Circular of the State Administration of Taxation on Issues concerning the Deduction of Taxable Income on Technology Development Costs of Foreign-Invested Enterprises

Circular of the State Administration of Taxation on Issues concerning the Deduction of Taxable Income on Technology Development Costs of Foreign-Invested Enterprises

Guo Shui Fa [1999] No.173

September 17, 1999

The national taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan, the local taxation bureau of Shenzhen City,

Recently, the State Council has decided that in those enterprises with foreign investment where technology development fee has increased by over 10% (including 10%) than that for the previous year, shall be permitted, upon examination and approval by the taxation authorities, to re-deduct 50% of the amount actually used for technology development fee for the taxable income for the same year.

The relevant issues with the implementation of this preferential taxation policy are notified as follows:

I.
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