% “super deduction” available under the research and development (R&D) regime.


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The State Administration of Taxation (SAT) released Announcement [2015] No. 97 to provide detailed implementation standards with respect to prior guidance, Cai Shui [2015] No. 119, establishing the R&D super deduction.  

Announcement No. 97 provides detailed guidance clarifying:

  • The scope of R&D personnel
  • R&D expense allocation
  • Contract R&D
  • The criteria for determining “negative industries,” accounting and allocation requirements 
  • The requirement for recording filing, post-filing administration, and review and execution time
  • The effective date of the new provisions


Read a January 2016 report prepared by the KPMG member firm in China: 150% Super Deduction Regulation Update

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