Notice of the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation on Matters Concerning the Compilation of the List of Industrial Machine Tool Enterprises Enjoying the Super Deduction Policy for R&D Expenses in 2024 (MIIT Communication [Year] No. 64)
To the Industrial and Information Technology Departments, Development and Reform Commissions, and Finance Departments (Bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, cities with separate planning status, and the Xinjiang Production and Construction Corps; and to the State Taxation Administration's tax bureaus in all provinces, autonomous regions, municipalities directly under the Central Government, and cities with separate planning status:
In accordance with the relevant provisions of the "Announcement of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission, and the Ministry of Industry and Information Technology on Increasing the Deduction Ratio for R&D Expenses of Integrated Circuit and Industrial Machine Tool Enterprises" (Announcement No. 2023 of Year 44), to facilitate the formulation of the list of industrial machine tool enterprises eligible for the R&D expense deduction policy for year 2024, the following notice is issued:
1. Industrial machine tool enterprises eligible for the enhanced deduction under this notice must meet all of the following conditions:
(1) Industrial machine tool enterprises that manufacture and sell advanced industrial machine tools, key functional components, and CNC systems (collectively referred to as "advanced industrial machine tool products"; see Attachment "Basic Standards for Advanced Industrial Machine Tool Products" in Announcement No. 2023 of 44 issued by the Ministry of Finance, State Administration of Taxation, National Development and Reform Commission, and Ministry of Industry and Information Technology).
(2) For the 2024 application period, enterprises must have at least 15% of their average monthly workforce composed of R&D personnel engaged in advanced industrial machine tool product research and development under labor contracts, dispatched labor arrangements, or employment agreements.
(3) The total amount of R&D expenses for the enterprise in 2024 shall account for at least 5% of its total sales (operating) revenue (the sum of main business revenue and other business revenue, hereinafter referred to as such).
(4) For the 2024 fiscal year, enterprises applying for preferential policies must have revenue from advanced industrial machine tools produced and sold in accordance with this notice account for no less than 60% of their total sales (operating) revenue, and their total revenue must be at least 3000 ten thousand yuan (inclusive).
2. Enterprises applying to be included in the list must log in to the system by 2025-3-31, select "Industrial Machine Tool Enterprise R&D Expense Super-Deduction Policy Application Portal" to submit their application, and generate a hard copy stamped with the enterprise seal. This document, along with necessary supporting materials (both electronic and hard copies), shall be submitted to the local industry and information technology departments of provinces, autonomous regions, municipalities directly under the Central Government, and cities divided into districts, as well as the Xinjiang Production and Construction Corps (hereinafter referred to as local industry and information technology departments). Enterprises already listed in the 2023 list who wish to apply for inclusion in the 2024 list must resubmit items 2, 3, 6, and 8 from the "List of Submission Materials for Industrial Machine Tool Enterprises Enjoying R&D Expense Super-Deduction Policies" (see attachment). For any other items that have changed, please submit them as well.
3. Local industry and information technology departments shall log in to the system to preliminarily verify enterprise declaration information based on the eligibility criteria outlined in Article 1 of this notice, and submit the list of enterprises that have passed preliminary verification to the Ministry of Industry and Information Technology by 4/15. For enterprises that do not pass preliminary verification, the reason for rejection must be recorded in the system.
4. The Ministry of Industry and Information Technology (MIIT) will engage third-party agencies to review eligibility based on enterprise submissions. Following the review, MIIT, in coordination with the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration, will conduct a joint assessment and finalize the list, taking into account enterprises in key areas of the industrial machine tool industry chain. Enterprises may query their inclusion status in the information submission system after 5/10.
5. Companies included in the list may self-assess their eligibility when filing the annual prepayment of enterprise income tax and, if eligible, immediately claim the preferential treatment. During the annual tax reconciliation, if a company is not included in the 2025 year's list, it must pay any additional tax due in accordance with regulations, but no late payment surcharge will be imposed.
6. Local industry and information technology departments shall work with development and reform, finance, and tax authorities to strengthen routine supervision of enterprises on the list according to their respective responsibilities. If false information is found used by an enterprise to obtain tax reduction or exemption eligibility during supervision, a joint investigation shall be conducted promptly, and the findings reported jointly to the Ministry of Industry and Information Technology for verification. The Ministry of Industry and Information Technology will coordinate with the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration to review cases. For enterprises confirmed as ineligible, their eligibility to enjoy the policy benefits will be revoked, and they will be barred from applying for these preferential policies for three years.
7. The enterprise is responsible for the authenticity of all submitted materials and data. Declaring enterprises must sign a commitment letter, pledging to accept disciplinary action from relevant authorities in accordance with laws, regulations, and national policies if any dishonest conduct is found during the declaration process.
Notice hereby.
Ministry of Industry and Information Technology
National Development and Reform Commission
Ministry of Finance
State Taxation Administration
2025-3-5
Attachment: Industrial Mother Machines Eligible for R&D Expense Super Deduction Policy
Enterprise Submission Checklist
1. Duplicate copy of the Enterprise Legal Person Business License, enterprise qualifications, and honor certificates (including but not limited to certifications for High-Tech Enterprises, National Specialized and New "Little Giant" Enterprises, Manufacturing Single Champion Enterprises, etc.).
2. Provide an explanation of the total number of enterprise employees, their educational structure, the total number of R&D personnel, and the total number of personnel engaged in advanced industrial machine tool product development. Include the ratio of these R&D personnel to the average monthly workforce (covering those under labor contracts, dispatched labor agreements, or employment contracts). Attach a list of all personnel involved in the declared product development projects. All materials must be itemized, explained, and stamped with the official company seal. 2024. For the application of preferential policies, submit proof of social insurance payments for all employees as of the last month of the year (including payment receipts for social insurance contributions made on behalf of dispatched personnel), along with other supporting documentation.
3. Enterprise financial accounting reports for the 2024 fiscal year, prepared by a qualified intermediary agency (including financial statements, notes to financial statements, and financial condition explanation), along with explanations regarding sales revenue from advanced industrial mother machines and R&D expenses. If sales revenue from advanced industrial mother machines is not reflected in the financial accounting reports, the enterprise shall calculate it independently and affix its official seal. R&D expenses shall be aggregated according to the guidelines specified in Caishui [Year 2015] Document No. 119 and State Taxation Administration Announcement No. 40 of Year 2017, with separate disclosure in the accounting report. If such disclosure is not feasible, a special audit report or tax certification report on R&D expenses calculated based on the aforementioned guidelines must be provided.
4. Up to 10 representative utility model or invention patent documents directly related to the declared product, developed or owned by the enterprise.
5. Technical parameter certification documents proving the declared product meets the key technical requirements of the "Basic Standards for Advanced Industrial Mother Machine Products" listed in Annex 2023 to Announcement No. 44 by the Ministry of Finance, State Taxation Administration, National Development and Reform Commission, and Ministry of Industry and Information Technology (must be issued by a third party; self-certification by the enterprise is invalid).
Copy of the 6.2024 sales contract with the largest order volume for up to 10 declaration products (must be a sales contract for the declaration product itself; contracts for other products are invalid).
7. One to two representative user reports for the declared product.
Commitment that no major safety incidents, major quality accidents, or serious environmental violations occurred in 8.2024 (template available for download under "Form Download Materials" on the left side of the page).
9. Provide documentation proving the enterprise's establishment of innovation platforms closely related to the declared product, such as engineering laboratories, key laboratories, engineering technology research centers, postdoctoral workstations, or enterprise technology centers. Include the platform name, supervising ministry, and level (national or provincial).
10. Within the past 10 years, provide de-identified proof of up to 10 representative provincial-level or higher R&D projects undertaken by your enterprise that are directly relevant to the product being declared. Each project must include: project name, project number, funding amount, commissioning organization, and level (national or provincial).
List of enterprise-led or participating product standard formulation and revision cases (up to 11.10 entries; template download available in "Form Filling Materials" on the left side of the page).
12. Award certificates for the declared product.
13. Certificate of Maturity Assessment for Machine Tool Equipment / Mechanical Foundation Equipment Manufacturing.
14. Other documents required by local departments of industry and information technology, development and reform, finance, or tax authorities.
Note: All copies of supporting documents must bear the company's official seal. For initial applications, items 1 through 8 are mandatory.