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Both of the R&D expenses 1.5X pre-tax deduction and the relative flexibility in R&D accounting made R&D investments the most favorite instrument of companies to avoid corporate taxation. On the other side, the exogenous certification for HNTE offers good research opportunities to check how enterprises respond to tax rate changes by adjusting R&D investment. Using a data set from capital market during 2010 to 2012, empirical findings from DID analyses are consistent with the tax-induced R&D shifting. This paper enriches the research on R&D responses to tax rate changes by bringing evidences about R&D shifting behaviors in an important developing market. Furthermore, this study brings insights into the debates of R&D tax and accounting policies.