Unscramble the Tax Incentives of High Tech Enterprises

Posted by on October 24, 2011 under High Tech Enterprises | Be the First to Comment

To encourage and promote the development of high tech enterprises, according to enterprises income tax law, enterprises income tax law implement rules and other relevant regulations, high tech enterprises could enjoy 15% preferential tax rate. To enjoy the tax incentive, high tech enterprise should record in tax authorities with the following issues in attention:
Firstly, the ratio of high tech products (or service) income and RD cost. According to regulations, the ratio of high tech products (or service) should take more than 60% of the whole income, and the ratio of RD cost should up to 3%, 4% and 6% on the basis of sales revenue. Enterprises should pay much attention to the whole revenue and the sale revenue to avoid the confusion with these two ratios.
Secondly, the ratio of technical staffs and RD staffs. To pass the high tech recognition, enterprises should get more than 30% technical staffs with college degree or above and more than 10% RD staffs. Enterprises should know that the scope of college degree is broad, including human and science. In actually, only science degrees are qualified for high tech recognition. In addition, those staffs should work continuously in enterprises more than 183 days.
Thirdly, other expense in RD cost. In accordance with regulations, the other expense in RD cost should not exceed 10% in general. In actually, some enterprises’ other expense in RD cost do exceed 10%, in this case, if enterprises could give reasonable explanations and supporting documents, it could be accepted, but still in certain risks.