Commercial Information Circulars
24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref : EIC 631/2/7
3 November2008
Dear Sirs,
Commercial Information Circular No. 544/2008
The Mainland of China : "Administrative Measures on Pre-tax Deduction
of Research and Development Expenses Incurred by Enterprises (Trial)"
of the Guangdong Province
The Guangdong Department of Science and Technology, the Economic and Trade Commission of Guangdong Province, the Guangdong Provincial Office of the State Administration of Taxation and the Guangdong Provincial Local Taxation Bureau have recently issued a notice concerning the "Administrative Measures on Pre-tax Deduction of Research and Development Expenses Incurred by Enterprises (Trial)". According to the Measures, enterprises may have 50% of their research and development expenses incurred in the development of new products, new technology or new techniques deducted on a cumulative basis when calculating taxable incomes according to rules, provided that the expenses have not become intangible assets to be calculated as current profits or losses. For those expenses which have become intangible assets, they will be amortized at a rate of 150% of the cost of the intangible assets. The Measures took retrospective effect on 1 January 2008. A copy of the relevant notice is attached at Annex (pdf format) for reference.
ENQUIRIES
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If you have any questions on the content of this circular, please contact Ms. Eugenia CHAN at 2398 5444.
Yours faithfully,
(Miss Meea WONG)
for Director-General of Trade and Industry
| Note : | While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same. |