China to give land tax breaks to technology incubation and innovation centres as part of broad policy drive
- The new policies come at the time when China is seeking to lift the country’s industries up the value chain
China will implement land tax exemptions for centers of technology incubation and innovation next year, as part of a broader move by Beijing to transform the country’s economy from factory of the world to a global tech powerhouse.
State- and provincial-level technology business incubators, university science parks and co-working innovation labs, will all enjoy land tax exemptions in the three years from 2019 to 2021, according to a joint statement last week from the China Ministry of Finance, State Administration of Taxation, China Ministry of Science and Technology as well as China Ministry of Education. Income from services and innovations generated by the centres will also be exempt from value-added tax.
The new policies come at the time when China is seeking to lift the country’s industries – from robotics and aerospace to new materials and new energy vehicles – up the value chain, replacing imports with local products and building global champions able to take on Western giants in cutting-edge technologies.
Chinese President Xi Jinping announced plans for a new equity bourse in Shanghai to help technology companies raise capital during his opening speech at the China International Import Expo on Monday. He also pledged more liberalisation to drive the world’s second-largest economy through a combination of innovation and capital.
“In the long run, the creation of the technology board on the Shanghai exchange will help build the city into China’s technological innovation centre,” Xi said.
