Guo Ke Fa Huo [2008] No.362

Departments (Bureaus) of science and technology and departments (bureaus) of finance of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, the State Administration of Taxation and local taxation bureaus

The Measures for the Administration of the Recognition of Hi-tech Enterprises (Guo Ke Fa Huo [2008] No.172, hereafter referred as the Measures for the Recognition) and the Hi-tech Sectors Mainly under the State Support have been printed and distributed to you. In order to ensure the administration work is effective and standard, according to the provisions of Article 19 of the Measures for the Recognition, the Guidelines for the Administration of the Recognition of Hi-tech Enterprises (hereafter referred as Guidelines) is hereby printed and distributed to you, and relevant issues are announced as follows:

1. Bureaus of science and technology, bureaus of finance and bureaus of taxation of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan shall fully recognize the importance of the administration of the recognition of hi-tech enterprises, have a close cooperation, establish recognition and administration agencies in a timely manner, and put the recognition of local hi-tech enterprises and tax preference policies into effect together.

2. The hi-tech qualifications for enterprises inside or outside the state hi-tech industrial development zones (including Beijing experimental zone for developing hi-tech industries) which were recognized according to the former measures for the recognition by the end of 2007 but still within the effective date, shall be effective, but such enterprises may share enterprise income tax preferential policies according to the relevant provisions of the Enterprise Income Tax Law and its regulations on the implementation after have been qualified by re-recognition pursuant to the Measures for the Recognition and the Guidelines. Such enterprises may apply for re-recognition according to the Measures for the Recognition and the Guidelines before or after the expiration of qualifications.

3. For the hi-tech enterprises that receive preferential treatment of regular tax reduction or exemption according to former laws and whose qualifications are not expired, relevant provisions in the Notification of the State Council on Carrying out the Transitional Preferential Policies concerning Enterprise Income Tax (Guo Fa [2007] No.39) shall be executed.

4. For hi-tech enterprises that newly set up in special economic regions and Shanghai Pudong New District and recognized according to the Measures for the Recognition and Guidelines, relevant provisions in the Notification of the State Council on Providing Transitional Preferential Tax Treatments to Hi-tech Enterprises Newly Set up in Special Economic Zones and Pudong New District of Shanghai (Guo Fa [2007] No. 40) shall be executed.

5. Since the administration of the recognition of hi-tech enterprises weighs strong policy consideration and has high professional requirements, all bureaus shall provide key staff, ensure the funds required by the recognition, and propose feasible suggestions on policies according to new circumstances and issues arising out of the local recognition work in a timely manner.

Annex: Guidelines for the Administration of the Recognition of Hi-tech Enterprises (omit)

The Ministry of Science and Technology PRC

The Ministry of Finance PRC

The State Administration of Taxation

July 8, 2008