China to Further Support R&D

China to Further Support R&D

Ministry of Finance, State Administration of Taxation and Ministry of Science and Technology jointly announced on September 21 that a 25% of pre-tax deduction on R&D cost will be adopted to encourage more investment in R&D and support scientific innovation.

Technologies involved in the rubber industry include development and mass production of key feedstock of radical tires, new synthetic technologies, new rubber materials, technology development of rubber and plastic auxiliaries, etc.

In other words, when the rubber enterprises conduct the above research, proportional R&D investment can be deducted from income tax. The tax will be greatly reduced accordingly, which will encourage rubber enterprises to improve scientific research ability.