Caishui  No. 54
The Ministry of Finance and SAT jointly issued a regulation on 7 May stipulating that equipment and tools that are purchased during the period 2008-2020 could be recognized one-off as cost of sales in the current period and fully deductible for CIT purpose on the condition that the unit price is below 5 million CNY. No depreciation is required. For equipment and tools over 5 million CNY, depreciation shall still be done with reference to related tax regulations.
Equipment and tools refer to the fixed assets other than buildings and construction structure.