Announcement on the Enterprise Income Tax Policy Concerning Deductions for Equipment and Implements2023-08-18 15:52:46
Announcement on the Enterprise Income Tax Policy Concerning Deductions for Equipment and Implements
Announcement of the Ministry of Finance and the State Taxation Administration [2023] No. 37
August 18, 2023
With a view to guiding enterprises to make greater investment in equipment and implements, relevant enterprise income tax policy is announced as follows:
I. Enterprises are allowed to include on a lump-sum basis the costs of equipment and implements that are newly bought between January 1, 2024 and December 31, 2027, into the costs and expenditures of the current period, and deduct such costs in full when the taxable income is calculated, provided that the unit value of such equipment and applicants is worth CNY5 million or below; and such costs will no longer be depreciated within certain years. However, if the unit value is above CNY5 million, the equipment and implements shall still be subject to applicable rules set out in the Implementing Regulations of the Enterprise Income Tax Law, the Circular of the Ministry of Finance and the State Taxation Administration on Improving the Enterprise Income Tax Policies Relating to the Accelerated Depreciation of Fixed Assets (Cai Shui [2014] No. 75), the Circular of the Ministry of Finance and the State Taxation Administration on Further Improving the Enterprise Income Tax Policies Relating to the Accelerated Depreciation of Fixed Assets (Cai Shui [2015] No. 106), and other regulations.
II. For the purposes of this Circular, the term "equipment and implements" refers to any fixed assets other than houses and buildings.
I. Enterprises are allowed to include on a lump-sum basis the costs of equipment and implements that are newly bought between January 1, 2024 and December 31, 2027, into the costs and expenditures of the current period, and deduct such costs in full when the taxable income is calculated, provided that the unit value of such equipment and applicants is worth CNY5 million or below; and such costs will no longer be depreciated within certain years. However, if the unit value is above CNY5 million, the equipment and implements shall still be subject to applicable rules set out in the Implementing Regulations of the Enterprise Income Tax Law, the Circular of the Ministry of Finance and the State Taxation Administration on Improving the Enterprise Income Tax Policies Relating to the Accelerated Depreciation of Fixed Assets (Cai Shui [2014] No. 75), the Circular of the Ministry of Finance and the State Taxation Administration on Further Improving the Enterprise Income Tax Policies Relating to the Accelerated Depreciation of Fixed Assets (Cai Shui [2015] No. 106), and other regulations.
II. For the purposes of this Circular, the term "equipment and implements" refers to any fixed assets other than houses and buildings.
