July 25 2018

MOF, SAT Extend Loss Carry-Forward Period for High-tech Enterprises

The Ministry of Finance and the State Administration of Taxation recently announced the Circular about Extending the Period for High-tech Enterprises and Small and Medium-sized Technology Firms to Carry Forward Losses.

According to the circular that has been effective from January 1, 2018, when a firm has been recognized as a high-tech enterprise or small and medium-sized technology firm, its business losses in the previous five years can be carried forward in as long as ten years, up from five years in the past.