On 31 March 2021, the State Administration of Taxation of China has published Announcement No. 13 of 2021, regarding an increased R&D super deduction for manufacturing entities.
The announcement include 200% deduction for R&D expenses actually incurred by manufacturing entity in conducting R&D activities that have not resulted in intangible assets with effect from 1 January 2021. Where the R&D activities of the manufacturing entity have resulted in intangible assets, 200% of the costs of the intangible assets will be amortized before tax.
