Enterprises net tax breaks for investing in overseas R&D
27 June, 2018
The Ministry of Finance has put forward a new tax deduction rule to encourage enterprises to increase R&D investment and strengthen innovation capacities, Xinhua news agency reported.
When a company commissions foreign institutions to conduct R&D activities, only 80% of the actual expense incurred during the R&D will be counted as taxable spending.
And if overseas R&D spending does not exceed two-thirds of the approved domestic R&D cost, it can be deducted before corporate income tax.
Companies are required to sign a technology development contract with the commissioned institutions and register with the administrative department of science and technology.
The new rule has been effective from the beginning of this year.
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