On March 5, 2017, in his speech at the National People’s Congress meeting, Premier Li Keqiang announced the increase of the super-deduction rate for R&D expenses from 50% to 75% for small and medium-sized technology companies.

Since the announcement, the MOF and the SAT have released Circular Caishui [2017] No. 34 to formalize this preferential policy for the period from January 1, 2017 to December 31, 2019.

Date of issue: May 2, 2017. Retroactive effective date: January 1, 2017