The Value of Shanxi High-Tech Enterprise Certification

The Value of High-Tech Enterprise Certification

(1) Tax Incentives

Upon certification as a high-tech enterprise, companies can enjoy a reduced corporate income tax rate of 15% in the same year. The earlier the certification is obtained, the sooner the benefits can be enjoyed. Tax incentives, especially in the early stages of a company's growth, provide significant support.

(2) Certification Subsidies

Currently, various regions offer direct cash subsidies to enterprises that obtain high-tech certification for the first time. The subsidy amount far exceeds the cost of certification. In other words, applying for high-tech enterprise certification does not require spending any money and may even result in additional financial gains.

As the number of high-tech enterprises increases and policies tighten, one might wonder: Will subsidies continue indefinitely? If subsidies are suddenly discontinued, not only would companies have to cover the certification costs themselves, but stricter policies would also make certification more difficult to obtain!

(3) Asset Depreciation

High-tech enterprises can accelerate the depreciation of fixed assets. Fixed assets eligible for accelerated depreciation include:

1. Assets that become obsolete quickly due to technological advancements and product updates;

2. Assets that are constantly subjected to strong vibrations or high corrosion. When using the shortened depreciation period method, the minimum depreciation period must not fall below the relevant regulations.

(4) Financial Support

High-tech enterprise certification is a prerequisite for applying for various levels of government funding. It facilitates the application for special funds and subsidies, making it easier to attract venture capital investments and secure loans from major banks. The state also offers subsidies on loan interest for high-tech enterprises, resulting in low financing costs.

(5) Enhancing Corporate Brand Image

The process of obtaining high-tech enterprise certification encourages companies to improve their technological innovation capabilities and R&D management, thereby enhancing their core competitiveness. This provides a strong endorsement effect in market competition, serving as a significant advantage in both advertising and bidding processes.

(6) Exemption and Reduction of Corporate Income Tax

Income from qualified technology transfers by high-tech enterprises is exempt from or subject to reduced corporate income tax. For a tax year, technology transfer income of resident enterprises not exceeding RMB 5 million is exempt from corporate income tax; the portion exceeding RMB 5 million is subject to half the standard tax rate.

(7) Enterprise Listing

The title of high-tech enterprise is also a prerequisite for listing on the New Third Board and other stock exchanges. It makes companies more attractive to investors and significantly facilitates financing and IPO processes.

(8) Preferential Corporate Income Tax for Software and Integrated Circuit Industries

Qualified enterprises are exempt from corporate income tax for the first five years and subject to half the statutory tax rate of 25% for the sixth to tenth years… Nationally encouraged key integrated circuit design and software enterprises are subject to a reduced tax rate of 10% in subsequent years.

(9) Government Procurement

Products from high-tech enterprises are prioritized in government procurement systems.

(10) Additional Deductions for R&D Expenses

Enterprises can claim an additional 100% deduction for R&D expenses. For expenses that form intangible assets, an amortization of 200% of the intangible asset cost is allowed.

If you have any questions or business inquiries, please call Ms. Huang at 15513049001. We are available online to provide real-time assistance.