Shanghai Municipality, Several Provisions on Promoting the Development of the Alternative Energy Industry in Shanghai

Issued: December 7 2009
Effective: as of date of issuance

Applicability: The Provisions apply to enterprises and organisations that have completed industry and commerce registration and tax registration in the Municipality, and that engage in the research and development, production and use of nuclear power, wind power, solar power generation, integrated gasification combined cycle (IGCC) and smart grids (Article 1).

Main contents: Enterprises that are recognised as state high- and new- technology enterprises shall pay enterprise income tax at a reduced rate of 15%. From January 1 2009 to December 31 2013, qualified service enterprises with advanced technology shall also be entitled to a reduced tax rate of 15%. Where the research and development expenses incurred by an alternative energy enterprise in developing a new technology, new product, or new process have given rise to intangible assets, such expenses may be amortised at 150% of the intangible asset costs. Business tax shall be exempted from the income of alternative energy enterprises and individuals obtained from technology transfer, technology development services and the technology consultancy and technology services related thereto. In the case of technology transfer of qualified alternative energy products, enterprise income tax shall be exempted for the portion of income not exceeding Rmb5 million within one tax year, and enterprise income tax shall be reduced by half for the portion exceeding Rmb5 million (Article 3).