The State Administration of Taxation (SAT) of China issued a bulletin which states that revenues from technical advice, technical services and technical training, in relation to technology transfers will be included under the enterprise income tax (EIT) treatment of income from technology transfers.
Bulletin 62, dated 21 October 2013, states that income from the transfer of technology, technical advice, technical services and technical training is included as income from the transfer of technology if it meets the following criteria:
• if the transfer of technology relating to technical consulting, technical services and technical training is included in the technology transfer contract; and
• if revenues from technical advice, technical services and technical training are received in conjunction with income from technology transfers.
The Bulletin became effective from 1 November 2013.
