China Unveils New Tech Tax Incentives for 2026-2030

New Policy Framework for Innovation

Beijing, China – China has officially announced a new series of tax incentives aimed at bolstering its science and technology sector, effective from January 1, 2026, through December 31, 2030. The announcement, made on February 21, 2026, by a joint statement from the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration, underscores the nation's commitment to fostering innovation and popularizing scientific advancements. These measures are integral to China's 15th Five-Year Plan (2026-2030), which prioritizes high-level sci-tech self-reliance and the development of new quality productive forces.

Import Tax Exemptions for Sci-Tech Popularization

A key component of the newly introduced incentives focuses on the popularization of science and technology. Under the new policy, eligible science and technology popularization institutions will benefit from exemptions on import tariffs and import-linked value-added taxes. This applies to specific goods that are crucial for educational and outreach efforts. These eligible goods include:

• Popularization films and videos
• Equipment that 'cannot be produced domestically'
• Equipment whose domestic versions 'fail to meet required performance standards'

Institutions such as science and technology museums and natural history museums are among those designated to receive these tax benefits, facilitating their access to advanced foreign materials and technologies for public engagement.

Broader R&D Incentives and Strategic Goals

Beyond the popularization efforts, China's overarching strategy for the 2026-2030 period includes broader tax support for research and development. While specific details for the new period are being finalized, recommendations within the 15th Five-Year Plan suggest an expansion of R&D tax deductions for technology firms. Experts anticipate that the additional R&D deduction rate for high-tech enterprises and small technology firms could increase to as much as 200 percent. The general rate for all companies may also see an increase from 100 percent to between 120 percent and 150 percent.

These incentives build upon existing policies, such as the 100% additional deduction rate for eligible R&D expenses (or 200% for intangible assets), which was consolidated as a long-term policy from January 1, 2023. Furthermore, the High and New Technology Enterprise (HNTE) status continues to offer a reduced corporate income tax rate of 15 percent, significantly lower than the standard 25 percent. The comprehensive package of incentives aims to strengthen original innovation, achieve breakthroughs in core technologies, and promote the deep integration of scientific and industrial innovation, aligning with China's strategic vision for technological leadership and self-sufficiency.