Results of High and New Technology Enterprise Status Verification Announced
Tax Analysis:November 16, 2015/China
China’s Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation recently published the results of inspections conducted in 2014 in eight provinces and municipalities that focused on verifying the status of high and new technology enterprises (“HNTEs”) (Circular Guokefahuo  No. 299). (Tax Analysis:November 16, 2015/China)
The inspections were designed to identify enterprises that had been classified as HNTEs and were benefiting from incentives granted to HNTEs, but that failed to meet the requirements for HNTE status. Of the 1,723 enterprises inspected, 166 were found to be in violation of relevant rules, and 42 of these enterprises were disqualified as HNTEs.
This newsletter explains the the following topics:
(2) Overview of the 2014 inspections
(3) Deloitte’s comments
(4) Deloitte's recommended steps
The China Tax Desk offers a wide range of advisory and other services tailored to suit each client’s needs to resolve various tax issues faced in its Chinese business. We work in close collaboration with Deloitte China to support Japanese companies operating in China.