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Tax Policy

chinadaily.com.cn| Updated: 2018-12-28 Print

We will implement a regional industry tax preferential policy based on the country's western development strategy. We will reduce enterprise income tax by 15 percent to support potential industries and industrial enterprises entering the park. A free tariff policy will be provided for self-use equipment imported within the total investment . We will authorize each industrial area the single-case handling rights to the major introduction of major investor projects according to the territorial management's principle "special discussion for each event".

We will fully implement a regional industry tax preferential policy based on the country's western development strategy. For enterprises researching new skills, products and technology, technological research expenses incurred in one fiscal year that are not intangible assets through profit or loss will be reduced by 50 percent on the basis of actual capital. The cost of intangible assets will be reduced by 150 percent of cost if they form intangible assets.

Technology transfer income under 5 million yuan ($816,725) in a tax year is exempt from income tax. Income beyond 5 million yuan is taxed at half the rate. Income adhering to the Public Infrastructure Projects, Preferential Corporate Income Tax Catalog and Environmental Protection, Energy and Water Conservation Projects Preferential Corporate Income Tax Catalog are exempt from income tax in the first three years, and are taxed at half the rate in the fourth to sixth year. Enterprises that buy and actually use special equipment for environmental protection, energy and water conservation, and production safety -- according to The Enterprise Income Tax Benefits Directory of Environmental Protection Equipment, The Enterprise Income Tax Benefits Directory of Saving Energy and Water Equipment, and The Enterprise Income Tax Benefits Directory of the Safety Equipment -- will receive a write off of 10 percent of the equipment investment from the current year’s payable tax.

Credit can be carried forward into the next five tax years. In accordance with the provisions of the High-Tech Enterprise Management Approach issued by the Ministry of Science and Technology, Ministry of Finance, State Administration of Taxation, income tax rates of qualifying enterprises will be lowered by 15 percent during the review year.

Preferential tax policies can be formulated by the provinces according to Chinese law. We will provide private enterprises with the most preferential policies. For private enterprises engaged in projects that we encourage, we will reduce the income tax by 15 percent. Technological service income of qualified private enterprise can enjoy tax exemption or lowered taxes. According to the Preferential Catalog on Corporate Income Taxes of Public Infrastructure Projects, a "three-year exemption and three-year half reduction" preferential income tax policy will be given to private enterprises engaged in public infrastructure investment, such as ports, terminals, airports, railways, roads, public transportation, electricity and water conservation. Projects concerning environmental protection and energy and water conservation can also enjoy the income tax policy.

For supported private enterprise projects, private-use equipment within the total investment is exempt from customs duties in accordance with the law. Counties (cities, districts and SAR) will give more than 20 percent of any new business to support the private enterprises with annual sales of more than 30 million yuan. The local government will give a certain amount of subsidies to small, low-profit private enterprises, after the enterprises have paid taxes and received approval by the competent tax departments.

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