Dezan Shira & Associates’ Kyle Freeman Provides Insights on Tax Incentives and Considerations for IP Driven Businesses in China

On January 15, 2026, Miller Kaplan hosted a thought-leadership webinar, Unlocking China: IP Protection, Investment Pathways, and Innovation Incentives, bringing on two experts in Chinese intellectual property protection and tax law to help equip their clients and audience with strategies to safeguard innovation and maximize growth in China.

The webinar featured insights from Kyle Freeman, Partner and Head of the North American Desk at Dezan Shira & Associates, and Eunice Wu, IP Partner at Merits & Tree Law Offices, who addressed critical considerations for businesses navigating China’s evolving regulatory environment.

Tax Incentives and Structuring for IP-Driven Businesses

Kyle Freeman shared an overview of tax considerations related to royalties, cross-border business structures, and incentive programs available to innovation-focused companies in China. He highlighted one key tax incentive pathway for IP-driven businesses: the High and New Technology Enterprise (HNTE) program.

For companies that qualify as HNTEs, Freeman explained that the corporate income tax (CIT) rate can be reduced from 25 percent to 15 percent, while the carryforward period for tax losses is extended from five to ten years—significantly enhancing long-term tax efficiency. During the Q&A session, he also addressed common pitfalls in contract drafting, outlining how businesses can avoid unexpected tax liabilities when structuring cross-border royalty and licensing arrangements.

Protecting IP and Enforcing Rights in China

Eunice Wu focused on intellectual property protection strategies, covering trade secrets, brand integrity, licensing, and dispute resolution in China. She emphasized the importance of proactive IP management and well-designed enforcement playbooks as competition continues to intensify.

Wu reassured attendees that foreign plaintiffs can and regularly do win in Chinese courts when cases are properly prepared and supported by strong evidence. She concluded by outlining best practices companies should implement now to safeguard their IP assets and mitigate risk as they plan for 2026 and beyond.