Ministry of Finance: technology business incubator, public revenue and other income are exempt from VAT.


Ministry of Finance: technology business incubator, public revenue and other income are exempt from VAT.

The Ministry of Finance issued the Notice on Tax Policy of Science and Technology Business Incubator University Science Park and Public Creative Space, which exempts the income of Science and Technology Business Incubator and Public Creative Space from VAT in 2019-2021.

Ministry of Finance promulgated "Notice on the Tax Policy of Science and Technology Park of University of Science and Technology Business Incubator and Public Creation Space". Science and Technology Business Incubator, 2019-2021.

Provinces, autonomous regions, municipalities directly under the Central Government, municipalities with separate plans, departments of finance (bureaus), science and technology (bureaus), and education (bureaus), tax bureaus of provinces, autonomous regions, municipalities directly under the Central Government and municipalities with separate plans, and financial bureaus, science and technology bureaus and education bureaus of Xinjiang Production and Construction Corps:

In order to further encourage entrepreneurship and innovation, the following tax policy announcements are made concerning the incubator of science and technology enterprises, the University Science and technology park, and the public creation space.

1. From January 1, 2019 to December 31, 2021, the state-level and provincial incubators of science and technology enterprises, University Science and technology parks and state archival public space for self-use, free or rented property and land for use by incubators are exempted from property tax and urban land use tax; and they are provided to incubators. The revenue from the incubation service is exempt from VAT.  

The term "incubation service" as mentioned in this Notice refers to the brokerage agency, business leasing, R&D and technology, information technology and certification consultation services provided to the incubators.  

2. Incubators of state-level and provincial-level science and technology enterprises, University Science and technology parks and national archival space for public creation should account for the revenue of incubation services separately.  

3. Measures for the identification and management of state-level incubators of science and technology enterprises, University Science and technology parks and national archival public creation space shall be separately promulgated by the science and technology and education departments of the State Council; and those for the identification and management of provincial incubators of science and technology enterprises and university science and technology parks shall be separately promulgated by provincial departments of science and technology and education.  

The "incubators" mentioned in this Notice refer to incubators, entrepreneurial teams and individuals who meet the requirements of the above-mentioned measures for identification and management.  

4. Incubators of state-level and provincial-level science and technology enterprises, University Science and technology parks and national archival public spaces shall declare and enjoy tax-exemption policies in accordance with the provisions, and keep the property land ownership information, original value information, lease contracts and hatching agreements for reference. Tax authorities shall strengthen follow-up management according to law.  

The incubators of state-level science and technology enterprises and university science and Technology Parks recognized before December 31, 2018 shall enjoy the preferential tax policies stipulated in this Notice as of January 1, 2019. State-level and provincial incubators of scientific and technological enterprises, University Science and technology parks and state archives established after January 1, 2019 shall enjoy the preferential tax policies stipulated in this Notice from the next month after the date of identification. Those who are disqualified after January 1, 2019 shall cease to enjoy the preferential tax policies stipulated in this Notice from the next month after the disqualification date.  

5. The departments of science and technology, education and taxation should establish information-sharing mechanisms to share timely information related to national and provincial incubators of science and technology enterprises, University Science and technology parks and national archival public space creation, strengthen coordination and cooperation, and ensure the implementation of preferential policies.  

Ministry of finance, Ministry of Taxation, Ministry of science and technology, Ministry of Education


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