The State Administration of Taxation (SAT) has recently issued an Announcement clarifying the subsequent management of three approvals, such as the cancellation of the temporary exemption of personal income tax for the promotion of the transformation of scientific and technological achievements, the difficulty in paying personal income tax on income from discounts or subsidies received by individuals from stock options or stock subscriptions, and the approval of the levy method for law firms, with the aim of simplifying procedures and optimizing services, which will further encourage scientific research and innovation and alleviate the burden of withholding and The tax burden on taxpayers is an important facilitator.

According to the person in charge of the Income Tax Department of the State Administration of Taxation, after the cancellation of the examination and approval on the transformation of scientific and technological achievements into temporary non-taxable personal income, further simplifying its follow-up management has become one of the highlights of the Announcement. The Announcement makes it clear that scientific research institutions, higher education institutions or winners of the transformation of scientific and technological achievements into shares or investment ratios should, within 15 days of the month following the award, submit to the competent tax authorities the Record Form for Temporary Exemption of Individual Income Tax on the Transformation of Scientific and Technological Achievements to achieve "one form" to complete the record, without the need to submit the Contribution to Shares. The Certificate of High and New Technology Achievement, the assessment report and confirmation of the value of technological achievements, as well as other relevant details of the award, will be kept by the awarding unit for reference. These greatly simplify the tax-related procedures for the transformation of scientific and technological achievements, which is conducive to further encouraging mass entrepreneurship and innovation and stimulating the new kinetic energy of "double creation".

The Announcement also clarified the cancellation of the individual acquisition of stock options or stock subscriptions, etc. to obtain discounts or subsidies on income personal income tax taxation difficulties after the audit and the approval of the law firm levy method to unify the implementation of post-filing management, and the main body of the filing procedures, processing time, filing forms and related materials, and other operational points to regulate.