The Finance Ministry of China on 28 October 2013 released a circular that announced tax breaks for eligible enterprises that are involved in government-led shanty town renovations. This is part of an effort to encourage participation in the government-led project.
Circular “Cai Shui [2013] No. 65”(dated 30 September 2013) which is a joint Circular from the tax authorities and the Ministry of Finance states that the tax breaks will be retroactive from 1 January 2013. The tax breaks will allow renovation expenditures to be tax deductible from the tax base of companies involved in the government’s redevelopment of remote mining and forestry areas.
