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A
Policy & Support:
Aspects
of national taxation and fee
preferential policies
China tax systems applies various
regimes for foreign investors. The provincial authorities conduct a proactive campaign to attract
capital and foreign investment to stimulate the creation of employment and economic growth. For this purpose, certain types of
investments benefit from additional incentives that are in general granted in form of local
subsidies). The existing competition between the different provinces can also created a difference in the recognition of these subsidies or the agreement reached with the local authorities. Therefore, the tax authorities at both the local level and the
state level are not compelled to accept agreements negotiated by the
governments. This kind of negotiation duality and multilevel acceptance often involve the relevant tax
authorities to ensure an appropriate level of acceptance. Furthermore, even
if the local tax authorities initially accept the tax filings supporting the
incentives claims, the future is far from certain simply because these
granted incentives fall outside the tax legislation.
ⅰ.Foreign-funded enterprises engaged
in manufacture shall pay income tax
at a favorable rate of 15%.
ⅱ.Business ventures able to
demonstrate their commercial value
to the local government are able to
negotiate tax concessions-tax free
years & 50% reduction years .
ⅲ. Any enterprises with foreign
investment engaged in the
construction of port and wharf
facilities shall be exempt from
enterprise income tax in the first 5
years and allowed a 50% reduction
from the sixth to the tenth years.
iii.Foreign investors in a joint
venture who receive profits from
investment enterprises are exempt
from paying income tax.
iv.Equipment imported by
overseas-funded projects within their total investment value and for their
own use is exempt from customs duties and importation value-added taxes
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B
Federal Incentive Policy:
A foreign investor in a joint
venture who reinvests the share of
profit in the same joint venture or
to establish a new joint venture,
for a period of not less than five
years may, upon approval by the tax
authorities, may obtain a refund of
40% of the income tax paid on the
reinvested amount. If the reinvested
share of profit is used to set up or
expand an export-oriented joint
venture or a technologically
advanced joint venture, the entire
amount of the income tax paid on the
reinvested portion shall be
refunded.
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C
District
Incentive
Policy:
1. The newly registered enterprises (foreign investment or domestic
investment ) in the Zone, attracting annual levied added-value tax and
business tax amounting to $US 100,000 or above, will be given a rebate
equivalent to 50% (in the first 3 years) and 25% (in the following 3 years)
of district revenue from increased enterprise
added-value tax
and business
tax, in addition
to the other
favorable
policies
stipulated by
State, Province
or Municipality.
2. Enterprises
registered in
the Development
Zone, attracting
annual levied
income tax
amounting to $US
100,000. These
incentives are
divided into two
types: Domestic
investment
enterprises will
be given a
rebate
equivalent to
50% (in the
first 3 years)
and 25% (in the
following 3
years) of
district revenue
from the
increased
enterprise
income tax.
Foreign
investment
enterprises will
be given a
rebate
equivalent to
50% of district
revenue from
increased
enterprise
income tax
within 5 years
after expiration
of favorable
policies
stipulated by
the State,
Province or
Municipality.
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D
Import/Export Tax Incentives:
The equipment imported by
overseas-funded projects within
their total investment value and for
their own use is exempt from customs
duties and import link value added
taxes.
E
Infrastructure Investment:
Any enterprises with foreign
investment engaged in the
construction of ports & wharves,
shall be exempt from enterprise
income tax in the first 5 years and
allowed a 50% reduction from the
sixth to the tenth year.
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F
Tax Chart
Please contact
us for updated tax rate information or
for Training,
Export-Import and
consulting projects,
Contact
Said Cherkaoui, Ph.D.,
directly at: Phone:
1 + 510 - 382 - 9040
or
saidcherkaoui@sbcglobal.net
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