Beijing Municipality, Tax Policies in Support of Such Projects as the Practical Application of High and New Technology Achievements Implementing Measures

Issued: January 5 2002
Effective: January 1 2002

Main contents: The Measures allow profit-making high and new technology enterprises (including foreign investment enterprises) that have a growth of at least 10% in their research and development expenses to offset 50% of such actual expenses against their taxable income for the year (Article 3). Article 4 also allows high and new technology enterprises (including foreign investment enterprises) to amortize in two years the expenses incurred in purchase of advanced technology and patents. The expenses incurred in technology transfers, technological development and related technology consultancy and services by organizations such as foreign investment enterprises and foreign-funded scientific and technological research organizations and by foreigners are also exempted from business tax (Article 5). Accompanying computer software whose copyright and proprietorship are also transferred may also be exempted from business tax.
Related legislation: Beijing Municipality, Further Promoting the Development of High and New Technology Industry Several Provisions, Nov 9 2001; Tax Questions Relevant to Promoting Enterprise Technological Advancement Supplementary Circular, 1996 and Relevant Tax Questions Concerning Thorough Implementation of the«Central Committee of the Communist Party of China and State Council, The Decision on Strengthening Technological Innovation, Developing Advanced Science and Technology and Realizing Industrialization» Circular, Nov 2 1999, CLP 2000 No.5 p11