China's State Taxation Administration reported on July 29, 2026 that tax and fee cuts plus refunds under policies backing sci-tech innovation and manufacturing reached 1.91 trillion yuan (about US$267 billion) in the first half of 2026. The relief flows through mechanisms such as the permanent 200% R&D expense super-deduction, the 15% reduced corporate income tax rate for High-Tech Enterprises, and the 5% effective CIT rate for small low-profit firms.
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China's innovation & manufacturing tax breaks hit RMB 1.91 trillion in H1 2026
Why this matters for founders
Founders running R&D-heavy or manufacturing startups should confirm their bookkeeping captures qualifying R&D spend so they claim the 200% super-deduction, and pursue High-Tech Enterprise status to lock in the 15% CIT rate. Small teams under the low-profit thresholds should verify they are billed at the 5% effective CIT rate through end-2027.
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