TapTechNews July 17th news, the Ministry of Finance and the Taxation General Administration jointly released the 'Announcement on the Corporate Income Tax Policy for the Digital and Intelligent Transformation of Special Equipment for Energy Conservation and Water Saving, Environmental Protection, and Work Safety'.
During the period from January 1, 2024 to December 31, 2027, for the digital and intelligent transformation investment of special equipment (hereinafter referred to as special equipment) such as energy conservation and water saving, environmental protection, and work safety made by enterprises, a portion not exceeding 50% of the original tax basis at the time of the purchase of the special equipment can be used to offset 10% of the enterprise's taxable amount in the current year.
If the taxable amount of the enterprise in the current year is insufficient to be offset, it can be carried forward to subsequent years, but the carry-forward period shall not exceed five years at most. The investment in the digital and intelligent transformation of special equipment made by enterprises using financial allocation funds cannot be used to offset the enterprise's taxable amount of corporate income tax in the current year.
TapTechNews note: The digital and intelligent transformation of special equipment refers to that enterprises use information technology and digital technology to make technical improvements and optimizations to special equipment, thereby improving the digital and intelligent level of the equipment. Specifically, it includes multiple aspects such as data collection, data transmission and storage, data analysis, intelligent control, and digital security and protection.