CIT Deduction for Small and Medium Entrerprises Purchasing Equipment
On 4 March 2022, the Ministry of Finance (MOF) released Announcement no. 12 on “Pre-tax Deduction of Taxable Corporate Income on Micro, Small and Medium-sized Enterprises for the Purchase of Equipment”. According to the announcement, small and medium-sized enterprises purchasing new equipment with a unit value of more than 5 million RMB, during the period from 1 January 2022 to 31 December 2022, a portion of the cost of the equipment can be deducted when declaring Corporate Income Tax. For equipment with a minimum depreciation period of 3 years, the amount that can be deducted is 100% of the unit value; for equipment with a minimum depreciation period of 4, 5, and 10 years, the amount that can be deducted is 50% of the unit value.