The accelerated depreciation methods will be allowed in China to promote technology innovation and economic development. The Executive Meeting of the State Council of China announced on 24 September 2014 that the R&D made on or after 1 January 2014 with unit value of no more than RMB1 million (US$163K) is fully deductible in the year of acquisition for corporate income tax purposes.
Unit value in excess of RMB1 million (US$163K) would be eligible for either an accelerated depreciation (60% of regular depreciation life) or a double declining balance method. Fixed assets acquired on or after 1 January 2014 by entities like Biopharmaceutical industry, Manufacturing of special machineries, Manufacturing of transportation equipment for railway, shipping, aviation, aerospace and other conveying units, Manufacturing of computers, telecommunication or other electronic devices, Manufacturing of instruments and meters and Information transmission, software and information technology would be eligible for either accelerated depreciation or double declining balance method.
