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ARTICLE · 16 MAY 2008

High Technology Enterprise Status, New Circular Defines Eligibility Criteria

CMS Cameron McKenna Nabarro Olswang
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Under the New Corporate Income Tax Law (“CIT Law”), those High/New Technology Enterprises (“HNTEs”) eligible for key support from the State may enjoy a reduced income tax of 15%, as opposed to the standard tax rate of 25%.

ChinaTax
Jonathan Selvadoray
Jonathan Selvadoray

Under the New Corporate Income Tax Law ("CIT Law"), those High/New Technology Enterprises ("HNTEs") eligible for key support from the State may enjoy a reduced income tax of 15%, as opposed to the standard tax rate of 25%. The Detailed Implementation Regulations of the CIT ("DIR") stipulates the basic criteria for an enterprise to qualify as HNTE, but the rest remains ambiguous.

On April 14, 2008, the Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation jointly issue the Circular GuoKeFaHuo [2008] No. 172 (the "Circular"), which contains:

  • "Provisions of Recognition of High/New Technology Enterprise"("Provisions"), and

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