On 29th of June, 2016, the Ministry of Science and Technology (MOST), Ministry of Finance (MOF) and State Administration of Taxation (SAT) jointly released an announcement regarding the revision of “Working Guidance of Administrative Measures for Recognition of High and New Technology Enterprise” (Guokefahuo  No. 195, ‘New Guidance’). The New Guidance sees significant change concerning HNTE compliance thresholds, for example, by establishing a higher HNTE requirement with respect to intellectual property (IP) and innovation assessment capability. It also shows that the government will continue to strengthen its supervision of HNTE status. The Administrative Measures for Recognition of High and New Technology Enterprise (Guokefahuo  No.32) was originally announced by MOST, MOF and SAT on 29th of January, 2016. Please refer to our issue 5 of China Tax Alert for more details.