2012-10-19-KPMG_China-获取您在中国研发活动的税收优惠_12页_607kb

analyzed the detailed information on tax incentives available in China.

Securing Tax Incentives Across China

Overview

• For over 10 years, the Chinese Government has encouraged enterprises to enhance product, process improvement, and knowledge development.
• Understanding government incentives can lead to significant tax savings.

Key KPMG Support Points

1. Size: KPMG can assess the scope of projects and trace costs.
2. Range: KPMG can minimize business disruption.
3. Activities: KPMG engineers identify eligible activities.
4. Scope: KPMG manages risk and compliance.

Available Tax Incentives

1. 150% Super Deduction:

   • Eligible Activities: Systematic activities aiming for new knowledge or substantial improvements, incurring specific qualifying expenses (covering salaries, materials, depreciation, etc.).
   • Benefit: A 150% tax deduction, yielding a net benefit of approx. 12.5%.

2. Reduced Corporate Income Tax (CIT) Rates (15%) for:

   • High and New Technology Enterprises (HNTE):
     • Qualification (Example): HNTE in Biotech requiring IP, location, R&D expenses, profit thresholds. Scope is wide.
   • Advanced Technology Service Enterprises (ATSE):
     • Qualification (Example): Beijing-based ITO/BPO/KPO provider, >50% revenue/sharers from ATS, >50% R&D.
     • Benefit: 15% CIT rate, potential reversal of education tax credits, VAT zero-rating for offshore outsourcing revenue.

3. Import/Manufacture Tax Benefits for R&D (Import/Manufacture):

   • Eligibility: Qualified R&D centers.
   • Benefit: Import duty exemption for qualified R&D equipment, VAT refund on domestic equipment purchases.

4. Tax Concession on Technology Transfers:

   • Eligibility: Revenue derived from tech transfer (development, consultancy).
   • Benefit: VAT exemption and CIT exemption/reduction on profits (first RMB 5 million exempt, proportionate reduction afterward on excess profit).

How KPMG Can Assist

• Identify eligible activities and expenses.
• Streamline operations, review/compliance documentation.
• Liaise with authorities, manage audits.
• Establish review procedures, manage transfer pricing.
• Offer specialist advice, outsourced R&D services.

Contact Information: Provided for various regions in China and Hong Kong.

Disclaimer: This summary reflects the tax incentive information outlined in the provided document and is intended for informational purposes. Consultation with KPMG or relevant authorities is recommended for specific cases.