Caishui [2010]11No.
People's Republic of China (PRC) Ministry of Finance State Taxation Administration of The People's Republic of China 2010-12-31
All provinces, autonomous regions, municipalities directly under the central government, the finance departments (bureaus), the State Taxation Bureau, the local taxation bureau, and the Finance Bureau of Xinjiang Production and Construction Corps:
According to the relevant provisions of the Enterprise Income Tax Law of People's Republic of China (PRC) (hereinafter referred to as the Enterprise Income Tax Law) and the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) (the State Council Order No.512, hereinafter referred to as the Implementation Regulations), the relevant issues concerning the exemption and reduction of enterprise income tax on qualified technology transfer income are hereby notified as follows:
1. The scope of technology transfer includes the transfer of patented technology, computer software copyright, layout design rights of integrated circuits, new varieties of plants, new varieties of biomedicine and other technologies determined by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.
Among them, patented technology refers to inventions, utility models and designs that do not simply change the product form.
Two, the term "technology transfer" as mentioned in this notice refers to the transfer of technology ownership or global exclusive license for more than 5 years (including 5 years) in accordance with the provisions of Article 1 of this notice.
Three, technology transfer should sign a technology transfer contract. Among them, domestic technology transfer must be recognized and registered by the scientific and technological departments at or above the provincial level, cross-border technology transfer must be recognized and registered by the commercial departments at or above the provincial level, and technology transfer supported by financial funds must be approved by the scientific and technological departments at or above the provincial level.
The technology export of resident enterprises shall be reviewed by the relevant departments in accordance with the Catalogue of Technologies Prohibited and Restricted from Export in China issued by the Ministry of Commerce and the Ministry of Science and Technology (OrderNo. 12, 2008). Resident enterprises that obtain income from technology transfer whose export is prohibited or restricted shall not enjoy the preferential policy of reducing or exempting enterprise income tax from technology transfer.
4. The income from technology transfer obtained by resident enterprises from related parties whose total direct or indirect shareholding reaches 100% does not enjoy the preferential policy of enterprise income tax reduction and exemption for technology transfer.
V. This Notice shall be implemented as of June 1 2008.
hope this helps