Foshan Company Registration Services
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Foshan local government aimed to attract more investors to do business there , the local state publsihed the preferential policies about the lower tax for the foreign and native businessmen do to business . Some lower tax preferential policies as follows :
1.Value-added tax (VAT) of domestically made equipment within the tax exemption catalogue shall be refunded in full amount if foreign-funded enterprises that fall into the encouraged category purchase those equipment in China with a total amount within the tax refund investment total controlled by taxation administrations
2.Productive foreign-funded enterprises scheduled to operate for a period of 10 years or more may be exempted from enterprise income tax in the first and second profit-making year and allowed a 50 per cent reduction in income tax in the third to fifth year and are entitled to exemption of local income tax during the tax reduction and exemption period.
3.Foshan city enjoys taxation preferential policies for coastal economic open zones and, productive foreign-funded enterprises may pay enterprise income tax at a reduced rat of 24 per cent. Productive foreign-funded enterprises engaging in the following projects, upon approval by State Administration of Taxation, may pay enterprise income tax at a reduced rated of 15 per cent.
4.Foreign investors of foreign-funded enterprises who reinvest their shares of profits into their enterprises to increase the registered capital or to establish other enterprises as the capital for a period of operation of no less than five years, upon approval by the tax authorities of the applications filed by the enterprises, shall be refunded 40 per cent of enterprise income tax already paid on the reinvested portion.
5.After the expiration of the period for the reduction or exemption of enterprise income tax in accordance with the provisions of the state, “product-for-export” foreign-funded enterprises, with the value of export products in that year amounts to 70 per cent or more of the value of their products for that year, may pay enterprise income tax at a rate reduced by one half of the current tax rate(enterprise income tax will be levied at a rate of 10 per cent if the reduced rate is lower than 10 per cent.) and is entitled to exemption of local income tax.
6.Foreign-funded enterprises with a 10 per cent or more increase in technology development expenses over the previous year, upon approval by the tax authorities, are allowed to further deduct 50 per cent of the actual amount of technology development expenses from the taxable income of the year.
7.Foreign-funded research and development centers are allowed to import and sell a small quantity of high and new technology products produced by their parent companies for market testing of their research and development products.
8.Importation by foreign-funded research and development centers within its aggregate investment, of self-use equipment and the technologies, components and parts attached to such equipment that can not be produced in China or their performance fail to meet the demands, may be exempted from customs duties and value-added taxes in the linkage of imports with the exception of commodities listed in the Catalogue of Imported Commodities not Entitled for Tariff Exemption for Projects with Foreign Investment(attachment 5, Shushui nctionallnt, opment center, witd parts attached to such equipment that can not be produced or functionall .
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