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China Raises Pre-Tax Additional Deductions for R&D Expenses of Manufacturing Firms China Raises Pre-Tax Additional Deductions for R&D Expenses of Manufacturing Firms April 15, 2021 Posted by China Briefing Written by Zoey Zhang Reading Time: 3 minutes On April 7, 2021, China’s Ministry of Finance (MOF) and State Taxation Administration (STA) jointly released the Announcement on Further Improving the Policy for Pre-Tax Additional Deductions for R&D Expenses (MOF SAT Announcement [2021] No.13). The announcement, with retrospective effect from January 1, 2021, increases the ratio of additional deduction on manufacturing firms’ R&D expenses from 75 percent to 100 percent. According to the announcement, for R&D expenses actually incurred by manufacturing firms:

Wang jianfanDezan shira associatesChina ministry of financeIndustrial classification for national economic activitiesTaxation administrationTax administration departmentState taxation administrationFurther improvingPre tax additional deductionsIndustrial classificationNational economic activitiesCai shuiDezan shiraசீனா அமைச்சகம் ஆஃப் நிதிதொழில்துறை வகைப்பாடு க்கு தேசிய பொருளாதார நடவடிக்கைகள்மேலும் மேம்படுத்துகிறது