Whether high tech enterprises can enjoy preferential tax rates during the review stage

Announcement on Issues Concerning the Prepayment of Enterprise Income Tax during the Qualification Review of High-tech Enterprises, Announcement No. 4 of 2011 of the State Administration of Taxation: According to the Enterprise Income Tax Law of the People's Republic of China, the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China, the Notice of the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on Printing and Distributing the Administrative Measures for the Identification of High-tech Enterprises (Guo Ke Fa Huo [2008] No. 172), and the Notice of the State Administration of Taxation on Issues Concerning the Implementation of Income Tax Incentives for High-tech Enterprises (Guo Shui Han [2009] No. 203), the relevant provisions of the enterprise income tax prepayment before the announcement of the qualification review results of high-tech enterprises are hereby announced as follows: High-tech enterprises shall submit an application for review within three months before the expiration of the qualification period, and before passing the review, during the validity period of their high-tech enterprise qualifications, their enterprise income tax for the current year shall be temporarily prepaid at a rate of 15%.

Announcement on Issues Concerning the Prepayment of Enterprise Income Tax during the Qualification Review of High-tech Enterprises, Announcement No. 4 of 2011 of the State Administration of Taxation: According to the Enterprise Income Tax Law of the People's Republic of China, the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China, the Notice of the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on Printing and Distributing the Administrative Measures for the Identification of High-tech Enterprises (Guo Ke Fa Huo [2008] No. 172), and the Notice of the State Administration of Taxation on Issues Concerning the Implementation of Income Tax Incentives for High-tech Enterprises (Guo Shui Han [2009] No. 203), the relevant provisions of the enterprise income tax prepayment before the announcement of the qualification review results of high-tech enterprises are hereby announced as follows: High-tech enterprises shall submit an application for review within three months before the expiration of their qualifications, and before passing the review, they shall be qualified as high-tech enterprises.

High-tech enterprises recognized in accordance with the Administrative Measures for the Identification of High-tech Enterprises and the High-tech Fields Supported by the State jointly promulgated by the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation in April 2008 may be recognized in accordance with the new Enterprise Income Tax Law and its Implementation Regulations, the Law of the People's Republic of China on the Administration of Tax Collection (hereinafter referred to as the "Tax Collection and Administration Law") and the Detailed Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection (hereinafter referred to as the "Implementation Rules") which came into effect on January 1, 2008 and other relevant provisions to apply for preferential tax policies.

The new Enterprise Income Tax Law, which came into effect on January 1, 2008, stipulates that the tax rate of domestic and foreign-funded enterprises shall be unified at 25%, and the state shall give preferential treatment to enterprises and projects that focus on supporting and encouraging development, and the high-tech enterprises that need to be supported by the state shall be reduced to 15% of the enterprise income tax.

High-tech enterprises enjoying tax incentives must meet the following conditions at the same time:

1. In the past 3 years, through independent research and development, transfer, donation, mergers and acquisitions, etc., or through exclusive licensing for more than 5 years, it has independent intellectual property rights for the core technology of its main products (services).

2. The products (services) belong to the scope specified in the "High-tech Fields Supported by the State", that is, they belong to the scope of information technology repertoire, biological and new medical technology, aerospace technology, high-tech service industry, new energy and energy-saving technology, resource and environmental technology, and high-tech transformation of traditional industries.

3. Scientific and technological personnel with college degree or above account for more than 30% of the total number of employees of the enterprise in the current year, of which R&D personnel account for more than 10% of the total number of employees in the current year.

4. The enterprise has continuously carried out research and development activities in order to obtain new knowledge of science and technology (excluding humanities and social sciences), creatively use new knowledge of science and technology, or substantially improve technology and products (services), and the proportion of total research and development expenses in the total sales revenue in the past three fiscal years meets the following requirements: enterprises with sales revenue of less than 50 million yuan in the last one year shall not be less than 6%; Enterprises with sales revenue of 50 million yuan to 200 million yuan in the last one year shall not be less than 4%; Enterprises with sales revenue of more than 2000000 yuan in the last 1 year shall not be less than 3%. Among them, the total R&D expenses incurred by the enterprise in China shall not be less than 60% of the total R&D expenses.

If the enterprise has been incorporated for less than 3 years, it shall be calculated according to the actual number of years of operation.

5. The revenue of high-tech products (services) accounts for more than 60% of the total revenue of the enterprise in the current year.

6. The management level of enterprise research and development organization, the ability to transform scientific and technological achievements, the number of independent intellectual property rights, the growth of sales and total assets and other indicators meet the requirements of the "Guidelines for the Identification and Management of High-tech Enterprises".

The identification of high-tech enterprises has a certain relationship with tax incentives. After being identified as a high-tech enterprise, the enterprise can enjoy a series of preferential tax policies provided by the state and local governments. The specific content of tax incentives may vary depending on the region and policy, and generally includes the following aspects:

2) Individual income tax incentives: R&D personnel of high-tech enterprises can enjoy individual income tax incentives, such as R&D allowances.

3) Value-added tax incentives: High-tech enterprises can enjoy VAT reduction, exemption, tax refund and other tax policies according to relevant policies. When enjoying preferential tax policies, enterprises should declare and reimburse in accordance with relevant regulations, and keep relevant vouchers and supporting materials.

At the same time, enterprises should pay attention to the changes in relevant policies and requirements in a timely manner to ensure the compliance of tax incentives.

High-tech enterprises can obtain a number of preferential tax policies. The specific content and extent of tax incentives may vary by region and policy, but here are some common tax incentives:

1) Preferential corporate income tax: The R&D expenses of high-tech enterprises can be clearly deducted and pre-tax preferential treatment can be enjoyed.

2) VAT incentives: VAT on high-tech products and technical services can be subject to lower tax rates or exemptions.

3) Preferential tariffs: Imported high-tech products or equipment can enjoy tariff reduction or exemption.

4) Additional preferential treatment of urban maintenance and construction tax and education fee: A certain proportion of the tax payable of high-tech enterprises can be reduced or reduced by half. Please note that the specific preferential tax policies are subject to the regulations issued by the local tax authorities, and enterprises should consult the relevant authorities to confirm the specific policy details before enjoying the tax incentives.

1. The recognized national high-tech enterprises shall be subject to enterprise income tax at a reduced rate of 15%.

2. For high-tech enterprises in the Special Economic Zone and Shanghai Pudong New Area that have completed registration after January 1, 2008 (inclusive), the income obtained in the Special Economic Zone and Shanghai Pudong New Area shall be exempted from enterprise income tax from the first year to the second year from the tax year in which the first production and operation income is taken, and the enterprise income tax shall be reduced by half at the statutory rate of 25% from the third to the fifth year.

3. If the enterprise develops new technologies, new products, and new processes and does not form intangible assets and is included in the current profit or loss, it shall be deducted according to 50% of the research and development expenses on the basis of deduction according to the regulations; If an intangible asset is formed, it shall be amortized at 150% of the cost of the intangible asset.

4. For enterprises (including foreign-invested enterprises and foreign enterprises) to import the equipment required for their own use for the production of the products of the "National High-tech Product Catalogue", as well as the technology and accessories imported with the equipment in accordance with the contract, and the preparation of the goods listed in the "Catalogue of Imported Commodities Not Eligible for Tax Exemption for Domestic Investment Projects" stipulated in the State Development Document No. 37 of 1997, the customs duties are exempted.

5. Enterprises (including foreign-invested enterprises and foreign enterprises) that introduce advanced technologies listed in the "National High-tech Product Catalogue" are exempt from customs duties for software fees paid abroad in accordance with the provisions of the contract.

6. The expenses incurred in the research and development of new products, new technologies and new processes of enterprises have increased year by year, and the growth rate of enterprises with an increase of more than 10 (including 10) can deduct the taxable income according to 50 of the actual amount.

7. High-tech enterprises engaged in software development, integrated circuit manufacturing and other businesses, interconnection, and venture capital enterprises engaged in high-tech venture capital, within 5 tax years from the date of registration, can be deducted according to the facts after being reviewed by the competent tax authorities.

8. High-tech enterprises in the approved high-tech industrial development zone shall be subject to enterprise income tax at a reduced rate of 15; Newly established high-tech enterprises shall be exempted from enterprise income tax for 2 years from the year of operation.

1. Conditions for the recognition of high-tech enterprises.

Conditions for the recognition of high-tech enterprises:

1.In the past 3 years, the brand registered in China has independent intellectual property rights for the core technology of the main enterprise products through independent research and development, donation, mergers and acquisitions, etc., or more than 5 years of exclusive licensing;

2.The company's products belong to the standards listed in the "High-tech Fields Supported by the State";

3.R&D personnel account for 10% of the brand's entire staff this year.

The company is an enterprise legal person, has an independent legal person to verify the property, and enjoys the property rights of the legal person. The company is liable for the debts of the company with all its property.

The shareholders of a limited liability company are liable to the company to the extent of their subscribed capital contributions; The shareholders of the shares are liable to the company to the extent of the shares they subscribe.

2. What are the tax incentives for high-tech enterprises?

The preferential tax treatment for high-tech enterprises refers to the measures to reduce or exempt the enterprise income tax of high-tech enterprises through the provisions of the state. According to the relevant regulations, the science and technology service industry is an industry that is supported and encouraged by China, and can enjoy preferential corporate income tax in accordance with the law. The Enterprise Income Tax Law of the People's Republic of China stipulates that enterprises identified as high-tech enterprises can be levied enterprise income tax at a rate of 15% in accordance with the law.

Legal basis: Article 28 of the Enterprise Income Tax Law of the People's Republic of China stipulates that high-tech enterprises that need to be supported by the state shall be subject to enterprise income tax at a reduced rate of 15%.

3. What are the financing means of national high-tech enterprises?

1.Bank term loans.

Banks are the main source of financing for concessionaires. According to the nature of funds, it can be divided into three categories: working capital loans, fixed asset loans and special loans.

2.Financial leases.

Financial leasing, also known as financial leasing, is a new mode of operation of product marketing and asset management, as well as a way of asset-based financing.

The failure of an enterprise to enjoy the preferential tax rate for high-tech enterprises may be due to the fact that the enterprise does not meet the conditions for enjoying the preferential policy, or the person who has failed to apply for and obtain the preferential tax rate in accordance with the prescribed procedures.

The preferential tax rate for high-tech enterprises is a preferential tax policy implemented by China to encourage and support the development of high-tech enterprises, mainly including preferential treatment in terms of enterprise income tax, individual income tax and land value-added tax. There are certain requirements for the enjoyment conditions and application procedures of these preferential policies, such as the enterprise must be a high-tech enterprise, must meet the recognition standards of the national and local tax authorities, and apply and approve in accordance with the prescribed procedures.

If an enterprise fails to enjoy the preferential tax rate for high-tech enterprises, it can be explained from the following aspects:

1.If the enterprise does not meet the conditions for enjoying the preferential policy: if the enterprise does not meet the criteria for the recognition of high-tech enterprises, it cannot enjoy the tax incentives of the policy. Therefore, it can be interpreted as the failure of the enterprise to meet the requirements and standards for enjoying the policy.

2.Enterprises fail to apply for and obtain the policy in accordance with the prescribed procedures: If the enterprise does not apply for and obtain the preferential tax rate for high-tech enterprises in accordance with the prescribed procedures, it cannot enjoy the tax incentives of the policy.

Therefore, the sale of sails can be interpreted as the failure of the enterprise to obtain the policy in accordance with the prescribed procedures.

In short, the fact that an enterprise does not enjoy the preferential tax rate for high-tech enterprises may be because the enterprise does not meet the conditions for enjoying the policy, or does not apply for and obtain the policy in accordance with the prescribed procedures. Enterprises can explain and explain according to the specific situation.

Legal Analysis: Reduced taxation and corporate income tax at a rate of 15%.

Legal basis: Article 28 of the Law of the People's Republic of China on Enterprise Income Tax of the People's Republic of China Qualified small and low-profit enterprises shall be subject to enterprise income tax at a reduced rate of 20. Tongyuan high-tech enterprises that need to be supported by the state will be subject to enterprise income tax at a reduced rate of 15.