Cai Shui  No.119 is the most important regulatory change to the R&D Super Deduction in years. In relation to this, the State Administration of Taxation released Announcement  No. 97 to provide more detailed implementation standards in respect of Cai Shui  No.119. Announcement  No. 97 provides detailed guidance in the areas of scope of R&D personnel, R&D expense allocation, contract R&D, criteria for determining the negative industries, accounting and allocation requirement, requirement for recording filing, post filing administration and review and execution time.