Qualified Enterprise Income Tax Policy of Key Industries in “New Area”

For qualified legal person enterprises engaged in products (technologies) related to core links in key areas such as integrated circuits, artificial intelligence, biomedicine, civil aviation, and carrying out substantive production or R&D activities in the new area, the enterprise income tax shall be levied at a reduced rate of 15o/o within 5 years from the date of establishment. 

Applicable Time

This notice shall come into force since January 1, 2020. Eligible legal person enterprises registered in the new district before December 31, 2019 and engaged in substantive production or R&D activities of the businesses listed in the Catalogue can be implemented in accordance with this Notice from 2020 to the five-year period when the enterprise is established.

Necessary Conditions of “Qualified Enterprises”

Enterprises have fixed production and business premises, fixed staff, software and hardware support conditions matching with production or R&D activities, and carry out the above-mentioned R&D and manufacturing business on this basis.

At least one key product (technology) is included in the main products developed or sold by the enterprise.

Necessary Conditions of “Qualified Enterprises” (2)

The main conditions of enterprise investment: the technical strength is in the fore front of the industry or the technic al strength is leading in the industry; R&D and production conditions of enterprises : key core technologies that have been engaged in scient fic research and production for a long time in related fields at home and abroad or have independent intellectual property rights system; The enterprise has mature research and development results put into use; Or obtain investment from financing institutions.