Can the technology transfer contract be exempted from VAT?

Technology transfer contracts can be exempted from value-added tax. Technology transfer contracts include patent right transfer, patent application right transfer and technology secret transfer. The parties may apply to the competent tax authorities with the registration certificate and enjoy the preferential tax policies stipulated by the state.

legal ground

Article 15 of the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax.

The following items are exempt from value-added tax:

(1) Self-produced agricultural products sold by agricultural producers;

(2) Contraceptive drugs and devices;

(3) old books;

(4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

(5) Imported materials and equipment provided free of charge by foreign governments and international organizations;

(six) articles for the disabled directly imported by organizations for the disabled;

(7) selling articles for personal use.

In addition to the provisions of the preceding paragraph, the items of tax exemption and reduction of value-added tax shall be stipulated by the State Council. No region or department may stipulate tax exemption or reduction items.