Legal basis: Article 22 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Technical Contract Disputes, the contract concluded on the technical achievements to be researched and developed or the knowledge, technology, experience and information not involving patents, patent applications and technical secrets does not belong to the technology transfer contract or technology licensing contract as stipulated in Article 862 of the General Principles of the Civil Law.
The agreement in the technology transfer contract that the transferor provides the transferee with special equipment and raw materials for implementing the technology or provides relevant technical consultation and technical services is an integral part of the technology transfer contract. Disputes arising therefrom shall be handled in accordance with the technology transfer contract.
Where the parties enter into a joint venture contract in the form of technology shares, but the technology shareholders do not participate in the operation and management of the joint venture, and agree in the form of guarantee clauses that the joint venture or joint venture shall pay the technology price or use fee, it shall be regarded as a technology transfer contract or a technology licensing contract.
People's Republic of China (PRC) enterprise income tax law
Article 28 The enterprise income tax shall be levied at a reduced rate of 20% for qualified small-scale enterprises with low profits.
High-tech enterprises that need special support from the state shall be subject to enterprise income tax at a reduced rate of 15%.
Article 30 The following expenses of an enterprise may be added and deducted when calculating the taxable income:
(a) research and development expenses incurred in the development of new technologies, new products and new processes;
(two) the wages paid by the disabled and other employed persons encouraged by the state.