Fujian's provincial tax bureau launched a risk-control system called Yan Shui Tong in March, piloting it in Longyan to watch risks in R&D super-deduction claims. It works in three stages. Before a project starts, tax officials work with science and technology departments to clarify the technical route and ledgers, and keep whitelisted firms undisturbed. During filing, R&D-to-production mapping models compare industry data and flag anomalies such as an unusually high share of direct input costs for human review. Afterwards, tracking ledgers and standardised indicator scores tell firms where they fall short. By end-September Longyan had reviewed 148 cases, cut 1.152 billion yuan of deductions, confirmed 105 million yuan of risk tax and corrected 56 filing deviations.
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Fujian's Yan Shui Tong System Controls R&D Tax Deduction Risks
Fujian's provincial tax bureau launched the Yan Shui Tong risk-control system for R&D super-deduction claims in March, piloting it in Longyan. The system works in three stages: guidance before projects start, including joint review with science and technology departments and lighter-touch treatment for whitelisted firms; smart monitoring during filing, using R&D-to-production mapping models to flag anomalies for human review; and follow-up evaluation with standardised indicators. By end-September Longyan had reviewed 148 cases, cut 1.152 billion yuan of deductions and confirmed 105 million yuan of risk tax, correcting 56 filing deviations during annual settlement.
2026-11-02