MoF and SAT clarify Corporate Income Tax deduction rules for advertising and promotional expenses

MoF and SAT clarify Corporate Income Tax deductio...

China alert - Issue 14, June 2012   The Ministry of Finance (MoF) and the State Administration of Taxation (SAT) jointly issued Cai Shui [2012] No. 48 (Circular 48) on 30 May 2012, setting out the Corporate Income Tax (CIT) deduction rules for advertising and promotional expenses (A&P expenses) in certain industries or under certain business arrangements. Circular 48 provides that the deduction rules for A&P expenses contained in Cai Shui [2009] No.72 (Circular 72) regarding selected industries will basically continue to apply; however, the deduction rules for allocated A&P expenses under certain arrangements have been adjusted. The CIT deduction rules for A&P expenses stipulated in Circular 72 came to an end on 31 December 2010. Circular 48 picks up where Circular 72 left off, taking effect from 1 January 2011 to 31 December 2015.

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MoF and SAT clarify Corporate Income Tax deduction rules for advertising and promotional expenses

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