State Administration of Taxation, Adjusting the Standards for Pre-tax Deduction of Advertising Expenses from Income Tax of Certain Industries Circular

国家税务总局关于调整部分行业广告费用所得税前扣除标准的通知

September 02, 2001 | BY

clpstaff &clp articles &

Issued: August 5 2001Main contents: According to the Circular, as of January 1 2001 enterprises in industries such as pharmaceuticals, food, communications,…

Clp Reference: 3230/2001.08.05 Promulgated: 2001-08-05

Issued: August 5 2001

Main contents: According to the Circular, as of January 1 2001 enterprises in industries such as pharmaceuticals, food, communications, software development, integrated circuits and real property may deduct up to 8% of their sales (business) revenues as advertising expenses. Any amount in excess of 8% may be deferred without limitation to subsequent tax years (Item One). High and new technology enterprises engaged in such businesses as software development and the production of integrated circuits, enterprises engaged in high and new technology venture capital investment as well as internet websites may apply for full deduction of their advertising expenses during the first five years after establishment (Item Two).
Related legislation: State Administration of Taxation, Pre-Tax Deductions from Enterprise Income Tax Procedures, May 16 2000, CLP 2000 No.6 p11

clp reference:3230/2001.08.05promulgated:2001-08-05

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