CIT Reduction for Lingang New Are (Airport-Economic-Area) of Shanghai

Prescribe Criteria

An enterprise that meets the qualifications for reduction corporate income tax must meet the following conditions at the same time:

1. Registered in the new area since January 1, 2020 and less than 5 years (excluding enterprises that have moved into the new area from outside areas)
2. The main business is a corporate enterprise engaged in substantive production or R&D activities in related fields in the “Catalog of Core Links in Key Fields of Integrated Circuits, Artificial Intelligence, Biomedicine, and Civil Aviation in New Areas” (hereinafter referred to as “Catalog”)
3. Substantive production or R&D activities refer to the fact that the company has fixed production and business premises, fixed staff, and has the software and hardware support conditions that match the production or R&D activities, and carries out related businesses on this basis.
4. Engaged in the integrated circuit, artificial intelligence, biomedicine, and civil aviation industries, and the main business belongs to the “New Area Integrated Circuits, Artificial Intelligence, Biomedicine, and Civil Aviation Core Links Catalogue” stipulated in Caishui ²⁰²⁰ No. 38 “Scope.
5. Carrying out substantive production or research and development activities in the new area.
6. The company’s main R&D or sales products include at least one key product (technology).
7. Key products (technology) refer to products (technology) that play an important role or indispensable in the industrial chain of key fields such as integrated circuits, artificial intelligence, biomedicine, and civil aviation.
8. The conditions for the main body of enterprise investment and the conditions for enterprise R&D and production shall be implemented in accordance with the relevant provisions of Caishui ²⁰²⁰ No. 38.

Must meet one of the following conditions:

1. Enterprise investment subject conditions:
1. Enterprise investment entities rank in the forefront of the influence of the international market segments, and the technical strength is in the forefront of the industry
2. The main body of corporate investment is in a leading position in the domestic market segment, and its technical strength is in the leading position in the industry.
2. Enterprise R&D and production conditions:
1. The company has leading talents and core team backbones, and has long been engaged in scientific research and production in related fields at home and abroad.
2. The company has core key technologies and has the ability to establish an independent intellectual property system for its main products.
3. The company has the ability to promote the diversification of core suppliers in the industry chain and to promote the upgrading of domestic industries.
4. The company has high-end supply capabilities, and its core technical indicators have reached the forefront of the world or domestically.
5. The company’s research and development results (technology or products) have been adopted by international and domestic first-line terminal equipment manufacturers or have carried out close substantive cooperation (including capital, scientific research, projects, etc.)
6. The enterprise obtains national or provincial government technology or industrialization special funds, government investment funds, or obtains investment from well-known investment and financing institutions.

Procedures for Qualification

1. The High-tech Industry and Technological Innovation Division of the Lingang New Area Administrative Committee combines the focus of annual industrial development and technological innovation work to compile and issue a notification of certification declaration according to procedures, clarifying specific requirements such as declaration time and acceptance methods. Enterprises that meet the requirements of the notification notice can make the declaration within the specified time, and the declaration enterprise must be responsible for the authenticity, compliance and legality of the declaration materials.
2. According to the annual declaration confirmation notice issued by the Lingang New Area, the enterprise applies online through the legal person one-pass login system, fills in relevant information and uploads relevant materials as required, and accepts and approves in accordance with “no run once” and “no meeting” The principle of “online” declaration throughout the entire process.
3. The town governments, development companies, parks and other units are responsible for pre-checking the application materials of enterprises, focusing on reviewing the application qualifications of the applying enterprises, the consistency and completeness of the application materials, and giving pre-review suggestions.
4. Lingang New Area Investment Promotion Service Center (Science and Technology Innovation Development Center) is responsible for the preliminary verification of the enterprise application materials, focusing on reviewing the detailed information of the application materials, the on-site survey, and the re-checking of the project, and giving preliminary review suggestions.
5. The High-tech Industry and Technological Innovation Division of the Lingang New Area Management Committee is responsible for organizing the review or comprehensive assessment of enterprise applications.
6. The High-tech Industry and Technology Innovation Division of the Lingang New Area Management Committee entrusts a qualified third-party organization or relevant technical and financial experts to review and evaluate the company’s application and certification in accordance with the principle of “openness, fairness and justice”. It can be conducted by means of material review, meeting review, on-site inspection, etc. and provide relevant conclusion reports, etc.
7. According to the review and evaluation, the list of R&D and innovation institutions in the Lingang New Area will be determined through the joint review meeting of high-tech industries and technological innovation projects, and the approval procedures.

Materials Required for Qualification

1. Business license
2. Effective certification documents for carrying out substantive production or R&D activities (such as project filing documents in the new area, land or business site use, lease certificates, environmental assessment filing materials, etc.).
3. Relevant certification materials that meet the requirements of Article 4 of these Measures (such as technical level certification documents, enterprise management capabilities certification documents, etc.).
4. A statement that the declaring enterprise is responsible for the authenticity of the content of the materials and accompanying documents for the declaration of tax preference eligibility, and the letter of authorization for corporate credit inquiry, etc.
5. Other related materials.