Technology transfer qualified with the enterprise income tax (EIT) incentives must meet the requirements as follows: the transfer entity is resident enterprises as stipulated in the enterprise income tax law; and the technique transfer shall be subject to the scope as stipulated by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT).
Under the Circular on Issues Concerning the Deduction and Exemption of Enterprise Income Tax on Technique Transfer (Circular), which was released by the SAT on April 24, 2009, the qualified technology transfer incomes shall be the balance of technology transfer earnings, technology transfer costs and relevant taxation fees.
The Circular shall take effect as of January 1, 2008.
(Source: State Administration of Taxation) (June.4th 2009)