China News Online, August 1st (Reporter Yin Liqin) On July 31, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice on the Income Tax Policy for Key Industries in the Lingang New Area of China (Shanghai) Pilot Free Trade Zone" (hereinafter Referred to as "Notice"). The "Notice" stipulates that the Shanghai Lingang New Area is engaged in the relevant product (technical) business in key areas such as integrated circuits, artificial intelligence, biomedicine, civil aviation and other key fields, and conducts substantive production or research and development activities. For enterprises, the corporate income tax shall be levied at a reduced tax rate of 15% within 5 years from the date of establishment.
The "Notice" requires that enterprises that can enjoy this preferential corporate income tax policy must meet two conditions at the same time. The first is to register in the new area from January 1, 2020 (excluding companies that move into the new area from outside areas). The main business is to engage in the "New Area Integrated Circuit, Artificial Intelligence, Biomedicine, and Key Civil Aviation" A legal person enterprise with substantive production or R&D activities in related fields in the "Catalogue of Field Core Links". Among them, substantive production or R&D activities refer to the fact that the company has fixed production and business premises, fixed staff, and has the software and hardware support conditions that match the production or R&D activities, and carries out related businesses on this basis.
Second, at least one key product (technology) is included in the company's main R&D or sales products. The so-called key products (technology) refer to products (technology) that play an important role or indispensable in the industrial chain of key fields such as integrated circuits, artificial intelligence, biomedicine, and civil aviation.
In addition, the "Notice" also stipulates the conditions for the main body of enterprise investment and the conditions for enterprise R&D and production. Enterprises that can enjoy this preferential corporate income tax policy must also meet one of them.
The "Notice" also requires the Shanghai Municipal Finance and Taxation Department to work with the industry authorities to formulate specific operational management measures for key industrial enterprises, and report them to the Ministry of Finance and the State Administration of Taxation for the record.
The "Notice" will be implemented on January 1, 2020. If a qualified corporate enterprise has been registered in Lingang New Area before December 31, 2019 and is engaged in substantive production or research and development activities of the business listed in the "catalog", it can also be established for 5 years from 2020 to the enterprise This notice shall be implemented within the time limit. (Finish)