Core Viewpoint - The article discusses the new tax policy announced by the Ministry of Finance and the State Taxation Administration regarding the digital and intelligent transformation of energy-saving, water-saving, environmental protection, and safety production specialized equipment, which allows companies to offset a portion of their corporate income tax from 2024 to 2027 [2]. Summary by Sections 1. Main Content of the Policy - Companies can offset 10% of the amount spent on the digital and intelligent transformation of specialized equipment, provided that the investment does not exceed 50% of the original tax basis of the equipment purchased [4][6]. 2. Eligible Transformation Investments - The digital and intelligent transformation investments made between January 1, 2024, and December 31, 2027, are eligible for corporate income tax offset [7]. 3. Amount and Method of Offset - The offset amount is calculated as 10% of the transformation investment, limited to the portion that does not exceed 50% of the original purchase price of the specialized equipment [9][10]. 4. Carry Forward of Unused Offset - If the corporate income tax payable in a given year is insufficient to utilize the offset, the unused portion can be carried forward for up to five years [11]. 5. Specific Types of Eligible Equipment - The specialized equipment eligible for this policy must be listed in the relevant tax exemption directories issued by the Ministry of Finance and other authorities [12]. 6. Definition of Digital and Intelligent Transformation - This transformation refers to the use of information and digital technologies to improve the operational efficiency and capabilities of specialized equipment, including data collection, transmission, analysis, and intelligent control [14]. 7. Exclusions from the Offset Policy - Companies cannot enjoy the offset if they do not actually use the transformed equipment, transfer or lease the equipment within five tax years after transformation, or if the transformation is funded by government grants [18]. 8. Accounting Treatment Requirements - Companies must separately account for the expenses related to the digital and intelligent transformation of specialized equipment to qualify for the tax benefits [20]. 9. Method to Enjoy the Policy - Companies should prepare a transformation plan or obtain a registered technical development or service contract to retain for future reference [21]. 10. Differences from Previous Tax Policies - The new policy allows for a 10% offset on transformation investments made from 2024 to 2027, whereas previous policies focused on the purchase of specialized equipment without the transformation aspect [22].

Group 1 - The article discusses the definition and scope of specialized equipment, which refers to equipment purchased and used by enterprises that meet specific criteria outlined in government notifications [2] - Specialized equipment can undergo digital and intelligent transformation, which involves using information and digital technologies to improve the equipment's performance and operational efficiency [3] - The transformation process includes data collection, transmission, storage, analysis, intelligent control, and digital security measures to enhance the equipment's capabilities [5] Group 2 - The article addresses common questions regarding the investment in digital and intelligent transformation of specialized equipment, clarifying what constitutes eligible expenses [6] - It explains that enterprises must use the transformed specialized equipment themselves to enjoy tax benefits, and if they transfer or lease the equipment within five years, they must stop enjoying the benefits and repay any tax credits [6] - The article also states that investments made using government funding for the transformation cannot be used to offset the enterprise's taxable income for the year [6]

Core Viewpoint - The article discusses the tax incentives for enterprises that invest in the digital and intelligent transformation of specialized equipment, emphasizing the importance of these upgrades for enhancing operational efficiency and data security [3][4]. Group 1: Digital and Intelligent Transformation - The article highlights the use of data analysis techniques for deep analysis of specialized equipment, enabling fault diagnosis, predictive maintenance, and operational optimization [3]. - Automation and intelligent technologies are utilized to upgrade monitoring, alarm systems, dynamic parameter adjustment, and feedback control for specialized equipment [3]. Group 2: Tax Incentives and Regulations - Enterprises can enjoy tax benefits for expenditures that form fixed asset value during the digital and intelligent transformation of specialized equipment, excluding VAT refunds and costs related to transportation, installation, and debugging [3]. - The taxable income for corporate income tax is defined as the annual taxable income multiplied by the applicable tax rate, after deducting any reductions or exemptions as per tax laws and policies [3]. - Enterprises must use the transformed specialized equipment themselves to qualify for tax incentives, and if they transfer or lease the equipment within five tax years, they must stop enjoying the benefits and repay any previously exempted corporate income tax [3]. - Financing lease agreements that result in ownership transfer of specialized equipment to the lessee allow the lessee to enjoy the same tax benefits, but if ownership does not transfer, the lessee must cease benefits and repay any exempted taxes [3].