Preferential Policies In Taxation For Foreign-Funded Enterprises

Preferential Policies In Taxation For Foreign-Funded Enterprises

Tax & Preferential Terms
Economic & Technological Zones

Open Area

Others Areas

Corperation Income Tax
Tax Rate Productive enterprises 15% 24% 30%

Non productive enterpises 30%

Specially Designated Economic Sectors Export-oriented enterprises 10% 12% 15%

Enterprises engaged in energy, port, communications, technology-intensive projects & projects of long period of investment recovery 15%

Joint ventures engaged in port construction , electricity power 15%

Enterprises of high-tech set up in the national Hi-tech Industrial Development Zones designated by the State Council 15％（2 years of tax exemption for sino-foreign joint ventures)

The period for tax exemption or reduction (with the duration of 10 years) Productive enterprises 2 years of tax exemption followed by 3 years of 50% reduction

Specially Designated Economic Sectors Technologically advanced enterprises 2 years of tax exemption followed by 6 years of 50% reduction

Foreign banks 15% in the areas approved by the State Council (one-year of exemption followed by 2 years of 50% reduction on USD over 10 million of circulation input by the bank headquarters)

Joint ventures engaged in port construction , electricity power 5 years of tax exemption followed by 5 years of 50% reduction beginning from the first profit-making year for the enterprises with business duration over 15 years

Enterprises engaged in agriculture, forestry, animal husbandry or in the underdeveloped remote area Tax reduction from 15%-30% for another 10 years following the period for tax exemption and reduction

Tax refund on reinvestment 1.A taxpayer shall be entitled to get the refund of 40% tax on the profit reinvested in the same business to increase the registered capital or to other business in China for operation no less than 5 years;
2.A taxpayer shall be entitled to get refund of all the paid tax on the profit being reinvested in an export-oriented or technologically-advanced enterprise for operation no less than 5 years;

3.A taxpayer shall be entitled to get refund of all the paid tax on the profit contributed to domestic public welfare organizations.

Profit Remitting Tax Exempted

Tax On Profit-taking in advance 10% 20%

Local income tax Exempted by the provintial people's Government 3％

Tax & Preferential Terms					Economic & Technological Zones	Open Area	Others Areas
Corperation Income Tax	Tax Rate	Productive enterprises			15%	24%	30%
		Non productive enterpises			30%
		Specially Designated Economic Sectors	Export-oriented enterprises		10%	12%	15%
			Enterprises engaged in energy, port, communications, technology-intensive projects & projects of long period of investment recovery		15%
			Joint ventures engaged in port construction , electricity power		15%
			Enterprises of high-tech set up in the national Hi-tech Industrial Development Zones designated by the State Council		15％（2 years of tax exemption for sino-foreign joint ventures)
	The period for tax exemption or reduction (with the duration of 10 years)		Productive enterprises		2 years of tax exemption followed by 3 years of 50% reduction
			Specially Designated Economic Sectors	Technologically advanced enterprises	2 years of tax exemption followed by 6 years of 50% reduction
				Foreign banks	15% in the areas approved by the State Council (one-year of exemption followed by 2 years of 50% reduction on USD over 10 million of circulation input by the bank headquarters)
				Joint ventures engaged in port construction , electricity power	5 years of tax exemption followed by 5 years of 50% reduction beginning from the first profit-making year for the enterprises with business duration over 15 years
				Enterprises engaged in agriculture, forestry, animal husbandry or in the underdeveloped remote area	Tax reduction from 15%-30% for another 10 years following the period for tax exemption and reduction
	Tax refund on reinvestment		1.A taxpayer shall be entitled to get the refund of 40% tax on the profit reinvested in the same business to increase the registered capital or to other business in China for operation no less than 5 years; 2.A taxpayer shall be entitled to get refund of all the paid tax on the profit being reinvested in an export-oriented or technologically-advanced enterprise for operation no less than 5 years; 3.A taxpayer shall be entitled to get refund of all the paid tax on the profit contributed to domestic public welfare organizations.
Profit Remitting Tax					Exempted
Tax On Profit-taking in advance					10%		20%
Local income tax					Exempted	by the provintial people's Government	3％