(1) High-tech enterprises identified by the state as requiring priority support shall be subject to a reduced corporate income tax rate of 15%. 1. For a given tax year, the portion of a resident enterprise’s income from technology transfers not exceeding 5 million yuan shall be exempt from corporate income tax; the portion exceeding 5 million yuan shall be subject to corporate income tax at half the standard rate.2. Research and development expenses incurred by an enterprise for the development of new technologies, new products, or new processes that are not capitalized as intangible assets but are expensed in the current period shall be subject to an additional deduction equal to 50% of the R&D expenses, in addition to the actual deduction allowed under regulations; if such expenses are capitalized as intangible assets, they shall be amortized at 150% of the cost of the intangible assets.
— Enterprise Income Tax Law
— "Implementing Regulations of the Enterprise Income Tax Law of the People’s Republic of China" (Decree No. 512 of the State Council of the People’s Republic of China)
(2) For actual R&D expenses incurred by enterprises in R&D activities that are not capitalized as intangible assets but are recognized as current period expenses, prior to December 31, 2023, in addition to the actual deduction as prescribed, an additional deduction of 75% of the actual amount incurred shall be allowed before tax; if such expenses result in the formation of intangible assets, they shall be amortized at 175% of the cost of the intangible assets before tax during the aforementioned period.For manufacturing enterprises, actual R&D expenses incurred in R&D activities that are not capitalized as intangible assets but are recognized in current period profit or loss shall, in addition to the actual deduction as prescribed, be subject to an additional tax-deductible allowance of 100% of the actual amount incurred, effective January 1, 2021; where such expenses result in the formation of intangible assets, they shall be amortized for tax purposes at 200% of the cost of the intangible assets, effective January 1, 2021.
— "Several Policy Measures of the Autonomous Region on Supporting the Development of the Real Economy through Tax and Fee Reductions" (Xin Zheng Ban Fa [2022] No. 5)
(3) For enterprises engaged in R&D activities outside the manufacturing sector—excluding the tobacco manufacturing, accommodation and catering, wholesale and retail, real estate, leasing and business services, and entertainment industries—actual R&D expenses that do not result in intangible assets and are recognized in current period profit or loss shall, prior to December 31, 2023, be eligible for an additional tax deduction of 75% of the actual amount incurred, in addition to the standard deduction based on actual expenses;If such expenses result in the formation of intangible assets, they shall be amortized before tax at 175% of the cost of the intangible assets during the aforementioned period.
— "Notice of the Ministry of Finance, the State Taxation Administration, and the Ministry of Science and Technology on Increasing the Pre-Tax Additional Deduction Ratio for Research and Development Expenses" (Cai Shui [2018] No. 99)
— Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Implementation Period of Certain Tax Preferential Policies (No. 6 of 2021)
(4) Post-certification subsidies and rewards for high-tech enterprises in the Xinjiang Uygur Autonomous Region. A one-time reward of up to 200,000 yuan is provided to high-tech enterprises certified for the first time, and a one-time reward of up to 100,000 yuan is provided to high-tech enterprises that have been recertified after the expiration of their three-year validity period.
(5) Post-subsidy rewards for R&D expenses of high-tech enterprises in the Xinjiang Uygur Autonomous Region. To support existing high-tech enterprises in expanding and strengthening their operations, post-subsidies are provided based on the enterprise’s R&D expenditure in the previous year, divided into six tiers: For amounts of 500,000 yuan or more (including 500,000 yuan) but less than 2,000,000 yuan (excluding 2,000,000 yuan), a post-subsidy of no more than 50,000 yuan is granted for R&D expenditure;For expenditures between 2 million yuan (inclusive) and 5 million yuan (exclusive), a post-subsidy of no more than 100,000 yuan is provided; For expenditures between 5 million yuan (inclusive) and 20 million yuan (exclusive), a post-subsidy of no more than 200,000 yuan is provided;For investments of 20 million yuan or more (including 20 million yuan) but less than 50 million yuan (excluding 50 million yuan), a post-investment subsidy of up to 400,000 yuan will be provided for R&D expenses;For amounts of 50 million yuan or more (including 50 million yuan) but less than 100 million yuan (excluding 100 million yuan), a post-investment subsidy for R&D expenses of no more than 500,000 yuan shall be granted; for amounts of 100 million yuan or more (including 100 million yuan), a post-investment subsidy for R&D expenses of no more than 1 million yuan shall be granted.
— "Notice on Issuing the <Administrative Measures for the Special Fund for the Development of High-Tech Enterprises in the Xinjiang Uygur Autonomous Region (Interim)>" (Xin Cai Gui [2021] No. 2)
(6) Newly recognized national-level and autonomous region-level key laboratories and engineering technology research centers shall receive one-time awards of 3 million yuan and 1 million yuan, respectively; newly recognized national enterprise technology centers shall receive a one-time award of 1 million yuan; and enterprise technology centers newly recognized by autonomous region high-tech enterprises shall receive a one-time award of 300,000 yuan.Research and innovation platforms that have achieved significant innovation results and whose research achievements have won the First or Second Prize of the National Science and Technology Award shall be granted one-time awards of 500,000 yuan and 300,000 yuan, respectively; those that have won the First or Second Prize of the Autonomous Region Science and Technology Award shall be granted one-time awards of 200,000 yuan and 100,000 yuan, respectively.
——"Interim Measures for Support and Rewards for the Construction of Autonomous Region Scientific Research and Innovation Platforms" (Xin Party Group Circular No. 6 [2020])
(7) Post-Certification Incentives for High-Tech Enterprises. A one-time incentive of up to 200,000 yuan shall be granted to high-tech enterprises certified for the first time; a one-time incentive of up to 100,000 yuan shall be granted to high-tech enterprises recertified upon the expiration of their three-year validity period; and high-tech enterprises that relocate in their entirety from outside the region to Hotan shall be treated as newly certified high-tech enterprises in the same year and granted a one-time incentive of up to 200,000 yuan.
Post-Subsidy Incentives for R&D Expenditures of High-Tech Enterprises. To support existing high-tech enterprises in expanding and strengthening their operations, post-subsidies will be provided based on the enterprise’s R&D expenditure in the previous year, categorized into six tiers. Specifically: for expenditures between 500,000 yuan (inclusive) and 2,000,000 yuan (exclusive), a post-subsidy of no more than 30,000 yuan will be granted;For expenditures between 2 million yuan (inclusive) and 5 million yuan (exclusive), a post-subsidy of no more than 50,000 yuan will be provided; for expenditures between 5 million yuan (inclusive) and 20 million yuan (exclusive), a post-subsidy of no more than 100,000 yuan will be provided;For amounts of 20 million yuan or more (including 20 million yuan) but less than 50 million yuan (excluding 50 million yuan), a post-investment subsidy for R&D expenses of no more than 200,000 yuan shall be granted; For amounts of 50 million yuan or more (including 50 million yuan) but less than 100 million yuan (excluding 100 million yuan), a post-investment subsidy for R&D expenses of no more than 300,000 yuan shall be granted;For investments of 100 million yuan or more (including 100 million yuan), a post-investment subsidy of up to 500,000 yuan will be provided for R&D expenses.
— "Measures for the Administration of Special Funds for the Development of High-Tech Enterprises in Hotan Prefecture (Interim)"
