The high-tech enterprise certificate of Bluestar's Technology expired in October, as usual before the expiration we should submit annual data to the East Lake development zone management committee to update the certificate. However, this year is not so simple, as we should submit detailed information and be reviewed by national-level assessment, why is there such a big change?

On December 25, 2006, the 25th meeting of of the 10th National People's Congress Standing Committee grouped to consider the "People's Republic of China Enterprise Income Tax Law (draft)." During this, the delegates believed that it was necessary to give preferential tax to the high-tech enterprises on national tax revenue, and it was more important to introduce national standards or certification rules. It was recommended that State Department develop more practical and feasible standards, re-audit the approved high-tech enterprises, and abolish those not meet the requirements as soon as possible in order to facilitate the corporate income tax in accordance with the new tax law.

The concept of "High-tech Enterprise" itself is with Chinese characteristics. It does not mean the technical level of enterprises, nor its advanced technology, but the gold content of the industry or technology. The two most important indicators are the proportion of  R&D input in sales account and the proportion of R&D staff in all employees share.

Accordingly, on April 14, 2008 Ministry of Science and Technology, the Ministry of Finance, State Administration of Taxation jointly issued "Notice on the Issue High-tech Enterprise Management Rules" (NSC2008, NO.172), among which "High-tech Enterprise Management Rules" (hereinafter referred to as the "Rules") improved the degree of high-tech enterprises, and it was emphasized that the Ministry of Science and Technology, the Ministry of Finance and Administration of Taxation composed of the National Leading Group for the management of high-tech enterprises (hereinafter referred to as "the leading group"), and next level was group office, set up in the Office of the Ministry of Science and Technology, based in the provinces, autonomous regions and municipalities, with the level of financial, tax departments in the region that high-tech enterprise management (hereinafter referred to as "confirming agency"), following the rules to do the work. After enterprises obtain the certificates, they should be in accordance with Article IV of the provisions to deal with tax reduction and exemption procedures in the competent tax authorities.

"Rules" also states: confirming agency conducts business. The confirmed high-tech enterprises will be publically noticed in the "high-tech enterprises management network," for 15 working days, if there is no objection, submitted to the Office of the Leading Group for the record, confirm the results in the network and issue reunified printed "high-tech enterprise certificate" to the enterprises.

At the same time, the term of high-tech enterprise certificate is valid for three years. Enterprises should submit the review application three months prior to the expiry, or it will automatically expire.