China’s State Administration of Taxation clarified that since 1 January 2008, it has stopped implementing the policy where the costs incurred by an enterprise in purchasing domestically produced equipment can be regarded as a creditable amount in the calculation of enterprise income tax.

For more information, please refer to Guoshuifa No. 52 of 2008 at http://www.chinatax.gov.cn/n480462/n480513/n480902/7893062.html