What Trial Policies Are Taking Place To Encourage Development Of Advanced Technology Service Enterprises In Suzhou Industrial Park?
The Ministry of Finance (“MOF”), the State Administration of Taxation (“SAT”), the Ministry of Commerce (“MOC”) and the Ministry of Science and Technology recently released a notice outlining trial policies to encourage the development of advanced technology service enterprises in the Suzhou Industrial Park (“SIP”).
The notice broadens the scope of eligible High/New-Tech Enterprises in the SIP to include advanced technology service enterprises that meet relevant criteria. As from 1 July 2006, domestic or foreign-invested advanced technology service enterprises that are granted High/New-Tech Enterprise status are subject to a reduced enterprise income tax rate of 15%. Reasonable salary expenses that are actually incurred may be deducted in calculating enterprise income tax liability. Qualifying enterprises also enjoy other non-tax-related preferential policies.
The scope of advanced technology service enterprises under the trial policies includes software research and development (“R&D”) and services, product technology R&D and industrial design services, information technology R&D services, information technology outsourcing services and technical process outsourcing services. The notice also defines the recognition criteria, administrative procedures and scope of recognition.