1. R&D Expense Super-Deduction Policy

R&D expense super-deduction is one of the core tax incentives available to technology-based SMEs upon certification. Under current regulations, R&D expenses incurred by such enterprises that do not result in intangible assets and are recognized as current-period expenses may be deducted based on actual costs plus an additional deduction of 100% of those expenses before tax. For expenses resulting in intangible assets, a pre-tax amortization allowance of 200% of the asset's cost is permitted.

This policy covers expenses incurred for systematic activities with clear objectives that enterprises continuously carry out to acquire new knowledge in science and technology, creatively apply new scientific and technological knowledge, or substantially improve technologies, products (services), or processes. Specifically, the following R&D expenses are eligible for additional deduction:

• Personnel Costs: Wages, basic endowment insurance, basic medical insurance, unemployment insurance, work-related injury insurance, maternity insurance, and housing provident fund for personnel directly engaged in R&D activities.
• Directly incurred expenses: Costs for materials, fuel, and power directly consumed by R&D activities, as well as costs for developing and manufacturing molds, process equipment, and tools used in intermediate trials and product prototyping.
• Depreciation expense: depreciation of instruments and equipment used for R&D activities.
• Intangible Asset Amortization: Amortization expenses for intangible assets used in R&D activities, such as software, patents, and non-patented technologies.
• New product design fees, fees for establishing new process regulations, and other expenses directly related to R&D activities.

Companies claiming the additional deduction must maintain auxiliary accounts for R&D expenses and accurately accumulate and account for them. Tax authorities may verify the authenticity and reasonableness of these expenses during subsequent management, so companies must ensure proper daily record-keeping.

II. Corporate Income Tax Incentives

Qualified technology-based small and medium-sized enterprises enjoy the following corporate income tax incentives:

• Extension of loss carryforward period:Starting from 2018, qualified technology-based small and medium-sized enterprises may carry forward losses incurred in the 5 years prior to the qualification year for future offset. The maximum carryforward period has been extended from 5 years to 10 years. This is particularly important for tech companies with high upfront investments and long profit cycles.
• Low-tax rate transition:If an enterprise also qualifies as a small low-profit enterprise, it may additionally benefit from the corresponding tax incentives. For taxable income up to 300 million yuan, only 25% shall be included in the taxable amount, and corporate income tax shall be levied at a rate of 20%.

III. VAT-related Support

Although the certification of science and technology-based small and medium-sized enterprises does not directly reduce VAT rates, VAT support may be available in the following scenarios:

• VAT is exempted on income from technology development, technology transfer, and related technical consulting and technical services.
• Software products meeting the eligibility criteria are subject to a refund of VAT paid on the portion exceeding 3% of the actual tax burden.
• Accelerated depreciation policies may apply to research and development equipment that meets eligibility criteria, indirectly reducing the time cost of input VAT deductions.

4. Local Fiscal Subsidies and Incentives

The Inner Mongolia Autonomous Region and its prefectures offer differentiated fiscal support for technology-based small and medium-sized enterprises:

Region	Subsidy/Reward Content	Notes
Hohhot	One-time incentive of 5-10 thousand yuan for newly certified technology-based SMEs	In accordance with the annual science and technology plan
Baotou City	Receive a 10 million yuan bonus for your first inventory entry, plus an additional reward for maintaining eligibility for three consecutive years.	Must be approved by the municipal science and technology department.
Ordos City	Up to 20 thousand yuan subsidy for cultivating technology-based SMEs	Focus on new energy and new materials sectors.
Chifeng City	Technology Innovation Vouchers have a maximum face value of 10 ten thousand yuan.	Available for testing, R&D outsourcing, and other services
Tongliao City	Interest subsidy for loans to technology-based small and micro enterprises	Subsidy rate shall not exceed 50% of the loan interest rate.

Subsidy policies may be adjusted annually. We recommend that enterprises stay informed about the latest notices issued by their local science and technology bureaus.

5. Priority Project Initiation for Technology Initiatives

After obtaining certification as a technology-based SME, the enterprise will be given priority when applying for science and technology projects at all levels:

• In the evaluation of major projects under the Autonomous Region's Science and Technology Special Programs and Key R&D Plans, technology-based small and medium-sized enterprises (SMEs) are given bonus points or prioritized for support.
• In the central government's fund for guiding local technological development, technology-based small and medium-sized enterprises (TSMEs) are eligible for a higher proportion of funding support.
• Some cities and leagues have established innovation funds for small and medium-sized enterprises (SMEs), which are open to eligible tech SMEs already registered in the database.

VI. Financing Guarantees and Credit Support

To address the financing challenges faced by science and technology-oriented small and medium-sized enterprises, Inner Mongolia has established a multi-tiered financial support system:

• Tech Loan:Multiple banks have launched exclusive credit products for technology-oriented SMEs, offering lower interest rates than standard commercial loans. Some products require no collateral or guarantee.
• Intellectual Property Pledge Financing:Enterprises can pledge intellectual property rights such as patents and trademarks to secure bank loans, with subsidies provided by the autonomous region for a portion of the assessment and guarantee fees.
• Government-backed financing guarantee:The regional government's financing guarantee institutions have reduced the guarantee fee rate for technology-based small and medium-sized enterprises to below 1% and eliminated the requirement for counter-guarantees.
• Risk Compensation Mechanism:Some regions have established risk compensation pools for technology-based SME loans to reduce banks' lending risks and increase companies' chances of securing funding.

7. Talent Acquisition and Intellectual Property Protection

In terms of talent, high-level professionals recruited by technology-based small and medium-sized enterprises (SMEs) are eligible for regional talent introduction policies, including housing subsidies, priority enrollment for children's education, and healthcare benefits. In some areas, these technology SMEs are also included in the scope of the talent housing security program.

For intellectual property, certified technology-based small and medium-sized enterprises (SMEs) receive fee subsidies when applying for patents or trademark registrations. Some municipalities also offer rewards of 5000 to 10000 yuan per granted invention patent. Additionally, the Intellectual Property Rights Protection Assistance Center provides free legal consultations and guidance on rights enforcement for these SMEs.

VIII. How enterprises can plan their policy benefit pathways

We recommend that technological innovative SMEs in Inner Mongolia systematically plan their policy benefits along the following path:

1. Step 1:Complete the evaluation for technology-based small and medium-sized enterprises to obtain basic eligibility.
2. Step 2:Launch R&D expense auxiliary ledger construction simultaneously to ensure compliant claiming of additional deductions.
3. Step 3:Coordinate with the local science and technology authority to identify the application window for fiscal subsidies at your level.
4. Step 4:Apply for autonomous region science and technology plan projects as a science and technology-based small and medium-sized enterprise.
5. Step 5:Partner with banks to apply for tech loans or intellectual property pledge financing.
6. Step 6:Build on your status as a technology-based SME to prepare for High-Tech Enterprise certification and maximize policy benefits.

9. Professional consulting brings policy benefits to life

Maximizing policy benefits requires professional planning and standardized execution. Many companies have been certified as technology-based small and medium-sized enterprises (SMEs) but fail to fully realize their entitled incentives due to unclear understanding of policy details or incomplete documentation.

Mengzheng Certification provides technical consulting services for Inner Mongolian enterprises to apply as Technology-based Small and Medium Enterprises. For inquiries, please call:18686047746, visit for more detailswww.mengzhengcertification.topOur expert team helps businesses identify applicable policies, develop systematic plans to leverage them, and ensure every benefit is implemented compliantly and efficiently.