Innovation is the leading force in driving development and is crucial for advancing high-quality development and constructing a modern economic system. The Party Central Committee, with Comrade Xi Jinping at its core, places great emphasis on technological innovation, orchestrating top-level designs and systematic deployments for technological innovation from the perspective of the Party and national development strategy. It has put forth significant propositions concerning technological reform and development, providing fundamental guidance and setting the direction for tax work related to technological innovation in the new era. The Ministry of Finance, the Ministry of Science and Technology, the General Administration of Customs, and the State Taxation Administration resolutely implement the important instructions of General Secretary Xi Jinping and the decisions and deployments of the Party Central Committee. They consistently prioritize support for technological innovation, have introduced a series of targeted tax and fee policy measures, and have gradually developed a comprehensive set of tax incentive policies covering the entire innovation chain, industry chain, funding chain, and talent chain. These policies adequately meet the new circumstances and requirements of China's technological innovation development in the new era, significantly stimulating enterprises' innovative vitality, supporting high-level technological self-reliance and self-improvement, and playing a crucial role in promoting economic high-quality development.

To make these tax and fee incentive policies more widely known to all sectors of society, more conveniently queried and understood, and more accurately applied and enjoyed, the Ministry of Finance, the Ministry of Science and Technology, the General Administration of Customs, and the State Taxation Administration have jointly compiled the "Guidelines on China's Key Tax Incentive Policies Supporting Technological Innovation." These guidelines categorize policies according to segments of technological innovation activities—covering entrepreneurship investment, research and experimental development, results transformation, key industry development, and entire industry chains—and detail each incentive’s policy type, related taxes, incentive content, eligible entities, application conditions, timing of application, method of application, required documentation, and policy basis. Furthermore, for the convenience of taxpayers in applying these guidelines, this document includes a matrix of relevant tax incentive policies, aiming to provide a menu-style and one-stop service to ensure taxpayers fully benefit from these incentives.

Table of Contents of "Guidelines on China's Key Tax Incentive Policies Supporting Technological Innovation"

Part One: Entrepreneurship Investment

I. Enterprise Income Tax

Corporate entrepreneurial investment enterprises investing in startup technology enterprises can deduct 70% of their investment amount from their taxable income

Corporate entrepreneurial investment enterprises investing in small and medium-sized high-tech enterprises can deduct 70% of their investment amount from their taxable income

Legal entity partners in partnership entrepreneurial investment enterprises investing in startup technology enterprises can deduct 70% of their investment amount from their taxable income

Legal entity partners in partnership entrepreneurial investment enterprises investing in small and medium-sized high-tech enterprises can deduct 70% of their investment amount from their taxable income.

Pilot policies for enterprise income tax incentives for corporate-type entrepreneurial investment enterprises in specific regions

II. Individual Income Tax

Individual partners in limited partnership entrepreneurial investment enterprises investing in startup technology enterprises can deduct 70% of their investment amount from their taxable income

Angel investors investing in startup technology enterprises can deduct 70% of their investment amount from their taxable income

Individual partners in partnership entrepreneurial investment enterprises may opt to calculate tax incentives based on a single investment fund

Part Two: Attracting and Cultivating Talent Incentives

I. Enterprise Income Tax

Increase the deductible ratio of enterprise employee education expenses from pre-tax income from 2.5% to 8%

II. Individual Income Tax

Tax incentives for high-end and in-demand talent in the Guangdong-Hong Kong-Macao Greater Bay Area

Tax incentives for high-end and in-demand talent in Guangdong-Macao In-Depth Cooperation Zone in Hengqin

Tax incentives for high-end and in-demand talent in the Hainan Free Trade Port

Tax incentives for individuals in Guangzhou Nansha

Tax incentives for Macao residents in Guangdong-Macao In-Depth Cooperation Zone in Hengqin

Tax incentives for individuals in Fujian Pingtan

Third Part: Research and Experimental Development

I. Value-Added Tax

Value-added tax policy for R&D institutions purchasing equipment

II. Enterprise Income Tax

Enterprise income tax incentive policy for enterprises investing in basic research

Additional deduction policy for R&D expenses

One-time pre-tax deduction policy for equipment and instruments.

Policy for accelerated depreciation or amortization period for externally purchased software

III. Individual Income Tax

Individual income tax exemption policy for science and technology awards granted by national, provincial, ministerial, and international organizations to science and technology personnel

IV. Import Taxation

Exemption from import duties and import segment value-added tax, and consumption tax for imports used in scientific research, technological development, and teaching

V. Other Taxes and Fees

Exemption from property tax and urban land use tax on properties and land used by non-profit scientific research institutions

Fourth Part: Results Transformation

I. Value-Added Tax

Exemption from value-added tax for technology transfer, technology development, and related technology consultation and services

II. Enterprise Income Tax

Deferred taxation policy for enterprises investing in technological achievements as equity

Deferred taxation policy for enterprises transferring non-monetary assets to foreign investment

Reduction or exemption from enterprise income tax on income derived from technology transfer by resident enterprises

Pilot policy for enterprise income tax incentives for technology transfer in specified areas within the Zhongguancun National Independent Innovation Demonstration Zone

III. Individual Income Tax

Deferred payment of individual income tax on equity rewards for technology personnel in high-tech enterprises

Reduced individual income tax on cash rewards for the commercialization of technological achievements

Deferred taxation policy for individual income tax on equity rewards for the commercialization of technological achievements

Deferred taxation policy for individuals investing technological achievements as equity

IV. Other Taxes and Fees

Incentives for reduced fees on patents

Reduction or exemption of application fees, substantive examination fees, annual fees, and review fees for invention patents

Fifth Part: Key Industry Development

I. Value-Added Tax

Immediate refund policy for value-added tax on software products.

Refund of retained value-added tax amount for major projects in the integrated circuit industry

Refund of retained value-added tax for manufacturing, scientific and technology service industries

II. Enterprise Income Tax

120% additional deduction for R&D expenses for integrated circuits and industrial machines

Tax reduction or exemption policies for integrated circuit and software enterprises

Pre-tax deduction policy for employee training expenses for integrated circuit design enterprises and software enterprises

Policy allowing immediate refund of value-added tax payments as non-taxable income for software enterprises

Policy for shortened depreciation period for production equipment of integrated circuit production enterprises

Reduced enterprise income tax rate of 15% for high-tech enterprises

Accelerated depreciation policy for fixed assets in manufacturing and information technology transmission industries

Reduced enterprise income tax rate of 15% for technologically advanced service enterprises

Tax incentive policy similar to that for the software industry for animation enterprises

Extended loss carryforward period for high-tech and technology-based small and medium enterprises

III. Import Taxation

Exemption from import duties, phased payment of import segment value-added tax for integrated circuit and software enterprises

Import duty exemption and phased payment of import segment value-added tax for new display enterprises

Exemption from import duties and import segment value-added tax for major technological equipment production enterprises and nuclear power project owners

Sixth Part: Entire Industry Chain

Deferred payment of individual income tax for small and high-tech enterprises increasing equity to individual shareholders

Tax policies for technology enterprise incubators, university science parks, and mass innovation spaces

Tax policies for domestic distribution of depositary receipts by innovation enterprises, including value-added tax, enterprise income tax, and individual income tax exemptions

Exemption from value-added tax on ticket revenues for science popularization entities