Enterprises and institutions to carry out preferential policies for technology transfer, technical consultation, technical services and technical training income.

According to the Notice (No.268 [1994]) of Beijing Local Taxation Bureau transmitting the Notice of the Ministry of Finance on Some Preferential Policies for Enterprise Income Tax in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), income tax is temporarily exempted for enterprises and institutions whose annual net income is less than 300,000 yuan, as well as the income from technical consultation, technical services and technical training related to technology transfer. It means:

Income from technology transfer of enterprises and institutions, as well as technical consultation, technical service and technical training related to technology transfer in the process of technology transfer, with an annual net income of less than 300,000 yuan, shall be temporarily exempted from income tax; Income tax shall be paid in accordance with the law for the part exceeding 300,000 yuan.

"Net income" refers to the income from technology transfer obtained by enterprises and institutions in accordance with regulations, and the balance of related technical consultation, service and training income minus the costs and expenses incurred in the process of technology transfer.