China MOF Announces Interim Measures on Input VAT Deduction for Long-Term Assets

The Chinese Ministry of Finance Feb. 2 posted Announcement No. 15/2026, on interim measures for input VAT deductions on long-term assets. The announcement clarifies: 1) the scope of long-term fixed assets; 2) input VAT deduction procedures for long-term mixed-use assets acquired from Jan. 1, 2026, or recognized in the accounting system before Dec. 31, 2025, that have an original value exceeding 5 million Chinese yuan (US$720,648); 3) the adjustment period for long-term mixed-use assets acquired from Jan. 1, of the month during which depreciation or amortization is first recorded or the capitalized renovation is completed, and its original value exceeds ...