Corporate Income Tax Policies

The corporate income tax of the recognized high-tech enterprise and technologically advanced service enterprise (TASE) shall be levied at the reduced rate of 15%.
For TASE enterprises, the part not exceeding 8% of total salary for employee education expense shall be deducted prior to taxation.
The preferential policies of "2 years' full exemption and 3 years' half deduction" for corporate income tax shall be applied to newly established software enterprises and integrated circuit design enterprises commencing in the profit-making year upon its recognition before December 31, 2017.
For IC design enterprises and qualified software companies, the employee training expense should be calculated independently and be deducted according to actual expense when calculating tax payable.
Qualified energy-saving service companies are entitled to enjoy "3 years' full exemption and 3 years' half deduction" for corporate income tax, in accordance with relevant regulations of taxation law, commencing from the first operation income is generated.
For equity investment made by qualified venture investment enterprises on not yet listed small and medium high-tech enterprises for 2 years (24 months) or longer, 70% of the investment amount shall be deducted as tax to be paid by the venture investment company after holding the equity for 2 years.
For qualified enterprises’ incomes generated from technology transfers, corporate income tax shall be exempted for the part not exceeding 5 million RMB, and shall be reduced to half for the part exceeding 5 million RMB.
For small low-profit enterprises, corporate income tax shall be levied at the reduced rate of 20%; for those with annual tax payable lower than 100, 000 RMB (Including), the income taxable shall be reduced to 50%.
Enterprises whose R & D development costs shall be entitled to pre-tax deductions when calculating
tax payable.
For cultural creation and design service enterprises, the part for employee education expense not exceeding 8% of total salary can be deducted when calculating tax payable.

VAT/Business Policies

For general VAT taxpayers that sell in-house-developed software products(Including self-developed animation software),VAT shall be levied at 17％ according to the tax law, and the portion of actual taxation exceeding 3％ shall be refunded to the company upon collection.
General VAT taxpayers who sell imported software after localization shall be entitled to enjoy VAT refund as specified above for the sales of such software products.
Before Dec 31, 2018, VAT shall be exempted for companies whose income generated from offshore service outsourcing business.
For cultural products and services prioritized by the state, including cultural creation and design service export, apply zero tax rate on VAT and business tax.
For qualified energy saving service companies, business tax payable for implementing energy performance contracting projects shall be exempted.

Talents Policies

Provide fixed amount training subsidy of no more than 4,500 RMB to service outsourcing enterprises for each new hire of university graduate or higher education that signs over 1 year (Including 1 year) of labor contract with the enterprise to conduct service outsourcing business (To be used only on the training for the above employee).
Provide fixed amount training subsidy of no more than 500 RMB per person to training agencies for training of service outsourcing talent with university or higher education, who pass the examination of service outsourcing business domain knowledge and skills training, and signs labor contract for 1 year or above with service outsourcing enterprise.
Talent apartment policy is applicable to those with university or higher education who work in enterprises of DHTZ, and meet certain qualifications.

Entrepreneurship Policies

Reward innovative incubators recognized by national, provincial, and municipal authorities in different scales; Subsidize on site use and broadband services.
Provide subsidies on non-profit entrepreneurship road shows, contests, training camps and forums that are organized by innovative incubators.
Set up DHTZ emerging industry development guiding fund, participate in angel funds and venture capital funds established by incubators; Set up Science & technology credit risk compensation special fund to guide banks to provide credit support for innovative and venture enterprises.
For high-tech enterprises, software enterprises, and TASE enterprises cultivated by incubators, grant rewards to incubators and incubated enterprises respectively.