I. A project accrediting system for new advanced technological achievements conversion is carried out in Shanghai and a special organization is established to assess matters such as technical rating, market prospect, project risk and intellectual property status for projects developed in Shanghai or converted by new advanced technological achievements introduced home and abroad. Legal or natural entity may apply for new advanced technological achievements conversion project accreditation according to Shanghai new advanced industry and technology catalog issued by Shanghai municipal government. The accredited new advanced technological achievements conversion projects shall enjoy preferential treatment provided by the Provisions. The accredited achievements conversion projects in software, integrated circuit, modern biological technology and Chinese traditional medicine industry shall also enjoy preferential treatment provided by the Provisions and the relative industrial policies.
II . The Shanghai municipal government shall set up a Shanghai service center for new advanced technological achievements conversion. The center providing "one-door" service shall be in charge of the organization of the accreditation of new advanced technological achievements conversion projects and the organization of the relevant administration for the approval, industrial and commercial registration, taxation registration and the implementation of preferential policies for these projects. The center shall also be responsible for cultivating and guiding intermediary service organization engaged in the conversion of scientific and technological achievements, collecting and publicizing scientific and technological information in the application fields, popularizing domestic and foreign scientific and technological achievements conducting information exchange between the industries, universities and research institutes, building channels for the communication between the circles of science an( technology and those of industry and finance, nuturing new advanced technological enterprises to be listed in the home and abroad stock market. Shanghai technological property exchange will be set up as the professional and profitable capital market to serve the whole nation and connect the world. Shanghai technological property exchange will provide property trading and stock financing services to scientific and technological projects, enterprises and growing enterprises. The municipal and district (county; governments shall set up a special fund to pay interest discounts on loans and provide guarantees for financing the accredited new advanced technological achievements conversion projects. Accredited new advanced technological achievements conversion projects shall hold priority in the list of the municipal technical innovation projects and enjoy special support in capital investment and discount on loan interest.
III . Home and abroad capital (including private capital) are encouraged to build business-starting investment organs. The approved business-starting investment companies may use their whole capital to invest. The minimal registration capital requirement for business-starting investment companies registered in Shanghai is 30 million RMB and is 1 million RMB for business-starting investment management companies registered in Shanghai . If Shanghai-registered business-starting investment invest over 70% of their total outward investment in the accredited new advanced technological achievements conversion projects, new advanced technological enterprises or government-supported scientific and technological plans and industrialized projects, they can enjoy local preferential policies as the new advanced technological enterprises.
IV. New advanced technological achievements can be invested as intangible assets into conversion projects. Their value may account for up to 35% of the registered capital. If there are specific provisions agreed on by the parties to the cooperation about the percentage, such provisions shall be followed. The companies shall be exempted from registration fees by the administration. (unless otherwise stipulated by the government ) When new advanced technological achievements are invested as intangible property, their value shall be assessed by a qualified property assessment agency. Or their value may be agreed on by the investors after consultation and set down in a written agreement binding on both parties. With the assessment report or investor's agreement, the companies can finish their registration process.
V. The government shall refund the land use fees and the rents for leasing land within 3 years upon the accreditation of a project converting new advanced technological achievements. The transaction fees for purchasing housing for production and business and the property rights registration fees shall also be exempted. Part of the house title deed tax may be returned as government allowance. And such projects shall be exempted from the fees for augmenting the volume of running water, drainage, gas and power supply in the process of construction. The sales tax and corporate income tax of a project converting advanced new technological achievements as well as that part of value-added tax which goes to the local treasury shall be specially refunded by the financial administration during the first 3 years after accreditation. In the following 2 years, 50% of such taxes shall be refunded. The sales tax and corporate income tax of an accredited projects with autonomous intellectual property converting high and new technological achievements as well as that part of value-added tax which goes to the local treasury shall be specially refunded by the financial administration during the first 5 years after accreditation. In the following 3 years, 50% of such taxes shall be refunded. Of the above-mentioned refund, 90% shall be paid to the enterprise for technical innovation and 10% to the technical innovation fund for intensive use. For units and individuals, income from the technical transfer, development and the relevant consulting and service of projects converting new advanced technological achievements are exempted from sales tax.
VI. If the achievements are converted through official work, the accomplisher may get the corresponding stock options, revenues or bonus according to converting methods. If the conversion is made through stock share, the accomplisher can acquire no less than 20% of the stock shares the achievement accounts for. If the conversion is made by other people through technical transfer, the accomplisher can enjoy no less than 20% of the net income after income tax. Enterprises, research institutes and universities, which make the conversion autonomously or cooperatively, may take no less than 5% of the net profit after tax from the achievement to encourage the accomplisher within 3 to 5 years since the projects making profit. Enterprises can annually take no less than 10% of the after- tax net profit from the conversion achievements, which shall be autonomously developed by the enterprises in the field of their non-dominating business, to encourage the accomplisher within 3 to 5 years since the projects making profit. The accomplisher making extraordinary contributions will be encouraged with special fund arranged by the financial administration with municipal government's approval. In order to stimulate the executives and major technical personnel, scientific and technological enterprises are encouraged to trying "stock options and futures".
VII. Technology and management expertise are allowed and encouraged to participate in the distribution process of the revenue. There will be some pilot new advanced technological enterprises. When caning out corporate restructuring, the above enterprises may take no more than 35% of the added value from the past 3 year's net state-owned asset as shares to encourage the staff who make contributions, in particular, the technical personnel and the management.
VIII. A company established with an accredited project converting advanced new technological achievement shall not be restrained by its total wages. Its board of directors may decide autonomously upon the standard of wages for its employees with reference to the market labor prices and the guidelines published by the government for wage increases. A11 the wages paid out may be listed as cost. The salaries, drawn in Shanghai , of students returned from abroad who engage in the conversion of advanced new technological achievements may be regarded as income from abroad and may go by the stipulations of the additional deduction of the cost besides the deduction of the prescribed cost upon the calculation of the personal income tax to be paid.
IX. As for enterprises registered in Shanghai and paying corporate income tax (foreign-invested enterprises included) that have invested after-tax profits made after January 1, 1997 in an accredited project converting advanced new technological achievements and formed or augmented the capital of the enterprise, that part of corporate income tax collected which corresponds to the amount of investment and goes to the local treasury shall be refunded to the enterprise in the following year on condition that the term of the contract of investment exceeds 5 years. If the technical personnel engaged in the conversion of new advanced technological achievements invest their relevant income into the accredited projects or enterprises converting new advanced technological achievements, their investment amount which correspond to the corporate income tax going to the local treasury will be refunded by the special fund in the following year.
X. Enterprises are encouraged to increase their fund for technical development. The cost for purchasing special and key piloting and testing equipments and instruments to develop new technologies and products may be listed in the corporate cost with the approval of municipal financial and taxation administration. |
