Zhuhai, China, October 12, 2015 – Maxcess China have received approvals from relevant PRC authorities for the renewal of their respective “High and New-Technology Enterprise” (“HNTE”) status.
Mr. Robert Liu, General Manager of Maxcess China, commented, “We are pleased that Maxcess China has successfully renewed the HNTE status, pursuant to which the applicable Income Tax(CIT) rate for years 2015, 2016 and 2017 will be 15%, as compared to the statutory 25% income tax rate. We anticipate that the extra income tax expenses accrued will be reversed as tax and be benefit to our cash flow in the future years. The renewal recognizes our R&D efforts and reflects years of operation as a high-tech company. ”
It was extremely difficult to enterprises to achieve HNTE status in China. Few of them can pass the certification of HNTE, and fewer can pass re-supervision. Only 313 of the 200000 enterprises have received approvals from relevant PRC authorities on 2015 in Guangdong, one of the strongest economic province of China. Maxcess China is the only one in Zhuhai Free Trade Zone.
Once an enterprise is certified as a HNTE, it may apply the tax incentives under the CIT Law and regulations, including the reduced 15 percent CIT rate(versus the standard 25 percent tax rate), regardless of the company’s investment type and where the company is headquartered. HNTE status is granted by provincial tax authorities for company facilities located within those provinces. In addition, the HNTE designation make enterprises eligible to apply for other benefits as well, including government support, enhancing brand awareness, importing talents and promoting project biddings. Generally, the HNTE certificate is valid for three years once it has been approved and can be renewed every three years.
Maxcess China passed the first certification of High and New-Technology Enterprises on November 2012.