Cai Shui [2020] No. 61

Beijing Municipal Finance Bureau, Beijing Municipal Tax Service of State Taxation Administration, Beijing Municipal Science and Technology Commission, and Beijing Municipal Intellectual Property Office:

In accordance with the guiding principles of the official replies by the State Council, the notice regarding the Policies Pertaining to Pilot Projects of Corporate Income Tax for Transfer of Technology in Designated Areas of Zhongguancun National Innovation Demonstration Zone is hereby announced as follows:

1. For resident enterprises in designated areas of Zhongguancun National Innovation Demonstration Zone, corporate income tax exemption applies to the eligible income from technology transfers of not more than CNY 20 million in a taxable year, while corporate income tax for the part of such income above CNY 20 million will be subject to a deduction by half.

Designated areas of Zhongguancun National Innovation Demonstration Zone refer to: Chaoyang Park, Haidian Park, Fengtai Park, Shunyi Park, Daxing–E-Town Park, and Changping Park.

2. Technology in this notice refers to patents (including national defense patents), computer software copyright, exclusive rights to integrated circuit layout design, new plant variety rights, new varieties of bio-medicines, and other technologies as identified by the Ministry of Finance and the State Taxation Administration. A patent refers to the exclusive rights of a patent holder for invention and creation, including inventions, utility models, and designs.

3. Technology transfer in this notice refers to the transfer of the ownership of technology by resident enterprises as defined in Article 2, or the transfer of non-exclusive licensing and global exclusive licensing for a period of three years and above.

4. Contracts shall be signed for such transfer of technology. Related management matters will be executed in accordance with Article 3 of the Notice from the Ministry of Finance and the State Administration of Taxation on Issues Concerning Corporate Income Tax Policies for Technology Transfers of Resident Enterprises (Cai Shui [2010] No.111).

5. An eligible resident enterprise may enjoy preferential policies stipulated in this notice for the technology transfer income from affiliated parties for which it directly or indirectly holds 100 percent of the shares.

6. This notice is to take effect as of January 1, 2020.

Ministry of Finance of the People's Republic of China

State Taxation Administration of the People's Republic of China

Ministry of Science and Technology of the People's Republic of China

National Intellectual Property Administration of the People's Republic of China

December 25, 2020