The Ministry of Finance and the State Administration of Taxation issued a notice a few days ago to clarify that the resident company's transfer of six types of technology can enjoy the enterprise income tax exemption policy. The circular stipulates that resident companies will not enjoy the preferential policies on corporate income tax reduction for technology transfer from the technology transfer income obtained by the affiliate whose equity is directly or indirectly held up to 100%. Circulars will be implemented as of January 1, 2008.
The notification clearly stated that the scope of technology transfer includes the transfer of patented technology, computer software copyrights, integrated circuit layout design rights, new plant varieties, new biomedical products, and other technologies identified by the Ministry of Finance and the State Administration of Taxation. Among them, patented technology refers to inventions, utility models, and designs that do not simply change the product design.
The term "technology transfer" as mentioned in the Circular means that a resident enterprise transfers its ownership of the technology in compliance with the above-mentioned provisions or acts more than 5 years (including 5 years) of the global monopoly license.
The notice stipulated that technology transfer should sign a technology transfer contract. Among them, the domestic technology transfer must be certified by the provincial or above (including provincial) science and technology department, and the cross-border technology transfer must be certified by the provincial or above (including provincial) commercial department, which involves the transfer of financial support technology. It needs the approval of provincial and higher-level science and technology departments.

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