Tax Incentive for Advanced and New Technology Enterprises

The CIT rate applicable to Advanced and New Technology Enterprises

eligible for key support from the State shall be reduced to 15%. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Advanced and new technology enterprises eligible for key support from the State refers to enterprises that own core proprietary intellectual property rights, and that meet all of the following conditions:

(1) Products (services) are within the scope prescribed in the Advanced and New Technology Sectors Eligible for Key Support from the State;

(2) The proportion of research and development expenditures to sales revenue is not lower than a prescribed ratio;

(3) The proportion of the revenue derived from high and new technology products (services) to the total revenue of the enterprise is not lower than a prescribed ratio;

(4) The proportion of the number of research and development personnel to the number of all employees is not lower than a prescribed ratio; and

(5) Other conditions prescribed by the administrative measures for assessing the qualifications of advanced and new technology enterprises.