Tax

      1.For the foreign invested productive enterprise established in this city, the enterprise income tax is imposed at the reduced rate of 24%; for newly set up foreign invested productive enterprise, whose operating period is longer than 10 years, after the “2 years free and 3 years half” income taxation period as stipulated in the Tax Law, from the 6th year on the enterprise may apply for the government to approve that the local financial revenue be arranged for a special fund, which will give the enterprise 50% of the local royalty from the income tax really paid as a refund every year in the 3 years to come.

2.For the foreign investment projects in high and new technology, the enterprise income tax is collected at the lowered rate of 15%, With approval by the authorities concerned. After the “2years free and 3 years half “ income taxation period ads stipulated in the Tax Law, the enterprise may apply for the government to approve that the local financial revenue be arranged for a special fund, which will give the enterprise 50% of the local royalty from the income tax really paid as a refund every year from the 6th to 10th year.

      3.For the projects with foreign investment of over 10 million US dollars, foreign investment projects in power plants, roads, railways, bridges, harbors, piers, gas, water works, water conservancies and other infrastructure projects, projects for comprehensive development of agriculture (including farming, forestry, animal husbandry or aquiculture, and related processing industries), projects for agricultural product export and structural adjustment of agriculture, all these enterprises enjoy the “2years free and 3years half” income taxation policy as stipulated in the Tax Law; after that period, the enterprise may apply for the government to approve that the local financial revenue be arranged for a special fund, which will give the enterprise 50% of the local royalty from the income tax really paid as a refund every year from the 6th to 10th year when the enterprise begins to make profit.

      4.The foreign investment enterprises, which exploit barren hills, barren riversides, waste waters or uncultivated lands for structural adjustment of agriculture, enjoy 3 years free from submitting the agricultural tax and approve that the local financial revenue be arranged for a special fund, which will grant the enterprise 100% of the agricultural tax and special product tax really paid every year from the 4th to 6th year as an award. Those enterprises, which still have financial difficulty in the 7th year, may continue receiving, an award equal to 25% -50% of the agricultural tax and special product tax really paid every year for 2 or 3 years.

      5.For the productive foreign investment enterprises, the local income tax is exempted during the “2 years free and 3 years half” period, After this period of tax exemption, the local income tax may still be exempted for 3 years for export-oriented enterprises, provided that the yearly export value is above 50% of the production value of the year.

      6.An enterprise with advanced technology or export-oriented foreign investment enterprise after the period of the income tax exemption and reduction, if the technology is still advanced, the half reduction period may be extended by 3 years; if the yearly export value is above 70% of the output of the year, the tax may still be paid half, But if the enterprise has enjoyed the low tax rate of 15% already, it should pay the enterprise income tax at the rate of 10%, provided that it meets the requirements mentioned above.

      7.If a foreign investor reinvests his profit received from the invested enterprise to set up a new enterprise in China with export-oriented product or advanced technology, and operates it for 5 years or longer, he may get back all the enterprise income tax which was paid on the basis of the reinvested amount; if he reinvests in the sane enterprise to increase the registered capital, or uses the profit as capital to set up a new enterprise whose operation period is no less than 5 years he may get 40% of the enterprise income tax paid on the reinvested amount refunded, period is no less than 5 years ,he may get 40% of the enterprise income tax paid on the reinvested amount refunded.

      8.Mechanical and electrical products made by a foreign investment enterprise, which has won a bid through the international way of public bidding and uses a loan from a foreign government or a loan from an international financial organization, are treated as exporting products and may enjoy a refund of the value added tax.

      9.After a foreign investment enterprise has purchased equipment, which is made in China and belongs to the tax-free catalog, the enterprise may get a full refund of the value added tax on the domestic domestic equipment, provided that the purchasing is within the total amount of investment.

      10.A foreign investment enterprise, which receives and exports the goods made by it ,is exempted from the consumer tax and the value added tax at this link; a foreign investment enterprise, which produces export products or processes imported materials into export goods, may enjoy refunding the value added tax and the consumer tax because of exporting.

      11.For a foreign-invested project, which belongs to the encouraged category or the restricted Category B as conforming to the “GUIDE TO FOREIGN INVESTMENT IN INDUSTRIES”, and which transfers technology, the imported equipment for its own use is exempted from the customs tariff and value added tax the import link, except for a commodity which is listed in the “CATALOG OF IMPORT COMMODITIES NOT DUTY-FREE FOR FOREIGN INVESTMENT PROJECTS”,

      12.A general taxpayer of value added tax who sells the computer software product, or integrated circuit product (including single crystal silicon chip) that is developed and produced independently by himself, right after paying tax legally rated as 17%, gets a refund of the part that exceeds 3% for software product, or exceeds 6% for circuit product as the actual tax rate immediately upon taxation.

13.Foreign investment enterprises which increase their expenditures on technological development by 10% or more compared to last year, after being approved by the tax bureau, are allowed to have a part the tax they should pay for this year cancelled, the amount of cancellation is equal to half of the technological development cost actually occurred.