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Preferential policies to boost entrepreneurship and innovation

( chinadaily.com.cn ) 2016-09-09

Preferential tax policies should be used to create a new driving force for mass entrepreneurship and innovation, Premier Li Keqiang stressed at the State Council executive meeting on Oct 21, 2015.

The meeting decided to improve a tax deduction policy to encourage enterprises' research and development efforts. More activities will be eligible under the policy. Enterprises will be able to claim a tax deduction for any research and development efforts they have undertaken in the past three years, with the review process for the deductions sped-up and streamlined.

In addition, a preferential income tax policy piloted in innovation demonstration zones will be expanded to the whole country.

The Premier said that this series of preferential tax policies will motive greater scientific research and push for greater levels of innovation. A large number of research institutions and universities are state-owned and these policies can help revitalize more creativity, the Premier said.

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