BENGBU MUNICIPAL BUREAU OF LOCAL TAX
THE OPINIONS ON THE SERVICE OF INDEPENDENT INNOVATION COMPREHENSIVE ASSORTED REFORM IN BENGBU
1.SUPPORT THE UPGRADE OF NEW INNOVATIVE INDUSTRIES
1)As for the high tech enterprises with core intellectual property and ratified by the related organs, the enterprise income tax will be reduced by 15% tax rate from the total.
2)As for the tax value repaid back to the enterprises engaged in software manufacture and IC design in line with the policy of the VAT quick levying and quick repayment, used again by the said enterprises into software development and manufacture enlargement, the corporation’s income tax will not be levied.
3)As for the new software and IC design manufactures after ratified, the enterprise income tax will be exempted from 1st and 2nd year starting from the profitable year, 50% of the said tax will be exempted from 3rd and 4th years. As for the major software and IC design manufactures listed in state plan, the enterprise income tax will be reduced at 10% if the tax free favorable policy is not given to those enterprises in the current year.
4)As for the employees training costs of the software and IC design manufactures, it will not be limited by the said proportion and will be deducted from the actual value when the tax to be paid is calculated.
5)The depreciation period of the processing equipment of IC manufactures can be shortened, up to minimum 3 years if ratified by charging tax authorities.
6)As for the IC enterprises with their investing value more than 8 billion Yuan or the IC line width less than 0.25um, the enterprise income tax can be reduced by15%, in which the enterprise income tax will be exempted entirely from 1st~5th year starting from the profitable year, that will be exempted by 50% from 6th ~10th year if the enterprise business period is running for more than 15 years.
7)As for the manufacture of producing IC line width less than 0.8um (incl. 0.8um), the enterprise income tax will be exempted from 1st ~2nd year starting from the profitable year, that will be exempted by 50% from 3rd ~5th year after ratified.
8)As for the profit after enterprise income tax of the IC and sealing producers invested directly into its added capital, or setup of other IC and sealing enterprises as investing capital with its business period no less than 5 years from Jan.1 2008 to the end of 2010, the paid enterprise income tax for the re-invested portion will be returned back by 40%.
9)As for the software purchased by the enterprises or public institutions, which is in compliance with the identification conditions for fixed assets or intangible assets, the said software can be calculated in terms of fixed or intangible assets and the depreciation or amortization year limit can be appropriately shortened, to max two years after ratified by the charging taxation authorities.
2.SUPPORT MAJOR ENTERPRISES TO ENHANCE THE INNOVATIVE POWER
10) As for the r/d costs related to the enterprise’s development of new tech, new products and new processes, which have not been calculated as intangible assets into current profit and loss, once more its 50% actual value occurred will be deducted before enterprise income tax on the basis of afore 100% deduction done according to the regulations; it will be amortized at 150% in term of the cost of intangible assets if the intangible assets already formed.
11)As for the accelerative depreciation of enterprise fixed assets be necessary due to enterprise technical progress etc, the methods can be adopted as shortening the depreciation period or accelerating the depreciation, if approved by the charging taxation authority.
12)As for the enterprise employees training costs arose, the costs can be deducted before tax if it is no more than 2.5% of the total employees’ salary value; the surplus portion can be transferred and deducted in the following levying year.
13)As for the software was separately sold or transferred jointly with the postal and telecommunication and computers etc by the foreign enterprise to the enterprise inside China, its software use fee paid will be exempted the foreign enterprise business tax, regarding to the mentioned software imported by the domestic enterprise, whether or not the tariff and import link VAT have been paid.
14)As for the r/d costs arose from the individuals or individual private businessmen (same as below) who financial supported the non-linked research institutions and universities to develop new products, new tech and new processes, such costs can be deducted entirely from the current year tax to be paid.
15)As for the activities of joint profit distribution and joint sustaining the investment venture with the invested party in joining shares with intangible or movable properties, the business tax will not be levied.
16)The equity transfer is not levied the business tax.
17)As for the activities arose form entire transfers of assets, creditor's rights, debts and labors of enterprises, the business tax will not be levied.
3. ENCOURAGE ENTERPRISES TO CREATE PROPRIETARY BRAND
18)As for the advertising costs and business propaganda expenditures from the enterprises, the cost portion not exceeding 15% current year sales (business) revenue (before the levy) can be deducted from the enterprise income tax; the exceeding portion can be transferred and deducted in following levy years.
4. ENCOURAGE ESTABLISHMENT OF VENTURE INVESTMENT
19) As for the enterprise investing corporations investing the unlisted small-mid sized high tech enterprises in equity mode for more than two years, the said enterprise’s tax value to be paid can be deducted with the 70% investing value in the current year of the equity right holding being for two years.
5. SUPPORT INFRASTRUCTURE CONSTRUCTION AND BASIC INDUSTRY DEVELOPMENT
20)As for the investment and business gains from the enterprises engaged in the commitments of the infrastructure projects of port, airport, railway, highway, urban public traffic, power supply and water resources, and the projects of water saving, which are all in compliance with the related regulations, the said gains will be exempted entirely the enterprise income tax from 1st ~3rd year, that will be excepted at 50% enterprise income tax from 4th ~6th year starting from the levy year when the first productive business income is gained from the project.
6.PROMOTE INDEPENDENT INNOVATIVE S&T RESULTS TRANSFER
21)As for the qualified state university s/t parks and s/t enterprise incubators (also called high tech innovative enterprising centers), the real estate tax and city/township land use tax will be exempted regarding to the premises or land which are self used or offered to the incubator enterprise in the way of free of charge or hire from Jan.1 2008 ~ Dec. 31 2010; as for the income arose from the leasing the site, houses, and offering services to the incubator enterprises, the business tax will be exempted.
22)In one levy year, the portion of not exceeding 5 million Yuan regarding to individual enterprise tech transfer gain will be exempted the enterprise income tax; the portion exceeding 5 million Yuan will be exempted the enterprise income tax by 50%.
23)The income gained from organs and individuals engaged in tech transfer, tech development and the tech consultation and tech services related, the business tax regarding to the said income will be exempted.
24)As for the premises and land self used by the non-profitable scientific research institutions, the real estate tax and city/township land use tax will be exempted.
25)As for the organizations and individuals (incl. foreign invested enterprises, r/d centers set up by foreign investors, foreign enterprises and foreign individuals) engaged in tech transfer, tech development and those related to the tech consultation and tech services, their income concerned will be exempted the business tax.
26)As for the non-profitable research institutions engaged in tech transfer, tech development and those related to the tech consultation and tech services, their income concerned will be exempted the business tax in line with the regulations.
27)As for the promises and land used by universities’ self activities engaged in teaching and r/d, the real estate tax and land use tax will be exempted.
28)As for the state university s/t parks and s/t enterprise incubators (also called high tech enterprise service centers), which is qualified as non-profitable research institutions, the enterprise income tax preferential policy will be enjoyed since Jan. 1 2008 in compliance with the related tax laws and regulations.
29)As for the 242 research organizations of 10 state bureaus of original State Economic and Trade Ministry and 134 research institutions of 11 departments or units of Construction Ministry approved by State Council having been transferred into enterprise type research institutions or into the research institutions of enterprises, the self used land and promises for the r/d will be exempted the city/township land use tax, real estate tax and enterprise income tax within 5 years from the day when the system transfer is registered, the mentioned tax policies will be renewed for another two years after expire.
The local system-transfer research institutions determined and published by Anhui province can also refer to and enjoy the mentioned policies as well.
7.ENCOURAGE THE INTRODUCTION OF NEW INNOVATIVE TALENTS
30)As for the tech innovative reward awarded by provincial government, ministries of State Council, foreign organizations and international organizations to the individuals, its personal income tax will be exempted.
31)As for the personal reward awarded by the research institutions or universities in the equity forms of shares or funding proportion with their occupational s/t results transfer, the personal income tax will not be levied temporarily.
32)As for the stock option the employee gets from the enterprise which carries out the stock option plan, the personal income tax will be exempted.
33)As for the brokerage fee paid by the person in the process of tech transfer or labor service supply, it can be deducted from his income if the valid and legal evidences can be presented.
34)As for the r/d costs arose from the individuals’ r/d of new products, new techs and new processes, or the purchase fees arose from buying the single test instrument or experiment device worth less than 50,000Yuan in the r/d of new products, new tech, the said cost will be deducted from the personal income tax before tax.
35)As for the enhancing the development of adolescent s/t education, encouraging the school and guidance institutions to organize the students to join in and apply for the activities of “tomorrow’s little scientists”, the enterprise income tax for the reward thus awarded to the schools and guidance institutions from the mentioned activity will be exempted; as for the individual students who take part in the said activities of “tomorrow’s little scientists”, the personal income tax for the reward thus awarded to the students from the mentioned activity will be exempted.
36)As for the rewards of science, tech, culture, hygiene, sports and environment etc awarded by provincial government, ministries of state council, the unit above army level and foreign organizations, international organizations, the personal income tax of the said rewards will be exempted.
8.SUPPORT THE DEVELOPMENTS OF CYCLE ECONOMIC AND ENVIRONMENT FRIENDLY INDUSTRY
37)As for the gains from the enterprises engaged in qualified environment protection, energy/water saving projects (incl. public sewage treatment, pubic trash treatment, marsh gas comprehensive development/utilization, tech innovation in emission reduction, seawater desalination etc), the enterprise income tax for those gains arose from the mentioned commitments will be exempted totally in 1st ~3rd year, the enterprise income tax of that will be exempted by 50% in 4th~6th year starting from the 1st levy year when the first productive business revenue is achieved.
As for the tax reduction or exemption preferential policy of environment protection and energy/water saving projects enjoyed by the enterprise in compliance with the regulations, the said tax reduction or exemption preferential policy can be still given to the transferee in the remained period from the day of transferring if the transfer is done in the tax reduction or exemption period.
38)As for the special equipment of environment protection, energy/water saving and safe production purchased and used by the enterprises, which are listed in “Preferential Income Tax List of the Enterprises Engaged in Special Environment Protection Equipment”, “Preferential Income Tax List Of The Enterprises Engaged In Energy/Water Saving Equipment” and “Preferential Income Tax List Of The Enterprises Engaged In Special Safe Production Equipment”, 10% value for the said equipment investment of the enterprise can be deducted from tax to be paid in current year; that can be still transferred and exempted in the following 5 levying years if it is not sufficient for the deduction in that current year.
39)As for the major materials used by the enterprises, which is listed in “Preferential Income Tax List of the Enterprises Engaged in Resources Comprehensive Utilization” are processed to make the products which are not limited and prohibited, and in compliance with the related standards of the state and industries, the income tax of the mentioned products sales will be calculated by 90% into the total income.