Home Knowledge China China Taxes Corporate Taxes Preferential Policies Concerning Foreign Investments Income Tax Preferential Policies for Foreign Invested enterprises
a. |
The income tax of the following foreign invested enterprises and projects shall be levied to the rate of 15%:
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b. |
The income tax of the following foreign invested enterprises and projects shall be levied to the rate of 24%:
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a. |
Manufacturing foreign invested enterprises, with an operation term of 10 years and over, shall be exempted from income tax for the first 2 profiting years, and enjoy a deduction of 50% income tax in the 3rd to 5th profiting year. |
b. |
Foreign invested enterprises and projects engaged in construction of ports and docks, with an operation term of 15 years and over, shall be exempted from income tax for the first 5 profiting years, and enjoy a deduction of 50% income tax in the 6th to 10th profiting year. |
c. |
Foreign-invested enterprises engaged in agriculture, forestry and animal husbandry and those located in underdeveloped areas, upon the expiry of the tax exemptions and deductions enjoyed by them in accordance with the stipulated provisions, on the application of such enterprises and with the approval of the administrative department of the State Council, their income tax may continue to be reduced by 15% to 30% in the following 10 years. |
d. |
Foreign-invested enterprises engaged in the service sector established in special economic zones, should their foreign investment exceeds USS 5 million and their term of operation exceeds 10 years, shall enjoy an exemption of enterprise income tax for the first profiting year, and a deduction of 50% of enterprise income tax for the 2nd and 3rd profiting year. |
e. |
Financial institutions such as foreign banks and Sino-foreign joint equity banks set up in areas approved by the State Council, should the financial inputs of foreign investors or the operating funds injected by the head office of a bank to the branch exceed USS 10 million and their term of operation exceeding 10 years, shall enjoy an exemption of enterprise income tax for the first profiting year, and a deduction of 50% of enterprise income tax for the 2nd and 3rd profiting year. |
a. |
Key software production enterprises within the national planning and distribution shall enjoy a reduced tax rate of 10%, provided that they have not enjoy an exemption in the same year. |
b. |
The expenses for wages and training of the software production enterprises shall be deducted from the taxable income as per the actual amount. |
e. |
The cost of enterprises' and undertaking units' purchase of software shall be accounted as fixed assets and intangible assets, provided that such cost meets the criteria of the fixed assets or becomes intangible assets. The fixed number of year for the depreciation or sale promotion of such assets shall be suitably shorted with a minimum of 2 years, subject to the approval of the State General Administration of Taxation for foreign invested enterprises with a total investment of over US$30 million, or the ratification of the administrative taxation institutions for foreign invested enterprises with a total investment of less than US$30 million. |
a. |
Integrate circuits designing enterprises are regarded as soil-ware production enterprises, hence enjoy the favorable policies for software industry. |
b. |
The fixed number of year for the depreciation of the production equipment of the integrate circuits production enterprises shall be suitably shorted with a minimum of 3 years, subject to the approval of the State General Administration of Taxation for foreign invested enterprises with a total investment of over US$30 million, or the ratification of the administrative taxation institutions for foreign invested enterprises with a total investment of less than US$30 million. |
e. |
Integrate circuits production enterprises with a total investment of over RMB 8 billion, or producing integrate circuits with a line width of less than 0.25?JAm, shall enjoy the following preferential treatments:
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