What Financial Support and Tax Preferential Policies can be enjoyed for Patent Application?

Nowadays, the State and local governments have issued serious financial support and tax preferential policies to encourage innovation of patents.

I. Financial Support Policies

Firstly, from the perspective of the State, the Chinese applicants applying to the State Intellectual Property Office (SIPO) for patents can enjoy the policy of reduction or postponement of the payment of the patent fee. The relevant expenses include the application fee (excluding printing expense and surcharge), substantive examination fee of the invention and 3 years’ annual fees from the year when the patent right is granted. On the other hand, for the Chinese applicants applying for patents overseas, they can obtain the financial support to the extent of certain amount, which includes the official fee of application for foreign patent, retrieval expense paid to patent retrieval organization, service expenses paid to the agency and so forth.

Second, except for the national financial support, the local governments also offer various financial support policies to the local applicants. For example, in Shanghai, for the applicants applying for a patent, whether domestic or overseas, they can obtain general financial support, to some extent, involving certain proportion and amounts of the application fee, annual fee and agency fee. Particularly, the eligible patent pilot and model enterprises and institutions should be provided special financial support.

It shall be noted that the examination and approval is a precondition to the financial support mentioned above. Hence, the patent applied for shall be satisfied with specified requirements. Currently, the regulations related to financial support mainly covers the Patent Charging Standards of the State Intellectual Property Office, Measures for Administration of Special Funds Supporting Application for Patent Overseas, Shanghai Municipality Measures for Financial Support of Patent (2012 revised) and so on. 

Now, generally, an applicant being satisfied with specified requirements can be provided the national financial support, as well as local financial support.

II. Tax Preferential Policy

At present, the approached tax preferential policy is mainly embodied in identification of a high technology enterprise. A high technology enterprise applies the enterprise income tax rate 15% (25% is applied to other enterprises except for high technology enterprises); however, an enterprise must own a certain amount of patents when applying for identification of a high technology enterprise.

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Author

Gao Shaoyi

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