Beijing’s Application Period for High Tech Enterprise Status Ends for 2009
Beijing's application period for companies wishing to obtain high tech tax concessions ended on Monday. Hwuason lawyers comments on their experience of this years applications.
Beijing, China, November 19, 2009 --(PR.com)-- The application period for companies wishing to obtain high-tech enterprise status in Beijing ended on Monday 16 November 2009 meaning that companies wishing to obtain such status will now need to wait until late March 2010 to make an application. The preferential treatment for high-tech enterprises is one of the remaining incentives under China’s new tax regime. Enterprises that obtain high technology status are entitled to a preferential corporate income tax rate of 15%, which is substantially lower than China’s ordinary 25% corporate tax rate.
Under the new tax regime, the requirements obtain high tech status have been made more difficult. As a result, 2009 saw a large amount of high tech applications in Beijing as companies needed to reapply to ensure they satisfied the new requirements. Liu Tianyong, Managing Partner of Hwuason Lawyers, China’s first specialist tax law firm, commented that this year ‘many companies that previously made such applications themselves sought professional advice for fear of being rejected. Some companies were in fact rejected first and then came to us to reapply. In all cases we were, fortunately, able to help them to have high tech status approved’. In respect of the marked increase in applications this year, Liu noted that his firm made ‘around 85 applications’ in Beijing alone this year.
For those companies that missed the deadline, they will be happy to hear that applications will open again soon in March next year.
About Hwuason. Hwuason Lawyers was the first specialist tax law firm in China. A commitment to combining tax and legal services distinguishes Hwuason from other tax advisors. The firm offer clients an alternative to the 'big 4' accounting firms, both in terms of costs and the breadth of services provided, which includes M&A, tax controversy, cross-border and general tax.
For more information about Hwuason: www.hwuason.com
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Under the new tax regime, the requirements obtain high tech status have been made more difficult. As a result, 2009 saw a large amount of high tech applications in Beijing as companies needed to reapply to ensure they satisfied the new requirements. Liu Tianyong, Managing Partner of Hwuason Lawyers, China’s first specialist tax law firm, commented that this year ‘many companies that previously made such applications themselves sought professional advice for fear of being rejected. Some companies were in fact rejected first and then came to us to reapply. In all cases we were, fortunately, able to help them to have high tech status approved’. In respect of the marked increase in applications this year, Liu noted that his firm made ‘around 85 applications’ in Beijing alone this year.
For those companies that missed the deadline, they will be happy to hear that applications will open again soon in March next year.
About Hwuason. Hwuason Lawyers was the first specialist tax law firm in China. A commitment to combining tax and legal services distinguishes Hwuason from other tax advisors. The firm offer clients an alternative to the 'big 4' accounting firms, both in terms of costs and the breadth of services provided, which includes M&A, tax controversy, cross-border and general tax.
For more information about Hwuason: www.hwuason.com
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Hwuason Lawyers
Matthew McKee
8610 58697282
www.hwuason.com
Matthew McKee
8610 58697282
www.hwuason.com
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