Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/21/2012

China - Corporate tax deduction for advertising, promotion expenses 

June 21:  China’s tax authorities issued guidance to clarify and retroactively extend the deduction, for corporate income tax purposes, of advertising and promotion expenses in certain industries or under certain business arrangements.

China’s Ministry of Finance and the State Administration of Taxation jointly issued Cai Shui [2012] No. 48 (30 May 2012), setting out the corporate income tax rules for deducting advertising and promotion expenses in certain industries or under certain business arrangements.


In general, the new guidance extends the rules (originally issued in 2009 and terminating in December 2010) for deducting advertising and promotion expenses in certain industries. However, with the recent guidance, the rules for deducting these expenses under certain arrangements have been adjusted.


With the new guidance, the rules for deducting advertising and promotion expenses are made effective, retroactively from 1 January 2011 and will continue to apply to 31 December 2015.


Read a June 2012 report [PDF 250 KB], prepared by the KPMG member firms in Hong Kong and China: MoF and SAT clarify Corporate Income Tax deduction rules for advertising and

promotional expenses




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