Issued by: Shanghai Municipal Bureau of Finance, State Taxation Administration Shanghai Tax Bureau, Shanghai Municipal Commission of Economy and Informatization
Issue No. Hucaifa (2024) No. 12
Release Date: December 31, 2024
Effective Date: January 1, 2025
Links: https://shanghai.chinatax.gov.cn/zcfw/zcfgk/qysds/202501/t474880.html

In July 2020, the Ministry of Finance and the State Taxation Administration jointly issued the Notice on Corporate Income Tax Policies for Key Industries in China (Shanghai) Pilot Free Trade Zone Lin-Gang Special Area (Caishui (2020) No. 38), stating that enterprises in key industries such as integrated circuits, artificial intelligence, biomedicine, and civil aviation in Lin-Gang Special Area, will be taxed at a reduced corporate income tax rate of 15% within 5 years from the date of establishment.
This revision optimizes and refines some of the implementation standards and provisions of the original Administrative Measures. It ensures that enterprises must meet the following basic conditions to be recognized as eligible for corporate income tax preferences:    
1. Registered in Lin-Gang Special Area and in operation for less than 5 years (excluding enterprises relocated from other areas to Lin-Gang Special Area);

2. Engaged in integrated circuits, artificial intelligence, biomedicine, civil aviation industries, and the main business belongs to the key fields of the catalogue stipulated in Caishui (2020) No. 38;

3. Conducting substantial production or research and development activities in Lin-Gang Special Area;

4. At least one key product (technology) is included in the enterprise's main research and development or sales products;

5. The conditions on the entity and its R&D production must meet the relevant regulations of Caishui (2020) No. 38.