The Shanghai Municipal Commission of Commerce, the Shanghai Municipal Bureau of Finance, Shanghai Customs, and the Shanghai Municipal Tax Service of the State Taxation Administration have released a notice on import tax policies for equipment used by foreign-funded research and development centers during the 15th Five-Year Plan period, outlining eligibility criteria, application procedures, and regulatory requirements.

I. Reviewing authorities

The Shanghai Municipal Commission of Commerce, the Shanghai Municipal Bureau of Finance, Shanghai Customs, and the Shanghai Municipal Tax Service of the State Taxation Administration (hereinafter referred to as the "reviewing authorities") are responsible for assessing the eligibility of foreign-funded R&D centers seeking to benefit from the tax exemption policy for imported equipment.

II. Eligibility criteria

Eligibility shall be determined in accordance with the "Conditions for Foreign-Funded R&D Centers to Benefit from the Policy", as set out in Annex 1 of Document No 8 [2026] jointly issued by the Ministry of Finance, the State Taxation Administration, and the General Administration of Customs (Cai Guan Shui [2026] No 8).

III. Application deadlines

(I) The period for submitting application materials for 2026 runs from the date of issuance of this notice to May 31, 2026.

(II) For the years 2027 to 2030, the application submission period is from Jan 1 to March 31 of each year.

IV. Application materials

Foreign-funded R&D centers applying for tax exemption for imported equipment must submit the following materials (each bearing the company's official seal and submitted in four copies):

(I) Original Application Form for Tax Exemption Eligibility for Equipment Imported by Foreign-funded R&D Centers (including basic information of the foreign-funded R&D center, R&D activities, and an explanation of compliance with application conditions) and the original Review Form for Tax Exemption Eligibility for Equipment Procured by Foreign-funded R&D Centers;

(II) If the foreign-funded R&D center is an independent legal entity, submit a copy of the business license. If the foreign-funded R&D center is an internal department, submit a copy of the business license of the foreign-funded enterprise to which it belongs. If the foreign-funded R&D center is a branch, submit a copy of the branch's business license;

(III) Copies of the latest capital verification report and the audit report for the previous year of the foreign-funded R&D center. If the foreign-funded R&D center is not an independent legal entity, such as an internal department or branch of a company, submit the latest audit report, the original list of assets invested specifically for the establishment and construction of the R&D center, and copies of relevant purchase invoices or contracts;

(IV) Original Summary Table of Cumulative Equipment Procured by Foreign-funded R&D Centers and a detailed list, along with corresponding copies of supporting documents: customs import declaration forms, customs special payment receipts (for imported equipment), purchase invoices, and purchase contracts (referring to signed purchase contracts for domestic and imported equipment, under which the equipment will be delivered before the end of the year of application for eligibility assessment). Mark the upper right corner of the attached documents with a numerical code, which should correspond to the serial number of the equipment name in the Summary Table of Equipment Procured;

(V) Original Letter of Commitment from the foreign-funded R&D center regarding signed purchase contracts for imported equipment, with the equipment to be delivered before the end of the year of application for eligibility assessment;

(VI) Original Roster of Full-Time Research and Experimental Development Personnel of the foreign-funded R&D center;

(VII) Original Letter of Commitment from the foreign-funded R&D center assuming legal responsibility for the authenticity and validity of all submitted materials;

(VIII) Other materials required by the reviewing authorities.

V. Application and review process

(I) Within the specified time each year, the foreign-funded R&D center shall complete the application through the "Suishendui" (随申兑) window on the Government Online-Offline Shanghai (上海一网通办) platform, and submit the paper application materials to the service hall of the Shanghai Municipal Commission of Commerce (1st Floor, Building 5, No 300, Shibocun Road).

(II) The reviewing authorities will review the materials separately and notify the foreign-funded R&D center to supplement the materials (if necessary). The foreign-funded R&D center shall submit four copies of the supplemented materials to the notified location.

(III) For foreign-funded R&D centers whose application materials do not require supplementation, the reviewing authorities will review them within 45 working days after the deadline for submitting materials. For foreign-funded R&D centers whose application materials need to be supplemented, the reviewing authorities will review them within 45 working days after the application materials are fully supplemented. The reviewing authorities will publish the list of foreign-funded R&D centers that have passed the review on the website of the Shanghai Municipal Commission of Commerce in the form of an announcement. The Shanghai Municipal Commission of Commerce will inform Shanghai Customs of the verification results by letter, copy the letter to the Shanghai Municipal Bureau of Finance and the Shanghai Municipal Tax Service, and report the results to the Ministry of Commerce.

VI. Supervision and management

(I) For import duties and taxes that have been levied but should be exempted as stipulated in Document No 8 [2026] (Cai Guan Shui [2026] No 8), a refund will be granted upon application by the foreign-funded R&D center, and interest calculated at the bank demand deposit rate for the same period will be refunded in accordance with the law. If input VAT deductions have not been claimed for imported goods on which tax has been levied, a Statement of Undeducted Input VAT on Imported Goods under the Preferential Import Tax Policy for Supporting Scientific and Technological Innovation during the 15th Five-Year Plan Period issued by the competent tax authority shall be obtained in advance.

(II) If the foreign-funded R&D center undergoes changes such as to its name or business scope, it shall promptly report the changes to the Shanghai Municipal Commission of Commerce within the effective period of Document No 7 [2026] (Cai Guan Shui [2026] No 7). The Shanghai Municipal Commission of Commerce will, in accordance with the review process stipulated in Section V of this notice, verify whether, after the change, the foreign-funded R&D center can continue to benefit from the policy from the date of change registration, and indicate the date of change registration. The Shanghai Municipal Commission of Commerce will inform Customs of the verification results (if there is a high volume of verification results, they will be sent in at least two batches each year), copying the Shanghai Municipal Bureau of Finance and the Shanghai Municipal Tax Service, and reporting to the Ministry of Commerce.

(III) Foreign-funded R&D centers shall use duty-free imported goods in accordance with relevant regulations. If they violate the regulations by transferring duty-free imported goods, using them for other purposes, or otherwise disposing of them without authorization, they will be punished in accordance with relevant regulations and will be suspended from benefiting from the policy for the duration of Document No 7 [2026] (Cai Guan Shui [2026] No 7).

(IV) If a foreign-funded R&D center obtains duty-free eligibility by falsely reporting information, the Shanghai Municipal Commission of Commerce will verify the matter and inform Customs. From the date of the notification, the foreign-funded R&D center will be suspended from benefiting from the policy for the duration of Document No 7 [2026] (Cai Guan Shui [2026] No 7), and taxes will be recovered on the previously tax-exempt imported equipment, with other measures taken in accordance with relevant regulations.

This notice is valid from Jan 1, 2026, to Dec 31, 2030.

Note: The English text is for reference only. In the event of any discrepancy, the Chinese version shall prevail.

Source: Shanghai Municipal Commission of Commerce