Expert tips for Yijiu

Tax preference for high-tech enterprises:

1. The enterprise income tax of high-tech enterprises shall be levied at a reduced rate of 15%

2. The loss carrying forward period of high-tech enterprises and small and medium-sized technology-based enterprises has been extended to 10 years

3. The part of employee education expenditure incurred by high-tech enterprises that does not exceed 8% of total wages and salaries is allowed to be deducted when calculating the taxable income of enterprise income tax; The excess is allowed to be carried forward and deducted in subsequent tax years

Beneficial presenter

High tech enterprises

Benefits

Preferential tax rate, longer period for making up losses, higher deduction ratio of employee education expenses

Expert reminder of Yijiu

To be recognized as a high-tech enterprise, the following conditions must be met simultaneously:

(1) The enterprise shall be registered for more than one year when applying for recognition.

(2) The enterprise obtains the ownership of intellectual property rights that play a key role in supporting the technology of its main products (services) through independent research and development, transfer, donation, merger and acquisition, etc.

(3) The technologies that play a core supporting role in the main products (services) of the enterprise fall within the scope of the National Key Supported High and New Technology Fields.

(4) The proportion of scientific and technological personnel engaged in R&D and related technological innovation activities in the total number of employees of the enterprise in the current year shall not be less than 10%.

(5) The proportion of the total research and development expenses in the total sales revenue of the same period in the recent three accounting years (calculated according to the actual operating time if the actual operating period is less than three years) meets the corresponding requirements.

(6) In the past year, the income from high-tech products (services) accounted for no less than 60% of the total income of the enterprise in the same period.

(7) The evaluation of enterprise innovation ability should meet the corresponding requirements.

(8) No major safety and quality accidents or serious environmental violations occurred in the year before the application for recognition.

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key word

Recognition conditions of high-tech tax preference

Yijiu expert service

Agent bookkeeping and tax declaration, withholding tax refund, tax compliance planning, financial and tax experts consulting IPO consulting

In 2022, after the CPC Central Committee and the State Council issued new combined tax support policies according to the economic development situation, the State Administration of Taxation sorted out relevant tax preferential policies and measures around the main links and key areas of innovation and entrepreneurship, covering the entire life cycle of enterprises. Today, I will show you: tax incentives for high-tech enterprises ↓

The enterprise income tax of high-tech enterprises shall be levied at a reduced rate of 15%

【 Subject 】

National key high-tech enterprises

[Preferential content]

The enterprise income tax of high-tech enterprises supported by the State shall be levied at a reduced rate of 15%.

[Conditions for enjoyment]

1. High and new technology enterprises refer to resident enterprises registered in China (excluding Hong Kong, Macao and Taiwan) that continue to carry out research and development and transform technological achievements in the National Key Supported High and New Technology Fields, form core independent intellectual property rights of enterprises, and carry out business activities on this basis.

2. The high-tech enterprise shall be recognized by the high-tech enterprise recognition management organization composed of the science and technology administrative department of each province (autonomous region, municipality directly under the Central Government, and city specifically designated in the state plan) and the financial and tax departments at the same level.

3. To be recognized as a high-tech enterprise, the following conditions must be met simultaneously:

(1) The enterprise shall be registered for more than one year when applying for recognition.

(2) The enterprise obtains the ownership of intellectual property rights that play a key role in supporting the technology of its main products (services) through independent research and development, transfer, donation, merger and acquisition, etc.

(3) The technologies that play a core supporting role in the main products (services) of the enterprise fall within the scope of the National Key Supported High and New Technology Fields.

(4) The proportion of scientific and technological personnel engaged in R&D and related technological innovation activities in the total number of employees of the enterprise in the current year shall not be less than 10%.

(5) The proportion of the total research and development expenses in the total sales revenue of the same period in the recent three accounting years (calculated according to the actual operating time if the actual operating period is less than three years) meets the corresponding requirements.

(6) In the past year, the income from high-tech products (services) accounted for no less than 60% of the total income of the enterprise in the same period.

(7) The evaluation of enterprise innovation ability should meet the corresponding requirements.

(8) No major safety and quality accidents or serious environmental violations occurred in the year before the application for recognition.

[Policy Basis]

1. Paragraph 2 of Article 28 of the Enterprise Income Tax Law of the People's Republic of China

2. Article 93 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China

3. Notice of the Ministry of Finance and the State Administration of Taxation on the Applicable Tax Rate and Tax Credit for Overseas Income of High tech Enterprises (CS [2011] No. 47)

4. Notice of the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation on the Revision and Issuance of the Administrative Measures for the Recognition of High tech Enterprises (GKFH [2016] No. 32)

5. Notice of the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on the Revision and Issuance of the Guidelines for the Administration of the Recognition of High tech Enterprises (GKFH [2016] No. 195)

6. Announcement of the State Administration of Taxation on Issues Related to the Implementation of Preferential Income Tax Policies for High tech Enterprises (2017 No. 24)

The loss carrying forward period of high-tech enterprises and small and medium-sized technology-based enterprises has been extended to 10 years

【 Subject 】

High tech enterprises and technology-based SMEs

[Preferential content]

Since January 1, 2018, the enterprises that have the qualification of high-tech enterprises or small and medium-sized technology-based enterprises (hereinafter collectively referred to as the qualification) in that year are allowed to carry forward the losses that have not been made up in the five years before the qualification year, and the maximum carrying forward period is extended from five years to ten years.

[Conditions for enjoyment]

1. High tech enterprises refer to the high-tech enterprises recognized in accordance with the Notice of the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on the Revision and Issuance of the Administrative Measures for the Recognition of High tech Enterprises (GKFH [2016] No. 32).

2. Small and medium-sized technology-based enterprises refer to those enterprises that have obtained the registration number of small and medium-sized technology-based enterprises in accordance with the Notice of the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation on Printing and Distributing the Evaluation Measures for Small and Medium sized Technological Enterprises (GKFZ [2017] No. 115).

[Policy Basis]

Notice of the Ministry of Finance and the State Administration of Taxation on Extending the Period for Carrying forward Losses of High tech Enterprises and Small and Medium sized Technological Enterprises (CS [2018] No. 76)

The enterprise income tax of technologically advanced service enterprises shall be levied at a reduced rate of 15%

【 Subject 】

Recognized technology advanced service enterprise

[Preferential content]

The recognized technologically advanced service enterprises shall be subject to the enterprise income tax at a reduced rate of 15%.

[Conditions for enjoyment]

1. Technology advanced service enterprises are legal person enterprises registered in China (excluding Hong Kong, Macao and Taiwan).

2. Engaging in one or more technology advanced service businesses in the Scope of Technology Advanced Service Business Identification (Trial), adopting advanced technology or having strong R&D capability, among which the scope of technology advanced service business that service trade technology advanced service enterprises must meet shall be implemented in accordance with the Scope of Technology Advanced Service Business (Service Trade).

3. Employees with college degree or above account for more than 50% of the total number of employees.

4. The income from the technology advanced service business in the Scope of Technology Advanced Service Business Identification (Trial) accounted for more than 50% of the total income of the enterprise in the current year, of which the income from the technology advanced service business in the Scope of Technology Advanced Service Business (Service Trade) accounted for more than 50% of the total income of the enterprise in the current year.

5. The income from engaging in offshore service outsourcing business shall not be less than 35% of the total income of the enterprise in the current year.

[Policy Basis]

1. Notice of the Ministry of Finance, the State Administration of Taxation, the Ministry of Commerce, the Ministry of Science and Technology, and the National Development and Reform Commission on Promoting the Income Tax Policy for Technology Advanced Service Enterprises to the Whole Country (CS [2017] No. 79)

2. Notice of the Ministry of Finance, the State Administration of Taxation, the Ministry of Commerce, the Ministry of Science and Technology, the National Development and Reform Commission on Promoting the Income Tax Policy of Technological Advanced Service Enterprises in the Pilot Areas of Innovative Development of Service Trade to the Whole Country (CS [2018] No. 44)