Tax cuts to support tech upgrades

China has made overseas outsourcing research and development expenditure available to additional tax deduction, as part of its continuous efforts to ease tax burdens on enterprises and promote technology upgrades, said the State Administration of Taxation on Thursday.

From this year, 80 percent of the expenditure incurred by companies on overseas outsourcing R&D will be eligible for further deductions before tax. This will help lower their tax burden and encourage more investment in technological innovation, said Liu Baozhu, deputy director of the department of income tax at the SAT.

The new policy virtually gives tax breaks to enterprises outsourcing R&D activities to overseas institutions, aiming to encourage enterprises to "take advantage of global technology resources" to promote high-tech and industrial upgrades, Liu said.