Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation, Measures for the Administration of the Recognition of Hi-tech Enterprises

Issued: April 14 2008
Effective: January 1 2008

Applicability: For the purposes of these Measures, the term “hi-tech enterprise” means a tax-resident enterprise registered in China (excluding Hong Kong, Macao and Taiwan) for at least one year that falls within the Hi-tech Sectors Supported by the State on a Priority Basis (see the Appendix), and conducts research and development and applies technological achievements practically on an ongoing basis, with such achievements forming the core of the enterprise's self-controlled intellectual property rights, and that uses the same as the basis for carrying out its business activities (Article 2).

Main Contents: The Measures set forth the criteria for recognition as a hi-tech enterprise. For example, it has to be an enterprise registered in China (excluding Hong Kong, Macao and Taiwan) and owning the self-controlled intellectual property rights in the core technology of its principal products (or services) through its own development, transfer, acceptance of the donation, or mergers or acquisitions during the last three years or through an exclusive licence therefor of at least five years (Article 10).