Application Subject

Value-added tax taxpayers.

Policy Contents

Taxpayers providing technology transfer, technology development, and related technology consulting and services are exempt from value-added tax.

Application Conditions

1. Technology transfer and technology development refer to business activities within the scope of "technology transfer" and "research and development services" as defined in the "Interpretation of Sales of Services, Intangible Assets, and Immovable Property." Technology consulting refers to business activities providing feasibility studies, technical forecasts, special technical investigations, analysis and evaluation reports, and other related services for specific technology projects.
2. Technology consulting and services related to technology transfer and technology development refer to the technical consulting and services provided by the transferor (or the entrusting party) to help the transferee (or the commissioned party) master the transferred (or commissioned for development) technology according to the provisions of the technology transfer or development contract. The payment for this part of technology consulting and services should be invoiced together with the payment for technology transfer or development.

Application Process

Taxpayers can apply for the exemption voluntarily, and relevant documents should be retained for future inspection.

Policy Basis

1. "Notice of the Ministry of Finance and the State Administration of Taxation on Extending the Pilot Program of Replacing Business Tax with Value-Added Tax" (Cai Shui [2016] No. 36).
2. "Announcement of the State Administration of Taxation on Further Optimizing the Procedures and Services Related to Value-Added Tax Preferential Policies" (Announcement No. 4 of the State Administration of Taxation in 2021).