On 7 May 2018, the Ministry of Finance of the
People's Republic of China and the State Administration of
Taxation jointly released the Notification about the Policy of
Enterprise Income Tax Deduction for Equipment "CAISHUI [ 2018]
No. 54", a new policy regarding enterprise income
tax.
It states that "If the new acquisition of plant or
equipment does not exceed RMB five million per unit, which the
company acquired between 1 January 2018 and 31 December 2020, the
acquisition cost is allowed to be deducted from taxable income in
full, instead of deducting via the asset's annual depreciation.
If the unit price exceeds RMB five million, it shall still follow
the previous Regulations of the Enterprise Income Tax Law, which
are CAISHUI [2014] No. 75, CAISHUI [2015] No. 106, and other
relevant regulations.
