As stipulated by the just issued favorable policy of enterprise income tax, a favorable 15% income tax will be applicable to hi-tech enterprises ratified by relevant bureaux in hi-tech industry development zones approved by the State Council. For newly established hi-tech enterprises ratified by relevant bureaux, the income tax is exempted for two years since the date of production. For those ratified by ZSP, the income tax is exempted for three years since the date of incorporation, and a halved tax rate is applicable from the fourth to the sixth year.

In addition, for the incomes of research institutes and universities and colleges through technological achievement trading, technical training, technical consulting and contraction, the income tax is exempted for the time being. (Source: China Electronics News)