The Implementing Regulations of the Enterprise Income Tax Law of the People's Republic of China is promulgated for effect as of January 1, 2008. The Regulations provide that the expression "high and new-technology enterprises under the key support of the state" as used in the EIT Law are enterprises that have their own independent, kernel intellectual property rights and simultaneously meet some other requirements such as, the product (service) falls within the scope of the High and New Technology Areas Entitled to the Key Support of the State, and other conditions under the measures for the determination of high and new technology enterprises.

The Regulations also provide a definition for intangible asset, which is, the term "intangible asset" refers to the non-monetary long-term assets without a physical form which are held by an enterprise for purposes of producing products, providing labor services, lease, or operational management, etc., including patent rights, trademark rights, copyrights, land use rights, know-how, business reputation, etc.

(China IP News)

2008-01-04