High-and-New Technology Enterprise (“HNTE”) in Mainland China is a status granted to those resident enterprises that are actively engaged in research and development (“R&D”), technological innovation, and the transformation of scientific and technological achievements within the key high-tech fields supported by the national government. These enterprises are recognized for their significant contributions to technological advancement and economic development.

Tax Benefits

HNTEs enjoy numerous tax incentives in Mainland China. The most significant tax benefit is the reduced corporate income tax rate of 15%, which is 10% lower than the standard rate. Besides, losses of qualified HNTEs that occur five years prior to the year in which they become qualified are allowed to be carried forward to subsequent years of up to 10 years. 

Application Process

To be qualified as HNTEs, enterprises need to fulfill certain criteria and submit a comprehensive application package to the HNTE accreditation authorities. The required documents typically include the enterprise's business license, intellectual property right certificate or other relevant certification materials, R&D staff and expenses details and financial statements, etc. The authorities will review the application and, if the enterprise meets the criteria, grant the HNTE status.

The application process can be complex, and it is recommended that enterprises seek professional advice and assistance to ensure that their application is compliant with the relevant regulations.

Our Services

We offer a range of services to assist enterprises in their journey towards obtaining HNTE status. We help our clients to understand the criteria and requirements, assist in self-evaluation to be conducted by the enterprise before the application, prepare the application form and supporting documents, liaise with the authorities during the process in order to obtain HNTE status successfully.

Furthermore, we provide ongoing services to HNTEs, for example, assisting in filing of statement on annual development, including information about intellectual property rights, R&D personnel and expenditures and revenue, etc. HNTEs should continue to be compliant with the relevant criteria and requirements, otherwise the authorities will revoke the HNTE status.