Circular of the Ministry of Finance and State Administration of Taxation Concerning Relevant Tax Policies on the Development of Startup Investment Enterprises

Circular of the Ministry of Finance and State Administration of Taxation Concerning Relevant Tax Policies on the Development of Startup Investment Enterprises

Cai Shui [2007] No. 31

February 7, 2007

The finance departments (bureaus) of each province, autonomous region, municipality, city specifically designated in the plan, State Administration of Taxation, local taxation bureau, Finance Bureau of Xinjiang Production and Construction Corps:

By carrying out the Circular concerning Printing and Distribution of Several Supporting Policies of the National Outlines for Medium and Long-term Planning for Scientific and Technological Development (2006-2020) of the State Council (Guo Fa [2006] No. 6) together with the Interim Administrative Measures for Venture Capital Investment Enterprises (Order No. 39 of the National Commission of Development and Reform and other 9 departments, hereafter referred to as the Measures) in order to support the development of startup investment enterprises, the following is hereby the Circular on tax policies:

I. In case a startup investment enterprise has invested in any small or medium unlisted new and high-tech enterprise by way of equity investment for 2 or more years, 70% of the amount of investment in the small or medium unlisted new and high-tech enterprise may be deducted from the taxable amount of the startup investment enterprise if it satisfies the following conditions:
1.
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