China Extends Preferential Deduction for Advertising and Promotion Expenses

On 2 June 2017, China's Ministry of Finance issued Circular 41/2017, which extends the preferential tax deductions for advertising and business promotion expenses. Under general rules, such expenses are deductible up to 15% of sales for the year. However, for enterprises engaged in the manufacturer or sale of cosmetics, manufacture of pharmaceuticals, and manufacture of beverages (excluding alcoholic beverages), a deduction up to 30% of sales was allowed through 31 December 2015. Circular 41…