Starting this year, the tax deduction program for businesses has been expanded.

The VAT Law and its implementing regulations officially came into effect this year, with one major change being the expansion of deductible tax items for businesses. The general calculation method for VAT payable amount is to deduct input tax from output tax, so the more input tax that can be deducted, the less VAT the company has to pay. Before 2026, VAT regulations explicitly stated that input tax on purchased catering services, residential daily services, and entertainment services cannot be deducted from output tax. Article 22 of the new VAT Law, which came into effect this year, makes adjustments to this rule by specifying that input tax corresponding to catering services, residential daily services, and entertainment services purchased by taxpayers and directly used for consumption cannot be deducted from output tax. This new regulation adds the clause "directly used for consumption" compared to previous regulations.