> Although you can often take losses from a previous year to offset current income
This is true, usually for 5 years.
> So if you do a huge amount of capital investment you can offset against profits for years.
Articles 11, 12, 18, and 28 [0] say that capital investment can reduce tax based on the depreciation or amortization cost, not by carrying forward the investment as a loss.
Nothing in the Chinese tax law says that DeepSeek can receive tax returns or free handouts from the government because they do R&D.
> Although you can often take losses from a previous year to offset current income
This is true, usually for 5 years.
> So if you do a huge amount of capital investment you can offset against profits for years.
Articles 11, 12, 18, and 28 [0] say that capital investment can reduce tax based on the depreciation or amortization cost, not by carrying forward the investment as a loss.
Nothing in the Chinese tax law says that DeepSeek can receive tax returns or free handouts from the government because they do R&D.
[0] https://fgk.chinatax.gov.cn/eng/c102962/c102967/c102997/c103...