The State Administration of Taxation issued an announcement in connection to to the reduction and exemption of Enterprise Income Tax on income deriving from technology transfers. According to this announcement, the income derived from technology consulting, technology services and technology training that can be calculated as technology transfer fees (thus being either exempted from, or benefit from a reduction of, the Enterprise Income Tax) should they meet the following conditions: (1) such services are stipulated in the contract for technology transfer; and (2) the earnings deriving from such services are collected together with the technology transfer fees. The announcement will enter in effect from November 1st, 2013.

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