I. Policy Content  

For equipment and appliances newly purchased by high-tech enterprises during the period from October 1, 2022 to December 31, 2022, 100% of the purchase amount is allowed to be deducted in full when calculating the taxable income for the current year, and an additional 100% pre-tax deduction is also allowed.  

The term "equipment and appliances" refers to fixed assets other than houses and buildings; "purchase" includes acquisition in monetary form or self-construction, where fixed assets acquired in monetary form include used fixed assets purchased; the conditions and management measures for high-tech enterprises shall be implemented in accordance with the *Notice of the Ministry of Science and Technology, the Ministry of Finance, and the State Taxation Administration on Revising and Issuing the Measures for the Administration of the Recognition of High-tech Enterprises* (Guoke Fahuo〔2016〕No. 32).  

II. Applicable Conditions  

All enterprises that hold the qualification of high-tech enterprises within the fourth quarter of 2022 are eligible for this policy. If the deduction is insufficient in the year when the enterprise chooses to apply this policy, the balance can be carried forward to subsequent years for deduction in accordance with the current relevant regulations.  

The purchase time of fixed assets shall be confirmed in accordance with the following principles:  

1. For fixed assets purchased in monetary form, except those purchased by installment payment or credit sale, the time shall be confirmed according to the invoice issuance time;  

2. For fixed assets purchased by installment payment or credit sale, the time shall be confirmed according to the arrival time of the fixed assets;  

3. For self-constructed fixed assets, the time shall be confirmed according to the completion settlement time.  

III. Operation Process  

(1) Enjoyment Method  

Enterprises can enjoy the preference in the way of "self-judgment, declaration for enjoyment, and relevant materials retained for future reference". The main materials to be retained for reference are as follows:  

1. Materials related to the purchase time of fixed assets (such as invoices for fixed assets purchased in monetary form, explanations of arrival time for fixed assets purchased by installment payment or credit sale, explanations of completion settlement for self-constructed fixed assets, etc.);  

2. Accounting vouchers for fixed assets;  

3. Ledgers of differences between tax treatment and accounting treatment for purchased equipment and appliances.  

(2) Handling Channels  

It can be handled through tax service halls (places) or electronic tax bureaus. The specific locations and websites can be inquired in the "Tax Services" section of the website of the taxation bureau of the province (autonomous region, municipality directly under the Central Government, or city with separate state planning).  

(3) Declaration Requirements  

When handling the quarterly prepayment declaration and annual tax declaration of corporate income tax, high-tech enterprises can enjoy the preference by filling in the relevant lines of the declaration form.  

(Source: State Taxation Administration)