Favorable Policy for High Technology Companies in Shanghai
It is a common question for the foreign investors as where to set up the company and they can enjoy the tax incentives. We found some government actions taken recently that tax incentive policies for encouraging the company’s investment in a certain area are gradually cancelled but there are more and more policies on the specific industry encouraged by the government. And among them, the most popular one is the high technology industry.
As the powerful action to stimulate the “Industry Transformation”, Shanghai municipal commission of economy and information, Shanghai municipal education commission and Shanghai Municipal Ministry of Commerce recently issued a financial subsidy policy for the advanced technology SMEs in Shanghai.
Qualification for Financial Subsidy:
l SMEs as the qualified enterprise technology center at the district level and having no bad record or IPR disputes.
l The technology is involve in the below categories as the calculative hi-tech and encourage hi-tech.
Calculative category: internet audio and video, intelligence transportation, internet finance, internet education, big data, 3d print, intelligence robot, online transaction platform for big commercial products, intelligence green furniture, M2M, intelligence wearing equipment, intelligence medical, inspection and certifying service, satellite guidance, creative and fashion design;
Encouraged category: New-type electronic information, manufacturing of the high-end equipment, energy-saving and new energy automobile, civil aerospace, biology and medical, new material, energy saving and environment protection, precise chemical industry and oil chemical industry, high-end shipbuilding and oceanography engineering, modern metropolis industry, software and information service, and manufacturing service.
l The company should outsource the technical service to the local university and the total contract price is no less than RMB500,000.
Financial subsidy
60 companies among (in total) 1078 companies in Shanghai will gain RMB200, 000 as the financial subsidy.
We may also learn the principal and purpose for the government:
l Encourage the enterprise to cooperate with the local institution, and strengthen the officer’s attention on its administration;
l Find a new way for financial subsidy;
l Improve the cross administration between several departments;
l Realize final target for the technology innovation.
Further, we advise the company should pay close attention if they are interested in such subsidy and apply for it in time.
If you want to know more details, please contact our senior consultant.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021
Email: jojohu@shanghaiinvest.com