Chapter I General Provisions

Article 1 The Measures for the Administration of High-tech Enterprise Accreditation (hereinafter referred to as the Measures) has been formulated to support and promote the development of high-tech enterprises, in accordance with the relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax (hereinafter referred to as the Law of Enterprise Income Tax) and the Regulation on the Implementation of the Law of the People's Republic of China on Enterprise Income Tax (referred to as the Regulation on the Implementation).

Article 2 The term 'high-tech enterprises' in the Measures refers to the resident enterprises registered in the Chinese mainland (excluding those registered in Hong Kong SAR, Macao SAR, and Taiwan) that are included in the High-tech Fields Supported by the State and also engage in ongoing research and development (R&D) and commercialization of technological achievements. These enterprises must also have established core independent intellectual property rights and conduct their business operations accordingly.

Article 3 The administration of high-tech enterprise accreditation shall follow the principles of supporting enterprises in making major contributions to innovation, encouraging technological innovation, and implementing dynamic management measures, while upholding the principles of fairness and impartiality.

Article 4 The accredited high-tech enterprises are eligible to apply for and enjoy preferential tax policies in accordance with the relevant provisions of the Law of Enterprise Income Tax and the Regulation on Implementation, the Law of the People's Republic of China on the Administration of Tax Collection (referred to as the Law of the Administration of Tax Collection) and the Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection (referred to as the Rules for the Implementation).

Article 5 The Ministry of Science and Technology, Ministry of Finance, and State Taxation Administration of the People's Republic of China shall take responsibility for the guidance, management and supervision of high-tech enterprise accreditation across China.

Chapter II Organization and Implementation

Article 6 The Ministry of Science and Technology, Ministry of Finance, and State Taxation Administration shall collaborate to form a national leading group for the administration of high-tech enterprise accreditation (referred to as the "Leading group"). The Leading group's main responsibilities are as follows:

(I) Establish the overall direction for the administration of high-tech enterprise accreditation and review reports on the administration of high-tech enterprise accreditation;

(II) Coordinate and resolve significant challenges related to the administration of accreditation and the implementation of relevant policies;

(III) Adjudicate major disputes arising in the administration of high-tech enterprise accreditation, supervise and inspect the administration of accreditation in different regions, and provide guidance for the rectification of any issues identified.

Article 7 An office under the Leading group, of which the personnel are from the Ministry of Science and Technology, Ministry of Finance, and State Taxation Administration, is set at the Ministry of Science and Technology. The main responsibilities of this office are as follows:

(I) Submit reports on the administration of high-tech enterprise accreditation and propose recommendations for the improvement of policies based on research;

(II) Provide guidance on the administration of high-tech enterprise accreditation in different regions, supervise and inspect the accreditation process, and offer suggestions for rectification and resolution of identified issues;

(III) Manage the filing of records concerning the administration of high-tech enterprise accreditation in different regions, publicize the list of accredited enterprises, and issue the certificate numbers of eligible enterprises after verification;

(IV) Establish and moderate the Website for the Administration of High-tech Enterprise Accreditation;

(V) Undertake additional tasks assigned by the Leading group.

Article 8 The science and technology administrative departments in provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state's social and economic plan, as well as the financial departments and taxation departments at the same level, shall jointly establish local institutions responsible for the administration of high-tech enterprise accreditation (hereinafter referred to as the "accreditation institutions"). Each of these accreditation institutions shall has an office set up within the science and technology administrative department of the corresponding province, autonomous region, municipality directly under the Central Government, or city specifically designated in the state's social and economic plan, comprising relevant personnel from the local science and technology, finance and taxation departments. The main responsibilities of an accreditation institution are as follows:

(I) Be in charge of the high-tech enterprise accreditation within its administrative region and submit its regional report on the administration of high-tech enterprise accreditation to the office of the leading group on an annual basis;

(II) Report accredited high-tech enterprises to the office of the leading group as required for filing purposes and issue high-tech enterprise certificates to those that complete the filing process;

(III) Be in charge of the selection of experts (including technical and financial experts) to participate in the accreditation process and enhance its supervision and management;

(IV) Supervise and inspect the accredited enterprises, receive, verify, and review applications and relevant reports, and implement the rectification suggestions proposed by the leading group and its office;

(V) Undertake additional tasks assigned by the office of the leading group.

Article 9 The validity of the certificate issued to an accredited high-tech enterprise shall be three years from the date of issuance.

Article 10 After being accredited as a high-tech enterprise, the enterprise concerned will be eligible for preferential tax policies starting from the year in which its high-tech enterprise certificate is issued. The enterprise will then be able to go through all necessary procedures at the local tax authority to enjoy preferential tax policies in accordance with the provisions of Article 4 of the Measures.

Chapter III Accreditation Conditions and Procedures

Article 11 For an enterprise to be accredited as a high-tech enterprise, the following conditions must be simultaneously met:

(I) The enterprise has been registered and established for more than one year at the time of application.

(II) The enterprise possesses ownership of intellectual property rights which serve as core technical support for its main products (services). The ownership of these intellectual property rights may have been acquired through such means as independent R&D, transfer, donation, or mergers and acquisitions (M&A).

(III) The technologies serving as core technical support for the enterprise's main products (services) shall fall within the High-tech Fields Supported by the State.

(IV) The number of scientific and technological personnel engaged in R&D activities and relevant technical innovation within the enterprise shall account for no less than ten percent of its total number of employees for that year.

(V) The ratio of the enterprise's total R&D expenses in the previous three fiscal years (or actual period of operation, if the enterprise has been operating for less than three fiscal years; the same rule applies below) to its total sales revenue for the same period shall meet the following criteria:

1. For enterprises with sales revenue of up to 50 million yuan (inclusive) in the most recent year, the proportion shall be no less than five percent.

2. For enterprises with sales revenue between 50 million yuan and 200 million yuan (inclusive) in the most recent year, the proportion shall be no less than four percent.

3. For enterprises with sales revenue exceeding 200 million yuan in the most recent year, the proportion shall be no less than three percent.

In addition, of the enterprise's total R&D expenses, at least 60 percent shall be allocated to domestic R&D activities in China.

(VI) The ratio in the most recent year of the enterprise's revenues generated by high-tech products (services) to its total revenues for the same period shall be no less than 60 percent.

(VII) The appraisal of the enterprises' innovation capability shall meet the relevant requirements.

(VIII) The enterprise has not experienced any major safety or quality accidents, or committed serious environmental violations, in the past year prior to accreditation application.

Article 12 The high-tech enterprise accreditation procedures shall be as follows:

(I) Application by enterprises

The enterprise shall carry out self-evaluation in accordance with the Measures. Enterprises that consider themselves eligible shall complete the registration process on the Administrative Website for High-tech Enterprise Accreditation. After registration, they can proceed to apply for accreditation by submitting an application to the relevant accreditation institution. The following materials shall be provided when submitting application:

1. Application Letter for High-tech Enterprise Accreditation;

2. Registration certificates demonstrating the legal establishment of the enterprise;

3. Intellectual property right-related materials, scientific research project approvals, and materials concerning commercialization of scientific and technological achievements and organization and management of R&D, and other relevant materials

4. Materials concerning the key technologies and technical specifications related to the enterprise's high-tech products (services), production permits, accreditation and qualification certificates, product quality inspection reports, and other relevant materials;

5. Explanatory materials regarding the enterprise's employees and scientific and technological personnel;

6. Special audit or authentication reports issued by qualified intermediary organizations indicating the enterprise's R&D expenses in the three previous fiscal years, and revenues from high-tech products (services) in the most recent fiscal year, together with explanatory materials on these R&D activities;

7. Financial and accounting reports for the enterprise for the three previous fiscal years authenticated by qualified intermediary organizations (including financial statements, notes to the financial statements, and statements of financial situation);

8. Annual enterprise income tax return forms for the three previous fiscal years.

(II) Expert review

The accreditation institution shall form an expert group for the review by random selection of eligible experts. The expert group shall review the application materials submitted by the enterprise and provide review comments and suggestions.

(III) Examination of accreditation

The accreditation institution shall conduct a thorough examination of the applicant. This examination shall consider the comments and suggestions provided by the expert group. The accreditation institution shall also present accreditation opinions to the office of the leading group. The office of the leading group shall then publish the accredited enterprise's information on the Administrative Website for High-tech Enterprise Accreditation for a period of ten working days. If no objections are raised, the accreditation shall be filed and officially announced on that website. The accredited enterprise will receive a High-tech Enterprise Certificate issued by the accreditation institution and printed in a unified form. In case any objections are raised, the accreditation institution shall verify and address them accordingly.

Article 13 After obtaining high-tech enterprise accreditation, the enterprise shall be required to complete and submit an Annual Development Status Report by the end of May each year through the Administrative Website for High-tech Enterprise Accreditation. The report shall include information on intellectual property rights, scientific and technological personnel, R&D expenses, operating revenues, and other relevant details for the previous year.

Article 14 For enterprises dealing with confidential information, the accreditation process shall be carried out in accordance with applicable national regulations on confidentiality. The accreditation process shall be carried out on the premise of ensuring the security of confidential information.

Chapter IV Supervision and Management

Article 15 In order to strengthen supervision and inspection of the high-tech enterprise accreditation and administration work in different localities, the Ministry of Science and Technology, the Ministry of Finance and the State Taxation Administration shall establish a mechanism for random spot checks and targeted inspections. Accreditation institutions with identified problems shall be required to address these problems within a specified timeframe based on the relevant rectification opinion. In cases of major problems, the supervision and management authority will circulate a notice of criticism to the accreditation institution, and its accreditation work may be suspended if it fails to undertake the necessary rectification within the given timeframe.

Article 16 If relevant departments discover that an accredited high-tech enterprise no longer conforms with the accreditation conditions during routine management, they will have the authority to request that it be re-examined by the accreditation institution. If it is confirmed that the enterprise no longer conforms with the accreditation conditions, the accreditation institution shall revoke its high-tech enterprise qualification, and notify the tax authorities. The tax authorities shall recover any tax benefits enjoyed by the enterprise since the year it became ineligible.

Article 17 Any high-tech enterprise undergoing a change in name or significant changes relevant to the accreditation conditions (such as corporate division, merger, reorganization, or changes in business operations) shall report these changes to the accreditation institution within three months. If, after examination by the accreditation institution, the enterprise still conforms with the accreditation conditions, its qualification as a high-tech enterprise shall remain unchanged. In the case of a name change, a new accreditation certificate shall be issued with the same certificate number and validity period. However, if the enterprise no longer conforms with the accreditation conditions, its qualification as a high-tech enterprise shall be canceled from the year in which the name change or condition change occurred.

Article 18 If a high-tech enterprise relocates entirely to a locality administered by a different accreditation institution, its qualification as a high-tech enterprise shall remain valid as long as the relocation is completed within the validity period of its high-tech enterprise accreditation. However, if a high-tech enterprise relocates only partially to a locality administered by a different accreditation institution, it shall be required to undergo accreditation procedures with the new locality's accreditation institution, following the guidelines set out in the Measures.

Article 19 Qualification as a high-tech enterprise shall be revoked by the accreditation institution if the accredited enterprise engages in any of the following acts:

(I) Having serious fraudulent behavior during the accreditation application process;

(II) Having major safety or quality accidents, or severe violations of environmental regulations;

(III) Failure to report major changes related to the accreditation conditions within the designated timeframe, or failure to submit the Annual Development Status Report for two consecutive years.

If the high-tech enterprise qualification of an enterprise is revoked, the accreditation institution shall instruct the tax authorities to recover any preferential tax benefits enjoyed by the enterprise since the year in which the aforementioned acts occurred, in accordance to the Tax Administration Law and relevant regulations.

Article 20 All institutions and personnel involved in the accreditation of high-tech enterprises have an obligation to act in good faith, comply with the relevant regulations, and maintain confidentiality. Those who violate the requirements and disciplines related to high-tech enterprise accreditation will be subject to the appropriate disciplinary actions and sanctions.

Chapter V Supplementary Provisions

Article 21 The Ministry of Science and Technology of the PRC, the Ministry of Finance of the PRC, and the State Taxation Administration have formulated Guidelines for the Administration of High-tech Enterprise Accreditation in accordance with the Measures.

Article 22 The Ministry of Science and Technology of the PRC, the Ministry of Finance of the PRC, and the State Taxation Administration shall be responsible for the interpretation of the Measures.

Article 23 The Measures shall be implemented from January 1, 2016. The previous Measures for the Administration of High-tech Enterprise Accreditation (Guo Ke Fa Huo [2008] No.172) shall be simultaneously abolished.

Attachment: High-Tech Fields Supported by the State

I. Electronic information

II. Biology and new medicines

III. Aerospace

IV. New materials

V. High-tech services

VI. New energy and energy conservation

VII. Resources and the environment

VIII. Advanced manufacturing and automation