Chinese Tax Regulation Update

CNBW member CMS law - tax - future (Shanghai) provides with an overlook:
"Chinese Tax Regulation Update - September 2022" 

Topic:
Extension of the Vehicle Purchase Tax ("VPT") exemption policy for new energy vehicles
What is new?
Taxpayers will continue to be exempt from VPT for purchasing new energy vehicles ("NEVs") during the period from 1 January 2023 to 31 December 2023. The qualified NEVs are subject to the "Catalogue of NEV Models Exempt from VPT" published by the SAT and the MIIT. The date of purchase of the NEVs refers to the date of issuance of a valid certificate such as a unified sales invoice for motor vehicles or a special customs duty payment certificate.

Topic:
Increase of pre-tax deduction for supporting scientific and technological innovation
What is new?
The Announcement has further optimized the pre-tax deduction policy for the High and New Tech Enterprises ("HNTEs") and the companies which are enjoying the 75% super-deduction of R&D costs currently. The following in the Announcement are
worth attention:

.  The costs of the equipment and appliances newly purchased by the HNTEs during the period from 1 October 2022 and 31 December 2022 can be fully deducted against the taxable income on a one-off basis and an additional super-deduction of 100% of the purchase costs is allowed. If the deductions above lead to tax losses of the company, the tax losses can be carried forward to the subsequent years for utilization according to the tax laws (e.g. the current tax law provides a 10-year tax loss recovery period for HNTEs) 

.  For enterprises that currently enjoy a 75% super-deduction of R&D costs, the super-deduction ratio is increased to 100% for the period from 1 October 2022 to 31 December 2022.

.  The R&D costs of the fourth quarter of 2022 for income tax declaration can be calculated according to either the actual amount incurred for the fourth quarter or the actual amount of R&D costs incurred for the whole year 2022 multiplied by the proportion of the number of operating months during the period from 1 October 2022 to 31 December 2022 accounting for the number of actual operating months in 2022.

Download of complete CMS overlook: here