Beijing Municipality, Encouraging the Establishment of Scientific and Technological Research and Development Organizations in Beijing Provisions

Promulgated: August 26 2002
Effective: October 1 2002
Applicability: The Provisions apply to foreign or domestic organizations or individuals engaged in the establishment of certified scientific and technological research and development
organizations (Article 2).

Main contents: The municipal science and technology commission performs certification and re-assesses certified organizations every two years (Article 3). Before seeking certification, the research organization must register with the municipal administration department for industry and commerce (Article 4). Research organizations that meet the standards for high and new technology enterprises are exempt from the high and new technology enterprise certification process and may apply directly to the municipal science and technology commission for certification as a high and new technology enterprise (Article 7).
Articles 8 to 26 contain provisions favourable to research organizations. These provisions relate to hiring, foreign exchange, import duties, taxation and intellectual property. A research organization may apply for a Beijing Employment and Residence Permit for technicians and management personnel that it recruits from outside Beijing (Article 8). Foreign organizations or individuals, and those from Hong Kong, Macao, and Taiwan, may open a foreign-exchange account (Article 10). Imported equipment may be exempt from customs duty and import and export value-added taxes (Article 11). Tax benefits include exemptions from business tax and enterprise income tax (Article 14) and the right to deduct half of the increases in research cost from taxable income (Article 15). Other benefits include the right to bid on tenders for large municipally funded science and technology projects (Article 17) and to apply for subsidies to cover patent costs (Article 22).
Repealed legislation: Beijing Municipality, Encouraging the Establishment of Scientific and Technological Research and Development Organizations in Beijing Tentative Provisions, Jun 11 1999, CLP 1999 No.9 p11