Resource Center
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What Trial Policies Are Taking Place To Encourage Development Of Advanced Technology Service Enterprises In Suzhou Industrial Park?
08/03/07
The Ministry of Finance (“MOF”), the State Administration of Taxation (“SAT”), the Ministry of Commerce (“MOC”) and the Ministry of Science and Technology recently released a notice outlining trial policies to encourage the development of advanced technology service enterprises in the Suzhou Industrial Park (“SIP”).
The notice broadens the scope of eligible High/New-Tech Enterprises in the SIP to include advanced technology service enterprises that meet relevant criteria. As from 1 July 2006, domestic or foreign-invested advanced technology service enterprises that are granted High/New-Tech Enterprise status are subject to a reduced enterprise income tax rate of 15%. Reasonable salary expenses that are actually incurred may be deducted in calculating enterprise income tax liability. Qualifying enterprises also enjoy other non-tax-related preferential policies.
The scope of advanced technology service enterprises under the trial policies includes software research and development (“R&D”) and services, product technology R&D and industrial design services, information technology R&D services, information technology outsourcing services and technical process outsourcing services. The notice also defines the recognition criteria, administrative procedures and scope of recognition.
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