The Chinese Ministry of Finance issued Announcement No. 15/2026 on Feb 2 2026, outlining interim measures for input VAT deductions on long‑term assets. The measures clarify the scope of long‑term fixed assets, set a 5 million‑yuan threshold for mixed‑use assets, and define the adjustment period for deduction. These rules apply to assets acquired from Jan 1 2026 or recognized before Dec 31 2025.
Assets with an original value exceeding 5 million Chinese yuan qualify for input VAT deduction.
The procedures apply to assets acquired from Jan 1 2026 or recognized in the accounting system before Dec 31 2025.
The adjustment period is the month when depreciation or amortization is first recorded, or when capitalized renovation is completed, provided the asset’s original value exceeds 5 million CNY.
The announcement was issued on Feb 2 2026 (Announcement No. 15/2026).
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