XI. Foreign investors are encouraged to invest in the field of new advanced technologies, setting up R&D organs and advanced technology transfer. If foreign invested enterprises registered in Shanghai develop projects converting new advanced technological achievements with autonomous intellectual property in Shanghai , they will be refunded land use fee and land transfer fee by the municipal government within 3 years from the date of accreditation. Part of the house title deed tax for production and operation building purchase may be refunded as government allowance. Sales tax and corporate income tax which go to the local treasury for the development and sales of products will be refunded by the special fund of the financial administration within 5 years from the date of accreditation. The treatment will be half in the following 3 years. 90% of the special fund will be entitled to technical innovation of relevant enterprises and 10% will become technical innovation fund for scientific and technical enterprises for intensive use. Foreign invested enterprises are encouraged to strengthen their technical development activities. If this year's technical development cost of foreign invested enterprises increases 10% (including 10%) more than last year, foreign invested enterprises are allowed to deduct 50% of the actual technical development cost from their annual taxable income with the approval of taxation administration. The accredited foreign invested enterprises may enjoy corporate income tax of 15% with the approval of taxation administration. When R&D centers invested by foreign enterprises import self-use equipment and relevant technology and spare parts which can not be produced or suitable for requirements in China , the import tariff and value added tax can be exempted by law. When transferring technology, they are exempted from sales tax as domestic scientific research institutes. R&D centers invested by foreign enterprises are encouraged to participate in the cooperation among domestic manufacturers, universities and research institutes and the bidding of governmental scientific plans. When foreign invested enterprises, R&D centers invested by foreign enterprises, foreign enterprises and foreigners transfer technology in Shanghai , they can apply for sales tax exemption by law to taxation administration with Shanghai technology transfer certificate. Foreign invested enterprises, R&D centers invested by foreign enterprises are encouraged to hire foreign experts and their salary can be listed in the company cost.
XII. That part of tax that goes to the local treasury paid for incubating projects by a incubating base approved by relevant municipal departments shall be refunded by the financial administration to accelerate the construction of high-tech industrial development zones and incubating bases in this Municipality.
XIII. Projects brought into Shanghai by ministries and committees of the central government, other provinces and cities, students returned from abroad or foreign experts for the conversion of advanced new technological achievements and projects with autonomous intellectual property converting advanced new technological achievements shall, upon accreditation, be given equal priority in interest discount on loans and guarantees for financing. The products of such projects shall be given priority in government purchase. When technical personnel and business managers come from other provinces or cities to Shanghai to engage in the conversion of advanced new technological achievements, they and their spouses and minor children may, with the recommendation of the Shanghai Service Center for the conversion of advanced new technological achievements, move to this Municipality and have their permanent residence registered without having to pay fees for urban construction.
XIV. Scientific and technical personnel in colleges and universities and research institutions shall be encouraged to start high-tech enterprises or engage in the conversion of advanced new technological achievements as a concurrent occupation. The units to which such personnel belong should continue to provide them with research and lab facilities for application research and product development. Scientific and technical as well as administrative personnel from colleges and universities and research institutions who leave their posts to start high-tech enterprises or engage in the conversion of advanced new technological achievements may retain their employment relationship with their original units. Scientific and technical as well as administrative personnel who start high-tech enterprises or engage in the conversion of advanced new technological achievements as a concurrent occupation or who leave their posts to engage in such activities should abide by the agreements with their original units and keep their commercial and technical secrets. If they need to use the commercial and technical secrets of their original units or other persons, they should sign a contract with their original units or other persons for permission or assignment to use such secrets.
XV. Accredited projects converting advanced new technological achievements should apply timely for patents if they qualify for patents and may properly be protected by patents. When an institution, enterprise or an individual in this Municipality applies for patents of invention both at home and abroad, the Municipal Intellectual Property Bureau shall help pay part of the application fee and patent retention fee.
XVI. An evaluation committee shall be set up to assess the qualifications of scientific and technical personnel in the field of the conversion of advanced new technological achievements for higher professional titles. This committee shall be responsible for the assessment of the qualifications of engineering and technical personnel, business personnel, administrative personnel as well as personnel engaged in intermediary service and organization who have made contributions in the conversion of advanced new technological achievements. Those who have distinguished themselves in the conversion of advanced new technological achievements may be awarded corresponding professional titles by waiving conventional constraints. A Shanghai personnel cultivation fund shall be set up to help high-tech industries to bring in talent, personnel and help chief implementers engaged in the conversion of advanced new technological achievements to settle special difficulties. Scientific and technical personnel who have made outstanding achievements in the conversion of advanced new technological achievements shall be given priority in the recommendation to the Ministry of Personnel to be awarded the title of middle-aged and young experts who have made outstanding contributions to the country and be granted a government allowance. "Outstanding Service Prize of Shanghai Municipality in Science and Technology" shall be chiefly awarded to scientific and technical personnel who have made outstanding achievements in the conversion of advanced new technological achievements and people who implement the industrialization of advanced new technological achievements.
XVII. I f a government-sponsored product development or research project fails to convert conscientiously its achievements within the prescribed period of time, the government grant to the team and to the executor of the project shall be temporarily suspended . Scientific and technological achievements that fall in the category of application research and product development but have not reached the phase of actual application shall not be accepted for appraisal or nominated for prizes at the municipal level.
XVIII. The district/county governments and the relevant departments of the Municipal Government may formulate detailed rules for the implementation of these Provisions. In case the policies previously promulgated by this Municipality regarding the conversion of advanced new technology conflict with these Provisions, these Provisions shall prevail. Provisions of Shanghai Municipal Government on Promoting the Conversion of New Advanced Technological Achievements |
