From the start of the year to date, China has reportedly increased the additional deduction rate for R&D expenses for manufacturers from 75 percent to 100 percent – a policy that is said to have boosted the confidence of businesses and made them more determined than ever to increase their R&D investment.  

Statistics showed that by the end of September, Quzhou city – located in East China's Zhejiang province – had in the current year reduced the tax burden and costs for local enterprises by 3.23 billion yuan ($502.26 million).

Moreover, small and micro-sized enterprises had in the same period received tax deductions from the new policy of 915 million yuan, reportedly claiming additional R&D policy deductions of 700 million yuan and achieving sustainable development.

The Quzhou municipal government is understood to have guided the businesses to apply for tax reductions and fee reductions – such as additional R&D deductions for new and high technology and exemptions on real-estate tax for enterprises.

From January to September, the city is reported to have reduced the burden and costs of enterprises by more than 14 million yuan, greatly relieving their financial pressures.