Ministry of Finance, Ministry of Commerce, General Administration of Customs and State Administration of Taxation, Circular on Continuing Implementation of the Tax Policy for the Procurement of Equipment by Research and Development Institutions

财政部、商务部、海关总署、国家税务总局关于继续执行研发机构采购设备税收政策的通知

December 06, 2011 | BY

clpstaff &clp articles &

Tax policy continued to encourage R&D institutions.

Clp Reference: 3220/11.10.10 Promulgated: 2011-10-10 Effective: 2011-01-01

Issued: October 10 2011
Effective: from January 1 2011 to December 31 2015

Main contents: The Circular states that foreign-invested research and development (R&D) centres that import articles used for scientific and technological development purposes shall continue to be entitled to exemption of import duties, import value-added tax and consumption tax, and wholly domestically-owned R&D institutions and foreign-invested R&D centres that procure equipment made in China shall continue to be entitled to full refund of value-added tax. To enjoy the aforementioned tax exemption and refund, foreign-invested R&D centres shall fulfil the following criteria:

(i) where it is established on or before September 30 2009, it shall have a total investment of not less than US$5 million, annual expenditures of corporate research and development funds of not less than Rmb10 million, and full-time research and experimental development personnel numbering not less than 90 persons; and the total original value of the equipment purchased since its establishment shall be at least Rmb10 million; or

(ii) where it is established on or after October 1 2009, it shall have a total investment of not less than US$8 million and full-time research and experimental development personnel numbering not less than 150 persons; and the total original value of the equipment purchased since its establishment shall be at least Rmb20 million (Article 1).

Related legislation: Tentative Provisions for the Exemption of Import Taxes on Articles Used for Scientific and Technological Development Purposes; and Provisions for the Exemption of Import Taxes on Articles Used for Scientific Research and Teaching

Repealed legislation: Circular on Tax Policies for Equipment Procured by Research and Development Institutions, 2009; and Circular on Measures for Reviewing the Qualifications of Foreign-invested Research and Development Centres for Tax Exemptions/Refunds on Procured Equipment, Mar 22 2010

clp reference:3220/11.10.10promulgated:2011-10-10effective:2011-01-01

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