- Foreign-invested manufacturing enterprises can enjoy the
preference of the income tax levied at 15 percent. The enterprises,
with an operation period of over ten years, may be exempt from income tax in
the first and second year from the profit-making year. A 50% reduction of
the income tax from the third year to the fifth year will be allowed at the
same time.
Special Treatment
- newly established production foreign-invested enterprises, total investment equal
to or over $10 million, shall be expemted from corporate tax for another three years;
- newly established enterprises, total investment between $5 million (including
$5 million) and $10 million, shall be expemted from corporate tax for another two years;
- newly established enterprises, total investment below $5 million, bet belong to
encouraged type industries of the country, shall be expemted from corporate tax for
another two years;
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Technologically advanced enterprises may extend for another three
years the payment of enterprise income tax at the rate reduced by 50 percent.
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If the rate of enterprise income tax is under 10 percent from the
beginning of the sixth year, technologically advanced enterprises shall
pay enterprise income tax at a rate of 10 percent. An export enterprise,
with an output value of export products in the current year exceeding
70 percent or more of the total output value of their products in the
current year, shall pay enterprise income tax at a rate of 10 percent
after the expiration of the period for the exemption and reduction of
enterprise income tax in accordance with the provisions of the State.
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All export enterprises and technologically advanced enterprises
shall be exempted from local income tax during the period for the
exemption of enterprise income tax in accordance with the provisions of
the State. After the expiration of the above-mentioned period, these
enterprises shall be exempted from local income tax for three years and
afterwards, they shall pay the local income tax at a rate reduced by one
half for another three years.
-
Export enterprises, with an output value of export products in
the current year amounting to 70 percent or more of their total output
value, shall still be exempt from local income tax.
-
The profits foreign investors get from foreign invested enterprises
shall be exempt from income tax.
-
Forty percent of enterprise income tax already paid on the reinvested
portion shall be refunded to foreign investors, who reinvest the profits
distributed to them by their enterprises in order to add registered capital,
or establish other foreign-invested enterprises with an operation period of
no less than five years after application and approval by the taxation
authorities. The total amount of enterprise income tax already paid on the
reinvested portion shall be refunded to foreign investors, who reinvest the
profits distributed to them by their enterprises in order to establish
export enterprises or technologically advanced enterprises for an operation
period of no less than five years after application and approval by the
taxation authorities.
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Besides the above-mentioned preferential policies, reasonable land
prices are provided. The lease price of land with complete
infrastructure is 30-35 USD per square meter(within a land use period of
50 years), lower than most counterparts with same conditions in Shanghai.
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: sjiz@public.sta.net.cn