 Preferential Policies
|
Investment survey |
Preferential Policies
A．About tax
A-1．Preferential Policy for Enterprise Income Tax
The law of foreign-funded enterprises and enterprise income tax is applicable to foreign-funded enterprise in the People's Republic of China.
Deatils are in the following table. |
foreign-funded enterprises and
enterprise income tax
|
Tax Items
|
Tax Rate
|
|
Income tax
|
Productive enterprise
|
24%
|
|
Energy,traffic,port,knowledge tech-intensive
projects with a total
foreign investment of over
30 million USD
|
15%
|
|
Non-productvie enterprise
|
30%
|
|
The export value of exprot-oriented
enterprise above 70% of the
total turnover in that
year,provided its term of
tax reduction and exemption
has expired
|
12%
|
|
Deadline for tax reduction
and exemption
|
More than 10 years of
management
|
Productive
|
2 years exemption and 3
years half exemption
|
|
Another 10 years reduction
after the expiration of
income tax exemption for the
industries of
agriculture,forestry,husbandry
and fishery
|
|
High-tech enterprise
|
2 years exemption and 6
years half exemption
|
|
|
The new foreign-invested
productive enterprise with an
operational period over 10 years,the
registered capital up to $2 million
or more,and more than 50% of foreign
investment can be exempt from
enterprise income tax in the first 2
years and enjoy a reduction by half
for another 3 years from the year it
starts to make profit, while as a
reward.from the third year,the
enterprise will enjoy exemption from
income tax for 3 years,and another 5
years half reduction by financial
department according to the sum of
enterprise income tax in that year
returned to Wujin Government.
|
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|
A-2．Table
of Income Tax of Foreign-funded
Enterprises and Relevant
Preferential Policies Local income
tax. |
1．For the productive
foreign-investment enterprise,the
local incomet tax will be exempt
during its preferential period of
its state income tax stipulated by
the state.
2．After expiration of the local
income tax exemption mentioned
above,to the exprot-oriented
enterprise,provided the value of its
exports has surpassed 70% of the
tatal turnover in that year,its
local income tax will be exempt,and
to the high-tech enterprise,it can
enjoy another 3 years local income
tax exemption.
3．The local income tax can be
exempt for the foreign-investment
enterprise which can enjoy 15%
income tax according to the law of
tax.
4．The local income tax can be
exempt to the foreign-investment
enterprise in Wujin HighNew-Tech
Industrial Development Zone and
Wujin Comprehensive Development
District for Foreign-oriented
Agriculture. |
| |
A-3．Drawback of the reinvested
profit
The 40% of levied tax of the
reinvestment will be paid back by
the approval of the tax
authority,provided the foreign
investor re-invests the shared
profit from the enterprise in China
and the term of the new investment
exceeds 5 years;the tax authority
will return all levied income tax.If
they withdraw their investment with
in 5 years,the entire drawback
should be repaid. |
| |
A-4．Taxation and tax reduction and
exemption on remitted profit
|
Classification
|
Tax Rate
|
|
General foreign-investment
enterprise
|
10%
|
|
Export-oriented and high-tech
enterprises
|
Exempted
|
|
Energy、traffic、port、knowledgetech-intensive
projects with total foreign
investment of over 30 millon
USD
|
Exempted
|
|
|
If foreign investors remit abroad
the drawback of their investment,tax
will not be levied as remitted
profits. |
| |
A-5．Enterprise turnover taxes and
its prefer-ential policies
1. The foreign-funded enterprise
is exempt from the tariff on the
imported materials which are used to
produce exports,as well as the
corresponding value-added tax.
2. The goods exported directly by
the foreign-funded enterprise or by
agent will be exempt from
corresponding value-added tax,and
the reduced tax of exports can be
counted on the stipulated drawback
rate to compensate for leviable
domestic products.(duty free
imported raw material,component
forexports can not suit this
stipulation). |
