New policies in 2021
The Ministry of Finance and the State Administration of Taxation jointly issued the <Announcement Relating to the Pre-tax Deduction of Advertising and Business Promotion Expenses> (Cai Shui [2020] No. 43)
This policy is only a continuation of the policy of the Ministry of Finance Notice of the State Administration of Taxation on the Policy on Pre-tax Deduction of Advertising and Business Promotion Expenses (Cai Shui [2017] No. 41), the implementation of which is extended to December 31, 2025.
Advertising and business promotion expenses for Cosmetics manufacturing or sales, pharmaceutical manufacturing and beverage manufacturing (excluding alcohol manufacturing) enterprises, pre-tax deductions are allowed not exceeding 30% of the sales income, for the over part, allowed to carry forward the deduction in future tax years.
Decision of the Ministry of Finance on Amending the Measures for the Administration of Financial Instruments (Ministry of Finance of the People’s Republic of China Decree No. 104)
Below are the main changes that have been made and will be implemented from the 1st of January 2020:
- Increase the management of financial electronic bills, clarify that financial electronic bills and paper bills have the same legal effect, and regulate the management process.
- According to the reform practice of financial e-invoice management, special non-tax revenue invoices and fixed-rate invoices will be canceled.
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