High-tech enterprise recognition

I.Definition: 

        High-tech enterprises are resident enterprises registered in China (excluding Hong Kong, Macao and Taiwan) within the "High-tech fields supported by the State", which continuously carry out research and development and transformation of technological achievements, form the core independent intellectual property rights of the enterprise, and carry out business activities on this basis. 

II.Valid period: 

The qualification of High-tech Enterprise is effective from the date of issuing the certificate and is valid for three years. 

III.The benefits of identifying high-tech enterprises 

(1) Entitled to tax relief optimization policy 

The enterprise income tax rate of recognized high-tech enterprise is decreased from 15% to 25%, equivalent to a decrease by 40% on the original basis, with a valid period of 3 years, upon which re-recognition is allowed, and then entitled to 3-year tax incentives, if being re-recognized. 

(2) Government funding support 

The identified high-tech enterprises can enjoy national, provincial, municipal and county (district) funding support and financial allocation with the approval document and the "high-tech enterprise certificate"; meanwhile, the title of high-tech enterprise will be a basic threshold for many policy funding support. 

(3) National-level qualification certification 

High-tech enterprises can reduce or exempt the enterprise income tax, which is a rare national level qualification certificate for any enterprise. It is beneficial to the market value for enterprises to open up domestic and foreign markets, and proves that the enterprise has reached at least the domestic or international advanced level in technology level; Having key technologies and key innovative products that have an impact on and drive the industry; It has strong capability of technological innovation, high-end technological development and competitiveness in cutting-edge technological fields, which are necessary conditions for bidding. 

(4) Capital value is necessary for attracting policy and financial support from local governments and industrial organizations; for attracting the intervention of venture capital institutions and financial institutions to promote the industrial expansion of enterprises; and for enterprises to raise capital and go public in the capital market. 

(5) Brand value to prove that the enterprise has good potential economic benefits, is expected to form a new industry of high-tech transformation projects; prove that the enterprise has a high level of innovation and strong market competitiveness, is the national key support with high growth enterprises. It is an indispensable brand for companies that rely on science and technology, and is second only to China's famous brand products and China's well-known trademarks. 

(6) Financial value of high-tech enterprises enjoy a preferential income tax rate of 15%, equivalent to a 40% reduction in corporate income tax. For enterprise research and development expenses, the deduction shall be added at 50% or amortized at 150% of the cost of intangible assets; land use right premiums shall be levied at 50-75%. It is entitled to RMB100K and above recognition funding granted by Shenzhen City and its districts. 

VI.Application conditions 

(1) The enterprise must be incorporated for more than one year when applying for recognition; 

(2) The enterprise acquires the ownership of the intellectual property rights that play a core supporting role in technology for its main products (service) through independent research and development, transfer, grant, merger and acquisition, etc.; 

(3) The technology that plays a core supporting role for the enterprise's main products (service) falls within the scope of the "State Key Support Areas of High and New Technology"; 

(4) enterprises engaged in research and development and related technological innovation activities of scientific and technical personnel accounted for not less than 10% of the total number of employees in the enterprise; 

The ratio of the total research and development expenses to the total sales revenue of the enterprise in the last three fiscal years (calculated according to the actual operating period if the actual operating period is less than three years, the same below) meets the following requirements (3) For enterprises with sales revenue of RMB200M or more in the most recent year, the percentage shall not be less than 3%. Among them, the total amount of research and development expenses incurred by the enterprise in China accounts for not less than 60% of the total amount of all research and development expenses. 

The proportion of high-tech products (service) income in the recent year to the total income of the enterprise in the same period is not less than 60%; 

The evaluation of the innovation capability of the enterprise should meet the corresponding requirements; 

No major safety, major quality accidents or serious environmental violations have occurred within one year prior to the enterprise's application for recognition. 

(4) What are the processes for declaring high-tech enterprises 

Self-evaluation → registration → submission of materials → expert evaluation → identification and preparation → public announcement 

VI.Filing Materials 

(1) "High-tech Enterprise Application Form" (printed online and signed, stamped with the company's official seal); 

(2) A copy of the Business License and other relevant registration documents proving the establishment of the enterprise according to law; 

(3) Materials related to intellectual property rights (intellectual property certificates and supporting materials reflecting technical level, participation in the formulation of standards, etc.), proof of the establishment of scientific research projects (acceptance or completion reports should be attached to accepted or completed projects), transformation of scientific and technological achievements (overall situation and form of transformation, itemized description of application effectiveness), research and development organization and management (overall situation and specific description of compliance with the four indicators) and other relevant The project must be accompanied by the relevant materials; 

(4) Specific descriptions of key technologies and technical indicators of the enterprise's high-tech products (service), relevant production approvals, certification and qualification certificates, product quality inspection reports and other materials; 

(5) The enterprise employees and scientific and technical personnel description materials, including the number of working, part-time and temporary employment, personnel academic structure, the list of scientific and technical personnel and their jobs, etc.; 

(6) The special audit or verification reports on the enterprise’s R&D expenses in recent three fiscal years (the actual operating years, if less than 3 years, ditto) and the income of hi-tech products (service) in the past fiscal year issued by a qualified and “Work Guideline” compliant intermediary agency, plus R&D activities description materials; 

(7) The financial and accounting reports (including accounting statements, notes to the accounting statements and financial statements) for the last three fiscal years certified by a qualified intermediary agency; 

(8) Annual tax return for enterprise income tax for the last three fiscal years (including the main form and schedules). 

VII.Filing Process (Cooperation Process) 

①Free consultation → ②Conclusion of contract → ③Writing of project materials → ④Submission of application and declaration → ⑤Approval → ⑥Implementation → ⑦1-year implementation period, acceptance