During the meeting of the State Council’s Standing Committee on 14 May 2019, which focused mainly on increasing internet speed and reducing tariffs, large space was also given to the positive role that enterprise have on increasing the country’s innovation level.
The meeting was particularly significant because it highlighted that the current preferential tax policy based on pre-tax R&D deductions will be adjusted and optimised in the next months. It was the first time that such a move was announced, although no additional details were given. Other noteworthy aspects highlighted during the meeting include the support that will continue to be given to (i) venture capital and risk investment firms, as well as to (ii) financial institutions to increase their mid-long term loans to manufacturing enterprises switching towards smart, green and service-oriented models.
MOF’s Notice on Increasing the Proportion of Pre-tax Deduction for R&D expenditure (Cai Shui  No. 99)