Beijing, China (PressExposure) November 03, 2009 -- Edward Lehman, Managing Director of the âRed Circleâ firm, Lehman, Lee & Xu commented that âour firm has assisted numerous companies to obtain Torch certification. Most of the projects we have been involved with have involved software development, telephony, and green energy and pollution control technologies. In every case, our clients achieved certification as a âhigh and new technology enterpriseâ and qualified for tax abatements. While the preparing the required documentation and dealing with the certification authorities can be lengthy and difficult, the results for the client have always been worth the effort.â
The new Corporate Income Tax Law implemented in 2008 provides that the high and new technology enterprises entitled to major support from the State shall be subject to preferential corporate income tax of 15%. To qualify as a âHigh and New Technology Enterpriseâ, the enterprise must be engaged in: electronic information technology, biological and new pharmaceutical technology, aviation and aerospace technology, new material technology, high technology service, new energy and energy saving technology, resource and environmental technology, and the adoption of high and new technology for transformation of traditional industries.
According to the Ministry of Science and Technology (MST), by the end of 2008, 15,541 enterprises had obtained certification as high and new technology enterprises and therefore entitled to preferential policies of corporate income tax abatement. The Chinese government bureau responsible for the certification process is the Torch High Technology Industry Development Center of MST (âTorch Centerâ). Recently, the Torch Center has joined hands with other relevant departments of the MST to conduct investigations on the certification, policy implementation and effects of high and new technology enterprises in ten provinces and municipalities across the country. These investigations have shown that the policies for supporting high and new technology enterprises have proven effective in terms of promoting the innovation activities of enterprises and spurring growth of tax revenue. Wan Gang, the Minister of Science and Technology, said that the preferential taxation policy serves as the most direct and effective approach to fostering the development and growth of high and new technology enterprises.
Lehman, Lee & Xu is a prominent Chinese corporate law firm and trademark and patent agency with offices in Beijing, Shanghai, Shenzhen, Hong Kong, Macau, and Mongolia. The firm is recognized as a leading expert in corporate law and an active member of the Shanghai community.
To learn more about us, please visit our website at http://www.lehmanlaw.com