Becoming a High and New Technology Enterprise (hereinafter referred to as “High-Tech Enterprise” or “HTE”) brings a wide range of benefits, including fiscal and tax incentives, intellectual property (IP) protection, equity-based incentives, talent recruitment support, access to science and technology programs, preferential land use for projects, and favorable financial and insurance services. On one hand, certified enterprises are eligible for tax incentives such as reduced corporate income tax rates and value-added tax (VAT) exemptions or reductions. On the other hand, HTE certification provides enhanced IP protection and related policy benefits—for example, fee reductions for patent applications and IP-backed financing. Additionally, HTE status helps attract top-tier talent, elevate the company’s overall technological capabilities, and drive industrial innovation and upgrading.

I.  What Is a High-Tech Enterprise?

A High-Tech Enterprise refers to a resident enterprise that continuously engages in research and development (R&D) and technology commercialization within the scope of the Nationally Prioritized High and New Technology Fields issued by the state, has independently owned core intellectual property rights, and conducts business operations based on these technologies. The Nationally Prioritized High and New Technology Fields encompass eight major categories: 1. Electronic Information 2. Biotechnology and Pharmaceuticals 3. Aerospace 4. Advanced Materials 5. High-Tech Services 6. New Energy and Energy Conservation 7. Resources and Environment 8. Advanced Manufacturing and Automation

II.  Policy Incentives and Benefits of HTE Certification

Once certified as a High-Tech Enterprise, companies gain access to both tangible financial rewards and intangible strategic advantages.

1. Direct Government Financial Rewards

Local fiscal subsidies: Enterprises that successfully obtain HTE status typically receive one-time cash rewards ranging from RMB 250,000 to RMB 2 million (amounts vary based on local policies and project outcomes). R&D expense reimbursement: For enterprises demonstrating sustained year-over-year growth in R&D investment, local governments provide post-facto fiscal subsidies calculated as a percentage of the incremental R&D expenditure.

2. Significant Tax Reductions and Exemptions

Reduced corporate income tax (CIT): The standard CIT rate of 25% is lowered to 15% for qualified HTEs. Special incentives for software and integrated circuit (IC) enterprises: Eligible enterprises may enjoy CIT exemption for the first five years and a 50% reduction (i.e., 12.5%) in years six to ten. Nationally prioritized IC design and software enterprises may further benefit from a preferential 10% CIT rate in subsequent years. Tax exemption on technology transfer income: Technology transfer income up to RMB 5 million per year is exempt from CIT; income exceeding this threshold is taxed at a 50% reduction.

3. Strategic Long-Term Advantages Beyond Direct Subsidies and Tax Savings

Prestigious recognition: HTE certification serves as a “golden seal of approval,” unlocking additional opportunities such as priority consideration for major national science and technology projects, mandatory eligibility in many public tenders, and preferential policies for attracting and settling high-caliber talent. Super-deduction of R&D expenses: Enterprises may claim an additional 75% deduction on qualifying R&D expenditures for tax purposes. If such expenditures result in intangible assets, these assets can be amortized at 175% of their cost. Of course, the full suite of available incentives depends on the enterprise’s specific projects and operational context—feel free to consult us for tailored guidance!

III.  Eligibility Criteria for HTE Certification (All Conditions Must Be Met Simultaneously)

1. The enterprise must have been legally registered and operating for at least one full year at the time of application. 2. The enterprise must own intellectual property rights—acquired through independent R&D, assignment, donation, or acquisition—that provide core technological support for its main products or services. 3. The core technologies supporting the enterprise’s main products (or services) must fall within the scope of the Nationally Prioritized High and New Technology Fields. 4. Scientific and technical personnel engaged in R&D and related innovation activities must constitute no less than 10% of the enterprise’s total workforce in the year of application. 5. The ratio of total R&D expenditures over the past three fiscal years (or actual operating period if less than three years) to total sales revenue during the same period must meet the following thresholds:     ① For enterprises with annual sales revenue ≤ RMB 50 million: R&D intensity ≥ 5%     ② For enterprises with annual sales revenue between RMB 50 million and RMB 200 million: R&D intensity ≥ 4%     ③ For enterprises with annual sales revenue > RMB 200 million: R&D intensity ≥ 3%     Additionally, R&D expenditures incurred within mainland China must account for no less than 60% of the total R&D spending. 6. Revenue from high-tech products (or services) in the most recent fiscal year must represent at least 60% of the enterprise’s total annual revenue. 7. The enterprise must achieve a minimum score of 71 out of 100 in the official “Innovation Capability Evaluation.” This evaluation assesses four dimensions: intellectual property, capacity for technology commercialization, R&D organizational management, and enterprise growth. 8. The enterprise must not have been involved in any major safety incidents, major quality failures, or serious environmental violations in the 12 months prior to application.

IV.  HTE Application Timeline (Annual Schedule Remains Largely Consistent)

(1) First Batch – New Applications Online submission window: June 5, 2023 – June 26, 2023 (closes at 18:00) Hard-copy document submission: June 29, 2023 – July 10, 2023 (closes at 17:45)

(2) Second Batch – New Applications Online submission window: July 11, 2023 – August 3, 2023 (closes at 18:00) Hard-copy document submission: August 4, 2023 – August 21, 2023 (closes at 17:45)

Enterprises planning to apply for HTE certification should begin preparations well in advance. The earlier and more thoroughly you prepare, the higher your chances of success. Moreover, the required application materials must be highly professional, comprehensive, and meticulously organized.