This year, technology business incubators are exempt from three-year VAT
The Ministry of Finance, the State Taxation,Administration, the Ministry of Science and Technology and the Ministry of Education jointly issued a notice to clarify the tax incentives for technology business incubators, university science parks, and mass maker space to further encourage innovation and entrepreneurship.
The notice is clear that from January 1, 2019 to December 31, 2021, The property and land self-used by the state-level and provincial-level technology business incubators, university science parks, and national mass maker spaces or free of charge through renting providing for the incubatee are exempt from property tax and urban land use tax; the income from the incubation service provided to the incubatee is exempt from VAT.
The notification said that the incubation service refers to the brokerage agency, operating lease, research and development and technology, information technology and identify consulting services provided for the incubatee. The notice stipulates that national and provincial technology business incubators, university science parks and national mass maker space should separately account for the income of incubation services.
The notice requires that the science, technology, education and taxation departments should establish an information sharing mechanism to timely share state-level and provincial-level technology business incubators, university science parks and national mass maker spaces-related information, strengthen coordination and cooperation, and ensure that preferential policies are in place.
