Securing Research & Development Tax Incentives in China

The Chinese Government has been encouraging and promoting research & development (R&D) for over ten years by offering tax incentives to resident enterprises who conduct R&D activities. For example, for high and new technology enterprises ("HNTE"), corporate income tax rates would be reduced from 25 percent to 15 percent; and for qualified R&D expenditures, an entity could claim 150 percent as a deduction for corporate income tax purposes. A good understanding of R&D tax incentives can lead to significant tax savings for your business. At the same time, the Chinese government has also conducted investigations into enterprises who claim R&D tax incentives. Specifically, from April 1, 2013, Chinese government authorities are conducting audits on HNTE status. Any unqualified HNTE would be required to pay back the outstanding tax and levied fine. On the other hand, due to the different interpretation of the R&D activities, some entities which should be qualified for R&D tax incentives have never claimed the incentives, or did not deduct enough R&D expenditures.

AmCham China's Tax Forum cordially invites you to attend this event on securing R&D tax incentives in China. Questions to be answered and discussed by two senior-level tax professionals include:

• Whether "core technology" is relevant to all products;
• Whether all R&D expenditures are qualified according to certain criteria;
• Whether your technology team and finance team speak the same language;
• Whether the application documents detailed describe R&D projects.