Shares in technological achievements also belong to the category of non-monetary investment, and more preferential policies are given to individuals who invest in technological achievements. According to the Notice of the Ministry of Finance on Perfecting the Income Tax Policies for Equity Incentives and Technology Shares in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Caishui [2016]10/No.), if an individual invests in a domestic resident enterprise with technological achievements and all the consideration paid by the invested enterprise is shares (rights), the individual can choose to continue to implement the current relevant tax policies or apply the deferred tax preferential policies. If the deferred tax policy is chosen for the investment in technological achievements, the tax may not be paid in the current period of investment and shareholding after filing with the competent tax authorities. When deferred to share transfer is allowed, the income tax shall be calculated and paid according to the difference between the original value of technological achievements and reasonable taxes and fees. When an individual transfers his equity, he is deemed to have priority in the transfer of equity and enjoys the preferential tax deferred policy. The equity cost of deferred tax payment shall be calculated according to the weighted average method, and shall not be combined with the equity cost obtained by other means.
It should be noted that: first, the shares are invested in domestic resident enterprises, which should be subject to audit and collection. Second, the ownership of technological achievements is transferred to the invested enterprise, so the right to use the technological achievements invested will not be subject to deferred tax treatment. Third, the deferred tax preferential policy can only be applied when the consideration paid by the invested enterprise is all shares (rights). If part of the shares are stocks, you can't choose the deferred tax preferential policy. 4. Technological achievements refer to patented technology (including national defense patents), computer software copyright, exclusive right of integrated circuit layout design, right of new plant varieties, right of new biomedical varieties, and other technological achievements recognized by Ministry of Science and Technology, Ministry of Finance and State Taxation Administration of The People's Republic of China of the People's Republic of China.