Announcement of the Ministry of Finance and the State Taxation Administration on the Enterprise Income Tax Policy With Respect to Deductions for Equipment and Apparatus

Ministry of Finance   State Taxation Administration Announcement No. 37 of 2023

In order to encourage enterprises to increase investment in equipment and apparatus, relevant policies for enterprise income tax are hereby announced as follows:

1. Equipment and apparatus newly purchased by enterprises between January 1, 2024 and December 31, 2027, of which the unit value does not exceed five million yuan, are allowed to be included in the current cost on a one-off basis and fully deducted when calculating the taxable income, instead of being depreciated by year. If the unit value exceeds five million yuan, the depreciation policy shall be implemented in accordance with provisions of Implementation Regulations for Enterprise Income Tax Law of the People’s Republic of China, Circular of the Ministry of Finance and the State Taxation Administration on Improving the Enterprise Income Tax Policy With Respect to Accelerated Depreciation of Fixed Assets  (Caishui [2014] No. 75), and Circular of the Ministry of Finance and the State Administration Taxation on Further Improving the Enterprise Income Tax Policy With Respect to Accelerated Depreciation of Fixed Assets (Caishui [2015] No. 106) .

2. The term “equipment and apparatus” mentioned in this Announcement refers to fixed assets exclusive of houses and buildings.

Ministry of Finance  State Taxation Administration

August 18, 2023

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.