Encourage Investment Policy
Preferential Treatment to Foreign-Invested Enterprises
·
The foreign-invested processing type of enterprises which schedule
to operate over 10 years can be waved from income tax during the
first two profitable years. A further 50% reduction shall be granted
from the following third year to the fifth year. The income tax
should be 15% during the normal years.
·
After the tax-free and tax-reduced years regulated by the nation's
taxation law, the export-oriented enterprises shall pay its 10%
income tax if its export values accounts for more than 70% of the
total output value in that year.
·
Technologically advanced enterprises shall pay the tax at a reduced
rate of 10% for an additional three years if they remain to be
technically advanced enterprises after tax-free and tax-reduced
years.
·
Foreign investors, who reinvest the share of profit earned from
their enterprises to increase their registered capital or in other
enterprises locally, for a period of 5 years or more, may obtain a
refund of 40% of the income tax already levied on the reinvested
amount upon approval by the taxation authorities. Those who reinvest
their profit earnings to establish or expand export-oriented or
technologically advanced enterprises shall receive a full refund of
income tax previously paid on the reinvested amount. The refunded
tax shall be returned to the authorities if the reinvested
enterprises withdraw within 5 years.
·
After-tax profits to be remitted by foreign investors abroad will be
exempted from income tax.
·
There are also preferential policies for land use and mineral
resource exploration, promoting forest farming and grass planting on
barren mountain slopes and fields, and the reverting of cultivated
land to forest and grassland. Those who revert cultivated land to
forest and grassland enjoy land use rights, as well as rights of
ownership of forest or grassland. Economic entities and individuals
may apply to utilize barren mountain slopes and fields according to
legal procedures, plant trees and grass, and practice ecological
environmental protection. Alternatively, they can be granted the
land use rights directly from the state, in which case the land
utilization fee will be either exempted or reduced. Land use rights
will remain unchanged for a period of 50 years. On expiration of
this period, application may be made for renewal of these rights.
The granted rights of land use may be inherited, or transferred on
payment of a transfer fee. The government supports activities
involving mineral resource exploration, evaluation, rational
utilization and protection
Extra Preferential Treatment
(Detail information please contact our Government Investment team
GOV@gbaltd.org.uk )
Global Business
Associates
