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Opinions on the Promotion of the Development of Bioindustry

Source: hubei.gov.cn

Hubei provincial party committee and government promulgated the Opinions on the Promotion of the Development of Bioindustry in January 2011, which makes specific provisions for implementing the "Green Channel" system of investment projects, strengthening the support for project land use and vigorously attracting foreign investment to promote the agglomeration and development of small and medium enterprises.

As stipulated in the Opinions, to implement national preferential taxation policies, focus should be placed on the implementation of such preferential policies as deduction and exemption of income tax of high-tech and venture capital enterprises as well as the acceleration of depreciation.

As for the biotechnology enterprise's expenditures on the research and development of new technology, process and product which are not recorded in the current profits and losses as intangible assets, a super-deduction of 50 percent of the research and development expenditures shall be made after deductions of actual and reasonable cost and expense as specified; In case intangible assets are formed, it shall be amortized based on 150 percent of the cost of intangible assets.

For biotechnology enterprises which are identified as high-tech enterprises, the income tax shall be reduced to 15 percent according to the tax law. For instruments and equipment applied by biotechnology enterprises in the research and development with a unit price under 300,000 Yuan, the amount may be included in the costs at one time or several times; For those ones with a unit price of above 300,000 Yuan, the double declining balance method or sum of the years' digits method may be adopted to accelerate the depreciation. This way, enterprises can actually enjoy these national preferential taxation policies to support the development of the bioindustry.