China

Research & Development Tax Incentives in China 

Get your share from the R&D Tax Incentives in China

 

Tax incentives available for other conditions are minimal. The Chinese government has been offering various tax incentives to research and development (R&D) activities for resident enterprises for over ten years. Encouraging and nourishing R&D and innovation activities has become a national policy and is high on the agenda of ‘The 12th Five Year Plan’ of the Chinese government. A good understanding of R&D tax incentives can therefore lead to tax savings for your business. Are you getting your share from the R&D incentive in China?

 

 

Available R&D tax incentives in China

 

  • Reduced Corporate Income Tax (CIT) rate of 15% for High-New-Technology Enterprises (HNTE)

 

  • 150% super deduction for eligible R&D expenses

 

  • Tax concession for Advanced Technology Service Enterprises (ATSE)
    • Reduced CIT rate of 15%
    • Education fee not exceeding 8% of the total salaries of the ATSE can be deducted for CIT purposes, while the non-deducted part can be carried forward
    • Revenue derived from off-shore outsourcing services are exempted from BT
  • Customs Duty (CD) and Value Added Tax (VAT) exemption/refund for R&D equipment purchasing

 

  • Tax Concession on technology transfer
    • BT exemption on derivation of revenue
    • Profit on transfer of qualified technology is eligible for exemption/reduction of CIT

R&D activities may be found in the following industries:

 

 


Telecommunication

  • Design and development of innovative telecommunications products that offer encompassing frameworks for content delivery and network access for users
  • Design and development of high definition capabilities
  • Design and development of network infrastructure including the integration of new and existing infrastructure
  • Design and development of client side applications including new functions
  • Development of new and improved customer service capabilities
  • Design and development of new end-to-end marketing solutions
  • Design and development of a method of data collection, storage and management
  • Design and development of faster connections for landline, mobile and internet services
  • Design and development of a new method of interfacing between devices
  • Design and development of new hardware for telecommunications products
  • Design and development of new remote management capabilities
  • Design and development of new and efficient incident response services and capabilities

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Chemicals

  • Development of improved chemical production processes to various technical objectives
  • Development of new chemical production processes using advanced state-of-the-art technology:
  • Development of new catalyst package to improve chemical reaction rates
  • Development of new and improve solutions to cope with site specific constraints
  • Development of new and improved high tolerance integrated systems to overcome integration risks
  • Development of odour and emission controls during transient production environment

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Mining

  • Development of blasting processes
  • Development of ore extraction methods
  • Development of methods to improve transport of mining materials
  • Development of systems to detect mechanical faults and failures
  • Development of systems with standardised designs for reduced maintenance and capital costs
  • Development of methods to recycle used nuclear fuel

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Construction

  • Development of technically advanced construction methodologies for a large inner city road tunnel
  • Development of new modular construction systems
  • Experimentation with bitumen emulsions and investigations of the effects of changes in source raw materials
  • Advances in increased recycled content and fast curing properties in asphalt material science
  • Development of unique designs and construction methods for a technologically advanced purpose-built facility for data handling
  • Design and development of a stable core structure based on the application of unique in-situ reinforcement techniques
  • Development of piling/column construction techniques to avoid the need to remove contaminated soils whilst ensuring adequate structural strength in the overall structure and to reduce propping required.
  • Design and development of rapid construction methodologies based on precast components including precast beams, hollow core planks and structural steel
  • Design and develop unique temporary works structures
  • Development of new and improved warm mix asphalts
  • Design and development of high efficiency ventilation systems
  • Design and development of methods to optimise the use of natural daylight whilst minimising overheating due to radiant energy

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Food & Beverage

  • Development of meals for the airline industry.
  • Development of new processing technologies to achieve product and packaging performance targets of meals for the airline industry.
  • Development of a range of new and improved fruit based products.
  • Development of processes for fruit based products.
  • Development of new and improved fruit pastry and other products.
  • Development of new packaging for fruit based products.
  • Development of new chilled meals to meet product quality, flavour, texture, stability and packaging integrity.
  • Design and development of waste minimisation and utilization techniques for the food industry.
  • Design and development of new products with unique characteristics and nutritional benefits for thefood industry.
  • Design and development of methods to reduce the environmental impact from food processing operations.
  • Development of novel and differentiated vegetable products which impart known health benefits.
  • Development of methods to reconfigure product formulations and a number of required physical attributes to improve the eating quality of products.
  • Development of improved methods to extract protein from fish.
  • Development of food products with improved nutritional value for older people.
  • Development of improved methods of freezing products.

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Banking and finance

  • Design and development of a new web access security solution
  • Design and development of data mapping and translation process between security platforms
  • Design and development of a mobile phone banking platform (mobile banking “apps”) for real time access to account balances, transaction history, funds transfer and bill payment on a wide range of hand held devices
  • Design and development of an advanced procurement management solutions for real-time transactions, authorisation, delivery and bill processing
  • Design and development of an advanced core banking platform with internet access functionality via a specialised interface for corporate customers
  • Design and development of new and technically sophisticated direct share trading capabilities, corporate actions capabilities, and model portfolio capabilities
  • Design and development of a single consolidated portal for electronic delivery of multiple functionalities to third party, non-associated advisers and clients
  • Design and development of a new insurance rating system based on geocoding technology that will be accessible via multiple channels and used by third party non-associated users
  • Design, development and integration of a new generic application that will support User Interface integration with a third-party Payment Gateway for the purposes of capturing and processing Credit Card transactions of end customers in real-time.

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Aerospace/Aviation

  • Development of new ticketing systems
  • Design and development of improved navigational systems
  • Design and development of new and improved safety systems in aeroplanes
  • Design and development of new and improved integrated check-in and bag-drop processes to improve the “at airport” experience for customers
  • Design and development of new and improved luggage processing systems
  • Design and development of new and improved maintenance systems
  • Design and development of new and improved methods to reduce the fuel used during flights
  • Design and development of new and improved food processing systems for use in the manufacture of airline food
  • Design and development of new and improved in flight entertainment systems
  • Design and development of new and improved light weight devices (i.e. seats) to be installed into aeroplanes

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Information Technology

  • Development of new and improved data base management techniques
  • Development of algorithms to improve the speed of data processing
  • Development of new and improved methods of storing data to reduce space requirements
  • Development of new and improved methods of automatically analysing data in non-standard formats
  • Development of new and improved off line testing methods
  • Development of new and improved sales algorithms
  • Development of new and improved automation techniques to reduce the amount of manual data entry required
  • Development of new and improved methods of predicting user behavior
  • Development of new and improved Managed Internet Services
  • Development of new and improved filtration algorithms

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Nuclear

  • Development of methods to improve fuel technology
  • Development of methods to improve the thermal efficiency of plants
  • Development of systems with standardised designs for reduced maintenance and capital costs
  • Development of methods to recycle used nuclear fuel
  • Development of new methods to improve safety for workers in a nuclear power plant, including the development of passive nuclear safety system components that do not require operator actions or electronic feedback in order to shut down the plant safely in the event of certain emergencies.
  • Development of diagnostic components and associated materials that are able to survive extended periods in hostile environments such as those found in a fusion power plant.
  • Development of Plasma-Facing Materials and Components

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