We help AI companies maximize access to China’s tax incentives while ensuring compliance with evolving policy and enforcement practices. Our services are designed for both domestic and foreign-invested enterprises engaged in AI R&D, commercialization, and cross-border operations.

Eligibility and Policy Mapping

• Policy landscape analysis

  We identify tax incentives available to AI businesses under Chinese tax law, including qualifications for high and new technology enterprises (HNTE), advanced technology service enterprises, key software enterprises, and integrated circuit design firms.

• Feasibility assessment for recognition

  We evaluate clients’ eligibility for incentive programs based on business models, R&D capacity, and operational focus, and provide legal support through the recognition and renewal process.

Filing and Structuring

• Special incentive applications

  We prepare and file applications for R&D super deduction, instant VAT refund for software products, reduced corporate income tax rates, and other AI-related tax relief measures.

• Indirect tax planning for digital services

  We advise on VAT treatment for AI outputs, algorithm licensing, SaaS platforms, and other digital services, helping clients identify tax obligations and optimize invoice arrangements.

• Structuring for intangible assets

  We assist in designing transfer pricing models and tax treatments for patents, software copyrights, technical know-how, and other intangible assets in AI ecosystems.

• Compliance for government subsidies

  We guide clients in the lawful use and accounting of government funds—including fiscal subsidies, talent grants, and industrial guidance funds—to prevent subsidy misclassification or clawback risk.

Cross-Border Tax Planning

• Tax structuring for cross-border income

  We advise on structuring and reporting technical service fees, royalties, and cloud service income from China-facing operations, ensuring compliance with Chinese tax and foreign exchange regulations.

• Transfer pricing and reporting alignment

  We help multinational clients align cross-border AI licensing or R&D arrangements with Chinese transfer pricing rules and documentation requirements.

Audit Response and Risk Control

• Tax audit and investigation support

  We represent clients in responding to tax audits, transfer pricing investigations, and inquiries related to VAT refund eligibility, licensing structures, or subsidy usage.

• Long-term tax compliance design

  We help clients build sustainable tax governance frameworks tailored to China’s AI regulatory landscape, reducing future compliance and enforcement risks.