In order to encourage scientific research and technological development, and promote scientific and technological progress, domestic research and development institutions and foreign-funded research and development centers will continue to purchase domestic equipment in full refund of value-added tax. The relevant matters are hereby announced as follows:

1. Domestic R&D institutions and foreign-funded R&D centers that apply the policy of full refund of value-added tax for purchasing domestic equipment include:

(a) the Ministry of Science and Technology in conjunction with the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation approved in the course of the reform of the science and technology system into enterprises or into enterprises mainly engaged in scientific research and technology development;

(2) National Engineering Research Center approved by the National Development and Reform Commission jointly with the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation;

(3) Enterprise technology centers approved by the National Development and Reform Commission jointly with the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation and the Ministry of Science and Technology;

(4) State key laboratories (including State key Laboratories for enterprises) and State Engineering research centers approved by the Ministry of Science and Technology jointly with the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation;

(5) All kinds of research institutes engaged in scientific research approved by the Ministry of Science and Technology of the ministries and commissions under The State Council and institutions directly under The State Council, as well as all kinds of research institutes engaged in scientific research approved by the science and technology departments of provinces, autonomous regions, municipalities directly under the central government and cities independently listed under the plan;

(6) Private non-enterprise scientific and technological units approved by the Ministry of Science and Technology jointly with the Ministry of Civil Affairs, or by the science and technology competent departments of provinces, autonomous regions, municipalities directly under the Central Government, separately planned cities and Xinjiang Production and Construction Corps jointly with the civil affairs departments at the same level;

(7) The national SME public service demonstration platform (technology) approved by the Ministry of Industry and Information Technology jointly with the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation;

(8) Institutions of higher learning with academic qualifications recognized by the State implementing college education or higher education (subject to the list published on the portal website of the Ministry of Education);

(9) Foreign-funded R&D centers that meet the requirements of Article 2 of this Announcement;

(10) Other scientific research institutions, technological development institutions and schools approved by the Ministry of Finance jointly with relevant departments under The State Council.

2. Foreign-funded R&D centers shall meet the following conditions:

(a) Research and development expenses standard: as an independent legal person, its total investment is not less than 8 million US dollars; As a non-independent legal person of the company's internal department or branch, its total investment in research and development is not less than 8 million US dollars.

(2) No less than 80 full-time research and experimental development personnel.

(3) The original value of the equipment purchased since the establishment is not less than 20 million yuan.

The foreign R&D center shall be subject to qualification examination and verification by the competent department of commerce jointly with the relevant departments in accordance with the above conditions. See Annex 1 for detailed examination and verification methods.

3. Approved domestic research and development institutions and foreign-funded research and development centers shall not enjoy tax refund policies if major tax-related illegal and dishonest acts occur. Specific measures for the administration of tax refund shall be formulated separately by the State Administration of Taxation jointly with the Ministry of Finance. The leading approval department of the relevant research and development institutions shall promptly notify the tax authorities at the same level of the new establishment, change and cancellation list of the domestic research and development institutions and foreign research and development centers, and indicate the start and end time of the relevant qualifications.

4. Relevant definitions of this announcement:

(1) The "total amount of investment" mentioned in this announcement refers to the amount specified in the foreign investment information report receipt or enterprise approval certificate or establishment and change filing receipt issued or issued by the competent commercial department.

(2) The "total investment in R&D" mentioned in this announcement refers to the assets invested by foreign-invested enterprises specifically for the establishment and construction of the R&D center, including the assets to be invested and the purchase contract to be signed (the list of purchased assets and the contract list of assets to be purchased shall be submitted).

(3) The "annual expenditure of R&D funds" mentioned in this announcement refers to the average annual expenditure of R&D funds in the past two fiscal years; If it is less than two complete fiscal years, it may be calculated on the basis of the actual R&D expenditure for any consecutive 12 months since the establishment of the foreign-funded R&D center; The investment in cash and physical assets shall not be less than 60%.

(4) The term "full-time research and test development personnel" mentioned in this announcement refers to the personnel engaged in basic research, applied research and test development project activities of the enterprise full-time, including the personnel directly participating in the above three types of project activities and the relevant full-time science and technology management personnel and the direct service personnel who provide materials, documents, materials supply and equipment for the project. The above personnel shall sign a labor contract for more than 1 year with the foreign-funded R&D center or the foreign-invested enterprise where they work, and the number of employees shall be determined on the day before the application is submitted by the foreign-funded R&D center.

(5) "Equipment" mentioned in this Announcement refers to experimental equipment, devices and instruments that provide necessary conditions for scientific research, teaching and scientific and technological development. When calculating the total value of the equipment purchased, the original value of the imported equipment and the purchased domestic equipment shall be taken into account together, including the equipment that has been signed and delivered within the year (the purchase contract list and the delivery deadline shall be submitted), and the above-mentioned purchased domestic equipment shall belong to the equipment listed in the List of Scientific and Technological Development, Scientific research and Teaching Equipment in this announcement (see Annex 2). If there is any objection to the implementation of the scope of Chinese-made equipment, the competent tax authorities shall report it to the State Administration of Taxation for approval by the Ministry of Finance.

5. This announcement shall be implemented until December 31, 2027, and shall be implemented from the first day of the next month when domestic R&D institutions and foreign-funded R&D centers obtain tax refund eligibility.

It is hereby announced.

Annex: 1. Measures for the verification and identification of the tax refund qualification for the purchase of domestic equipment by foreign-funded R&D centers

2. List of scientific and technological development, scientific research and teaching equipment

General Administration of Taxation, Ministry of Finance and Commerce

August 28, 2023