Circular on Continuing Implementation of the Tax Policy for the Procurement of Equipment by Research and Development Institutions
关于继续执行研发机构采购设备税收政策的通知
Tax policy continued to encourage foreign-invested R&D institutions.
(Issued by the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs and the State Administration of Taxation on October 10 2011, effective from January 1 2011 to December 31 2015.)
(财政部、商务部、海关总署、国家税务总局于2011年10月10日发布，执行期限为2011年1月1日至2015年12月31日。)
Cai Shui [2011] No.88
财税 [2011] 88号
Finance departments (bureaux), competent commerce departments and offices of the State Administration of Taxation of the provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans, Guangdong branch and directly subordinate customs houses of the General Administration of Customs and the Finance Bureau of the Xinjiang Production and Construction Corps:
各省、自治区、直辖市、计划单列市财政厅（局）、商务主管部门、国家税务局，海关总署广东分属、各直属海关，新疆生产建设兵团财务局：
With a view to encouraging scientific research and technological development and promoting scientific and technological progress, it has been decided, following approval by the State Council, to continue to exempt articles used for scientific and technological development purposes and imported by foreign-invested research and development centres from import duties, import value-added tax and consumption tax (hereinafter collectively referred to as “Import Taxes”) and to continue to fully refund the value-added tax on equipment made in China procured by wholly domestically-owned research and development institutions and foreign-invested research and development centres. We hereby specify relevant matters as follows:
为了鼓励科学研究和技术开发，促进科技进步，经国务院批准，继续对外资研发中心进口科技开发用品免征进口关税和进口环节增值税、消费税（以下统称进口税收），继续对内资研发机构和外资研发中心采购国产设备全额退还增值税。现将有关事项明确如下：
1. The Tentative Provisions for the Exemption of Import Taxes on Articles Used for Scientific and Technological Development Purposes (Order of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation No.44) and the Decision on Amending the <Tentative Provisions for the Exemption of Import Taxes on Articles Used for Scientific and Technological Development Purposes> and the <Provisions for the Exemption of Import Taxes on Articles Used for Scientific Research and Teaching> (Order of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation No.63) shall apply to the exemption of foreign-invested research and development centres from Import Taxes. Depending on their dates of establishment, they shall respectively satisfy the following conditions:
一、外资研发中心适用《科技开发用品免征进口税收暂行规定》（财政部、海关总署、国家税务总局令第44号）和《关于修改<科技开发用品免征进口税收暂行规定>和<科学研究和教学用品免征进口税收规定>的决定》（财政部、海关总署、国家税务总局令第63号）免征进口税收。根据其设立时间，应分别满足下列条件：
(1) a foreign-invested research and development centre established on or before September 30 2009 shall satisfy all of the following conditions:
（一）对2009年9月30日及其之前设立的外资研发中心，应同时满足下列条件：
(i) criteria for research and development expenses: (1) for a foreign-invested research and development centre that has independent legal personality, a total investment of not less than US$5 million; for one that does not have independent legal personality, such as a department within a company, or a branch, total research and development outlays of not less than US$5 million; (2) annual expenditures of corporate research and development funds of not less than Rmb10 million;
1.研发费用标准：（1）对外资研发中心，作为独立法人的，其投资总额不低于500万美元；作为公司内设部门或分公司的非独立法人的，其研发总投入不低于500万美元；（2）企业研发经费年支出额不低于1000万元。
(ii) full-time research and experimental development personnel numbering not less than 90 persons; and
2.专职研究与试验发展人员不低于90人。
(iii) the total original value of the equipment purchased since its establishment being not less than Rmb10 million;
3.设立以来累计购置的设备原值不低于1000万元。
(2) a foreign-invested research and development centre established on or after October 1 2009 shall satisfy all of the following conditions:
（二）对2009年10月1日及其之后设立的外资研发中心，应同时满足下列条件：
(i) criteria for research and development expenses: if it has independent legal personality, a total investment of not less than US$8 million; and if it does not have independent legal personality, such as a department within a company, or a branch, total research and development outlays of not less than US$8 million;
1.研发费用标准：作为独立法人的，其投资总额不低于800万美元；作为公司内设部门或分公司的非独立法人的，其研发总投入不低于800万美元。
(ii) full-time research and experimental development personnel numbering not less than 150 persons; and
2.专职研究与试验发展人员不低于150人。
(iii) the total original value of the equipment purchased since its establishment being not less than Rmb20 million.
3.设立以来累计购置的设备原值不低于2000万元。
A foreign-invested research and development centre shall be required to undergo review and recognition of its qualifications by the competent commerce department, in concert with relevant departments, carried out based on the foregoing conditions. For the specific review and recognition measures, see Appendix 1.
外资研发中心须经商务主管部门会同有关部门按照上述条件进行资格审核认定。具体审核认定办法见附件1。
2. Domestically-invested research and development institutions and foreign-invested research and development centres to which the policy of fully refunding value-added tax on the procurement of equipment made in China applies include the following:
二、适用采购国产设备全额退还增值税政策的内资研发机构和外资研发中心包括
(1) scientific research and technological development institutions specified in the Tentative Provisions for the Exemption of Import Taxes on Articles Used for Scientific and Technological Development Purposes (Order of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation No.44);
（一）《科技开发用品免征进口税收暂行规定》（财政部、海关总署、国家税务总局令第44号）规定的科学研究、技术开发机构。
(2) scientific research institutions and schools specified in the Provisions for the Exemption of Import Taxes on Articles Used for Scientific Research and Teaching (Order of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation No.45); and
（二）《科学研究和教学用品免征进口税收规定》（财政部、海关总署、国家税务总局令第45号）规定的科学研究机构和学校。
(3) foreign-invested research and development centres that satisfy the conditions set forth in Article 1 hereof.
（三）符合本通知第一条规定条件的外资研发中心。
The specific measures for the administration of the tax refunds shall be formulated separately by the State Administration of Taxation together with the Ministry of Finance.
具体退税管理办法由国家税务总局会同财政部另行制定。
3. Definitions relevant to this Circular:
三、本通知的有关定义
(1) For the purposes of this Circular, the term “total investment” means the amount recorded on the approval certificate of a foreign-invested enterprise.
（一）本通知所述“投资总额”，是指外商投资企业批准证书所载明的金额。
(2) For the purposes of this Circular, the term “total research and development outlays” means the assets committed by a foreign-invested enterprise specifically for the purpose of establishing and constructing the research and development centre in question, including assets that are soon to be committed and for which a purchase contract has been executed (a list of the assets that have already been purchased and a list of the contracts for the assets that are on the verge of being procured shall be submitted).
（二）本通知所述“研发总投入”，是指外商投资企业专门为设立和建设本研发中心而投入的资产，包括即将投入并签订购置合同的资产（应提交已采购资产清单和即将采购资产的合同清单）。
(3) For the purposes of this Circular, the term “annual expenditures of corporate research and development funds” means the average of annual expenditures of corporate research and development funds in the last two financial years; if a foreign-invested research and development centre has been in existence for less than two years, such annual expenditures may be calculated using the actual expenditures of research and development funds for any continuous 12 month period since the centre's establishment; the outlays in cash and physical assets shall not be less than 60%.
（三）本通知所述“研发经费年支出额”，是指近两个会计年度研发经费年均支出额；不足两个完整会计年度的，可按外资研发中心设立以来任意连续12个月的实际研发经费支出额计算；现金与实物资产投入应不低于60%。
(4) For the purposes of this Circular, the term “full-time research and experimental development personnel” means those persons among an enterprise's science and technology activity personnel who engage full time in basic research, practical research and experimental development, and includes those persons who are directly involved in the aforementioned three types of project activities, the related full-time science and technology management personnel and the direct service personnel who provide information and documentation, materials supply and equipment for such projects. Such personnel must have executed employment contracts with a term of at least one year with the foreign-invested research and development centre or the foreign-invested enterprise to which it belongs. Their number shall be the number of persons on the day before the foreign-invested research and development centre submits its application.
（四）本通知所述“专职研究与试验发展人员”，是指企业科技活动人员中专职从事基础研究、应用研究和试验发展三类项目活动的人员，包括直接参加上述三类项目活动的人员以及相关专职科技管理人员和为项目提供资料文献、材料供应、设备的直接服务人员，上述人员须与外资研发中心或其所在外商投资企业签订1年以上劳动合同，以外资研发中心提交申请的前一日人数为准。
(5) For the purposes of this Circular, the term “equipment” means experimental equipment, apparatus and machinery that provide the necessary conditions for scientific research, teaching, and scientific and technological development. When calculating the total original value of equipment purchased, the original value of imported equipment and of procured equipment made in China shall be calculated together, including that of equipment for which a purchase contract has been executed and which will be delivered in the year in question (a list of the purchase contracts and the delivery dates shall be provided). The aforementioned equipment shall fall within the equipment listed on the List of Scientific and Technological Development, Scientific Research and Teaching Equipment (see Appendix 2) hereof. In the event of a difference of opinion as to the scope of equipment made in China encountered in the course of implementation, the issue shall be reported by the competent tax authority through the hierarchy to the State Administration of Taxation, which will render a determination after consulting with the Ministry of Finance.
（五）本通知所述“设备”，是指为科学研究、教学和科技开发提供必要条件的实验设备、装置和器械。在计算累计购置的设备原值时，应将进口设备和采购国产设备的原值一并计入，包括已签订购置合同并于当年内交货的设备（应提交购置合同清单及交货期限），上述设备应属于本通知《科技开发、科学研究和教学设备清单》所列设备（见附件2）。对执行中国产设备范围存在异议的，由主管税务机关逐级上报国家税务总局商财政部核定。
4. The period of implementation of the tax policy specified herein shall run from January 1 2011 to December 31 2015, and, more specifically, shall be implemented from the first of the month immediately succeeding the month in which a domestically-invested research and development institution or foreign-invested research and development centre secures its qualifications. The Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on Tax Policies for Equipment Procured by Research and Development Institutions (Cai Shui [2009] No.115) and the Ministry of Commerce, Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on Measures for Reviewing the Qualifications of Foreign-invested Research and Development Centres for Tax Exemptions/Refunds on Procured Equipment (Shang Zi Fa [2010] No.93) are repealed simultaneously.
四、本通知规定的税收政策执行期限为2011年1月1日至2015年12月31日，具体从内资研发机构和外资研发中心取得资格的次月1日起执行。《财政部 海关总署 国家税务总局关于研发机构采购设备税收政策的通知》（财税[2009]115号）和《商务部财政部海关总署国家税务总局关于外资研发中心采购设备免/退税资格审核办法的通知》（商资发[2010]93号）同时废止。
Foreign-invested research and development centres that are approved and established between January 1 and November 1 2011, and that import articles used for scientific and technological development purposes between the first of the month immediately succeeding the month in which they secured their qualifications and November 1 and on which they have paid taxes may apply to customs to carry out tax refund procedures in accordance with relevant customs provisions.
对于在2011年1月1日至11月1日期间批准设立的外资研发中心，从取得资格的次月1日至11月1日期间进口的科技开发用品，已缴纳税款的，可按照海关有关规定向海关申请办理退税手续。
Appendices:
附件：
1. Measures for Reviewing and Determining the Qualifications of Foreign-invested Research and Development Centres for Tax Exemptions/Refunds on Procured Equipment
1.外资研发中心采购设备免、退税资格审核办法
2. List of Scientific and Technological Development, Scientific Research and Teaching Equipment (omitted)
2.科技开发、科学研究和教学设备清单
Appendix 1
附件1：
Measures for Reviewing and Determining the Qualifications of Foreign-invested Research and Development Centres for Tax Exemptions/Refunds on Procured Equipment
外资研发中心采购设备免、退税资格审核认定办法
With a view to duly implementing the tax policy relating to the equipment procured by foreign-invested research and development centres (including research and development centres both with and without legal personality; hereinafter referred to as “R&D Centres”), we hereby formulate the following measures for reviewing and determining their qualifications:
为落实好外资研发中心（包括独立法人和非独立法人研发中心，以下简称研发中心）采购设备相关税收政策，特制定以下资格审核认定办法：
1. Review of Qualifying Conditions
一、资格条件的审核
(1) The competent commerce department of the province, autonomous region, municipality directly under the central government, city with independent development plans or the Xinjiang Production and Construction Corps together with the finance and state tax departments at the same level and the directly subordinate customs of the place where an R&D Centre is located (the Review Departments) shall formulate the review procedures and specific measures based on the circumstances of their jurisdiction. An R&D Centre shall submit its application materials to the competent commerce department of the place where it is located in accordance with the relevant requirements of this Circular.
（一）各省、自治区、直辖市、计划单列市及新疆生产建设兵团商务主管部门会同同级财政、国税部门和研发中心所在地直属海关（以下简称审核部门），根据本地情况，制定审核流程和具体办法。研发中心应按本通知有关要求向其所在地商务主管部门提交申请材料。
(2) The competent commerce department, in the lead, shall hold a joint meeting with the Review Departments whereat they shall review the application materials submitted by R&D Centres and, based on the conditions set forth in Article 1 of the main text of this Circular and the requirements of these Measures determine the list of R&D Centres that satisfy the qualifying conditions for tax exemptions/refunds.
（二）商务主管部门牵头召开审核部门联席会议，对研发中心上报的申请材料进行审核，按照本通知正文第一条所列条件和本审核认定办法要求，确定符合免、退税资格条件的研发中心名单。
(3) Following their review, the Review Departments shall jointly publish a list of the R&D Centres that satisfy the qualifying conditions for tax exemptions/refunds in the form of an announcement, with copies sent to the (Department of Foreign Investment Administration of the) Ministry of Commerce, the (Department of Taxation and the Department of Customs Duties of the) Ministry of Finance, the (Customs Duties Collection and Control Department of the) General Administration of Customs and the (Department of Goods and Labour Tax of the) State Administration of Taxation for record filing. To those that do not satisfy relevant provisions, the competent commerce department shall issue a written review opinion based on the decision of the joint meeting and give the reason. The aforementioned announcement or review opinion shall be issued within 45 working days from the date on which the Review Departments accepted the application.
（三）经审核，对符合免、退税资格条件的研发中心，由审核部门以公告形式联合发布，并将名单抄送商务部（外资司）、财政部（税政司、关税司）、海关总署（关税征管司）、国家税务总局（货物和劳务税司）备案。对不符合有关规定的，由商务主管部门根据联席会议的决定出具书面审核意见，并说明理由。上述公告或审核意见应在审核部门受理申请之日起45个工作日之内做出。
(4) Every two years, the Review Departments shall conduct a re-examination of the qualifications of those R&D Centres that have secured qualifications for tax exemptions/refunds. They shall cancel the qualifications to enjoy the tax breaks of those R&D Centres that no longer satisfy the conditions.
（四）审核部门每两年对已获得免、退税资格的研发中心进行资格复审。对于不再符合条件的研发中心取消其享受免、退税优惠政策的资格。
2. Materials that Need to be Submitted
二、需报送的材料
When an R&D Centre applies for qualifications for tax exemptions/refunds on procured equipment, it shall submit the following materials:
研发中心申请采购设备免、退税资格，应提交以下材料：
(1) a written application for the qualifications for tax exemptions/refunds on equipment procured by an R&D Centre and a review form;
（一）研发中心采购设备免、退税资格申请书和审核表；
(2) if it has independent legal personality, photocopies of its approval certificate of a foreign-invested enterprise and business licence; if it does not have independent legal personality, photocopies of the approval certificate of a foreign-invested enterprise and business licence of the foreign-invested enterprise to which it belongs and the document confirming its being an R&D Centre (the official reply from, or the Confirmation of a Foreign-invested Project the Development of Which is Encouraged by the State issued by, the competent commerce department);
（二）研发中心为独立法人的，应提交外商投资企业批准证书及营业执照复印件；研发中心为非独立法人的，应提交其所在外商投资企业的外商投资企业批准证书、营业执照的复印件以及研发中心的确认文件（商务主管部门的批复或出具的《国家鼓励发展的外资项目确认书》）；
(3) a capital verification report and a photocopy of its audit report for the preceding year;
（三）验资报告及上一年度审计报告复印件；
(4) a detailed breakdown of its research and development expenses and expenditures, a detailed breakdown of its equipment purchase expenditures and a list of the equipment purchased, and the materials that it is required to submit as specified in the Circular;
（四）研发费用支出明细、设备购置支出明细和清单以及通知规定应提交的材料；
(5) a list of its full-time research and experimental development personnel (including their names, positions, employment contract terms and contact information); and
（五）专职研究与试验发展人员名册（包括姓名、工作岗位、劳动合同期限、联系方式）。
(6) other materials that the Review Departments require be submitted.
（六）审核部门要求提交的其他材料。
3. Administration of the Relevant Work
三、相关工作的管理
(1) Once the announcement has been published, an R&D Centre included on the list in the announcement may, in accordance with provisions, directly carry out the application procedures for the exemption of taxes on articles imported for scientific and technological development purposes with the local directly subordinate customs and the procedures for tax refunds on procured equipment made in China with the local state tax department.
（一）在公告发布后，列入公告名单的研发中心，可按有关规定直接向其所在地直属海关申请办理有关科技开发用品的进口免税手续，向其所在地国税部门申请办理采购国产设备退税手续。
(2) When jointly conducting a review to determine whether an R&D Centre has the qualifications, the Review Departments may go to the R&D Centre to review relevant information, understand the circumstances and ascertain the truthfulness of the application materials submitted by the R&D Centre. Additionally, they shall be sure to strengthen policy guidance of and service to the R&D Centre so as to enhance work efficiency.
（二）审核部门在共同审核认定研发中心资格的过程中，可到研发中心查阅有关资料，了解情况，核实其报送的申请材料的真实性。同时应注意加强对研发中心的政策指导和服务，提高工作效率。
(3) The competent provincial-level commerce departments shall, in a timely manner, input the relevant information appearing on the Form for the Review of the Qualifications of a Foreign-invested Research and Development Centre for Tax Exemptions/Refunds on Procured Equipment into the R&D Centre section of the management system for foreign investment examination and approval, and file the same electronically with the Ministry of Commerce for record filing.
（三）省级商务主管部门应将《外资研发中心采购设备免、退税资格审核表》有关信息及时录入外商投资审批管理系统研发中心选项，并向商务部进行电子备案。
(4) Customs and state tax departments shall strengthen their oversight of equipment for which tax exemptions/refunds have been granted. If an R&D Centre violates provisions by transferring, selling, diverting for other purposes or otherwise disposing of, without authorisation, equipment on which it has enjoyed tax breaks, it shall be penalised in accordance with relevant provisions and shall not be eligible for tax breaks for one year from the date on which the violation came to light. If it is criminally prosecuted in accordance with the law, it shall not be eligible for tax breaks for three years from the date on which the violation came to light.
（四）海关和国税部门应加强对免、退税设备的监管。对于研发中心违反规定，将享受税收优惠政策的设备擅自转让、销售、移作他用或者进行其他处置的，按照有关规定予以处罚，自违法行为发现之日起1年内不得享受免、退税优惠政策；被依法追究刑事责任的，自违法行为发现之日起3年内不得享受免、退税优惠政策。
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