China’s Innovation Incentives

Innovation is at the core of China’s current development plans. “Made in China 2025” and the 13th Five Year Plan (2016-2020) set out to steer the economy away from mass manufacturing and unsustainable industries, through technologically driven growth.


The foreign companies we support share mixed views on what this innovation push will mean for their business in China. Since the ultimate goal of ‘Made in China 2025’ is to make China’s own industry competitive in new and high-tech sectors, its policies often favour domestic and foreign companies asymmetrically.


Since 2015, when Made in China 2025 was launched, China has been strengthening its tax incentive programs to encourage the development of new knowledge, products, and processes among domestic and foreign enterprises alike. These incentives offer an opportunity for innovation-driven foreign companies to generate savings and value. Yet the opportunity is often foregone due to a lack of understanding of available programs, their requirements, and how to meet them.


Below is an overview of three tax incentive programs available for foreign and domestic enterprises: The Advanced Technology Service Enterprise (ATSE) Status, the R&D Super Deduction, and the High and New Technology Enterprise (HNTE) Status.



Applying for HNTE Status: A Step-by-Step Guide

Certified High and New Technology Enterprises (HNTEs) in China can benefit from a reduced Corporate Income Tax rate of 15%, as opposed to the standard 25%. Below is a step-by-step guide on how to apply. If you need further support, or wish to assess your company’s eligibility for other tax incentives – such as the R&D Super Deduction –please contact our experts at

Get in touch with Fiducia’s tax professionals at for support in assessing your company’s eligibility for tax reductions, preparing a successful application, and ensuring compliance.