INNOVATE IN CHINA

Turn your R&D and technology investment into available incentives.

China continues to use tax incentives, enterprise qualifications and targeted support programs to encourage innovation, advanced manufacturing, software, integrated circuits, artificial intelligence and other strategic technologies.

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For qualifying companies, the benefits can be significant — but the rules are technical, documentation-heavy and often depend on how the company’s R&D activities, personnel, intellectual property and financial records are structured.

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OPING helps companies assess whether they qualify, prepare the application, organize the supporting documentation and maintain the compliance framework required to keep the benefits.

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The current incentive framework

Several major tax incentives remain important for innovative companies in China.

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High and New Technology Enterprise (HNTE)
Qualifying high-tech enterprises may benefit from a reduced 15% corporate income tax rate, compared with the standard 25% rate.

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R&D super deduction
For qualifying R&D expenditure, companies may generally claim an additional 100% tax deduction on eligible expenses, or amortize qualifying intangible assets at 200% of cost.

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Technology development and transfer
From 2026 to 2027, qualifying technology transfer, technology development and related consulting and technical services may benefit from VAT exemption.

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Software and integrated circuit incentives
China continues to offer preferential corporate income tax treatment and other incentives for qualifying software and integrated circuit companies, with 2026 application procedures and qualifying lists remaining active.

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Advanced manufacturing incentives
Qualifying advanced manufacturing enterprises may benefit from a VAT additional deduction of 5% of deductible input VAT through 2027, subject to qualification requirements.

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AI is now an important part of the opportunity

Shanghai is actively supporting AI development and application.

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In 2026, Shanghai launched programs supporting AI companies and users through computing-power vouchers, model/token vouchers and data-corpus vouchers, covering areas such as large models, agents, embodied intelligence, autonomous driving, scientific AI, finance, education, healthcare and other sectors.

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Shanghai’s Lingang New Area also continues to offer preferential treatment for qualifying companies engaged in core areas including artificial intelligence, integrated circuits, biomedicine and civil aviation, subject to specific qualification requirements.

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For foreign-invested technology companies, this creates an important opportunity: incentives are no longer limited to traditional manufacturing or laboratory R&D. AI development, software, digital products, advanced services and technology commercialization may also qualify for different forms of support depending on the business model and location.

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We focus on companies that have a real chance of qualifying

OPING does not believe every company should apply.

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Before accepting an engagement, our specialist team reviews the company’s:

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• technology and products

• intellectual property

• R&D activities and projects

• R&D personnel

• financial and accounting records

• revenue composition

• existing tax treatment

• corporate structure

• available supporting documentation

 

We then identify which qualifications and incentives are realistic and commercially worthwhile.

 

Our services include

• High and New Technology Enterprise qualification

• HNTE renewal and ongoing compliance

• R&D super-deduction support

• Software enterprise incentives

• Integrated circuit-related incentives

• Advanced manufacturing incentives

• Technology contract registration and VAT incentives

• AI-related incentive and subsidy programs

• R&D project and expenditure documentation

• Intellectual property and technical documentation review

• R&D audit support

• Internal R&D management and compliance improvement

• Coordination with relevant authorities

• Ongoing monitoring of new incentive programs

 

Experienced team. Practical government knowledge.

OPING has an experienced specialist team focused on technology and R&D incentives, with many years of practical experience working with the relevant government authorities and understanding how applications are evaluated.

We help clients do more than submit forms. We help organize the underlying R&D, financial and technical evidence so the application is credible, defensible and sustainable.

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Success-based approach

We succeed when you succeed.

For selected companies that we believe are strong candidates, OPING can work on a success-based professional fee structure.

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That means our interests are aligned with yours.

If we believe you have a credible case, we are confident enough in our work to share the risk.

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Why OPING

Since 2002, OPING has helped foreign-invested companies navigate China’s legal, tax, regulatory and business environment.

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Our innovation team combines technical application experience, tax knowledge, R&D documentation expertise and practical familiarity with the authorities responsible for these programs.

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Our objective is simple: identify the incentives you genuinely qualify for, maximize the value available, and help you maintain the compliance needed to keep them.

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