Tax Incentive for Research and Development Activities

In calculating its taxable income for CIT purposes, an enterprise may claim additional deduction research and development expenses incurred for the development of new technologies, new products and new technological processes

Additional deductions on research and development expenses refers to the additional tax deduction in excess of the actual research and development expenses incurred for developing new technologies, new products and new technological processes. Such additional tax deduction for research and development expenses shall equal 50% of the amount actually incurred in the case where the research and development expenses are not required to be capitalized as intangible assets. Research and development expenses that are required to be capitalized as intangible assets shall be amortized based upon 150% of the capitalized amount.