China FIPE Formation Service
Hotline: 86-755-82143348 Email: amyhuang@citilinkia.com
Chengdu is the best place for traveling, rich culture brings a great different feeling for people, especially for foreigner who would like to come here and develop their career, even immigrate here. If you want to know much more information of immigration and visa, ATAHK will give you a good answer.
If you want to live in Chengdu China, you don't just turn to the relevant government departments for so many certificates and formalities, but turn to ATAHK. We are not only give you tailor-made service for your need, but also for your satisfaction. ATAHK’s services are business-orientated and value-orientated.
1. Policies Equal to Those Of A Coastal Open City
In 1993, Chengdu was approved as an inland open city by the State Council. Chengdu is entitled to the following preferential policies:
1).To expand the approval right of foreign - invested projects:
2).To encourage foreign investment
- Foreign-funded production enterprises are subject to a reduced corporate income tax rate of 24%.
- Foreign-invested projects involving technological renovation, knowledge- intensive projects, and projects with a foreign investment value exceeding US$ 30 million and long return period, projects in energy development, communication and port construction, are subject to a reduced corporate income tax rate of 15%, with the approval of the State Taxation Administration.
3).Foreign enterprises and other economic organizations without establishments or sites in Chengdu, while gaining dividends, interest, rents, royalties and other income received from inside Chengdu, are subject to a reduced income tax rate of 10%.
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4).Municipality-level trade corporations which have the conditions are given, with the approval of the Ministry of Foreign Trade & Economic Cooperation, the right of undertaking foreign trade.
5).Foreign investors are allowed to develop and run tracts of land according to the Temporary Rules on the Administration of Land Development and Operation with Foreign Investment approved by the State Council.
6).To simplify the formalities of Chinese businessmen going abroad. For the major businessmen of the companies which are entitled to the right of handling foreign trade or of the large or medium-sized state-owned enterprises, the approval formalities of going abroad is simplified according to relevant regulations and, once approved, is valid for several times.
2. Preferential Import Equipment Tariff Policies
Since January 1, 1998, imported equipment of foreign-invested projects, on the basis of relevant regulations are exempt from corresponding statutory tariff.
1). Under the total investment, imported equipment of projects belonging to the encourage & limited 2nd categories of The Foreign Investment Guide, and involving technological transplant, are eligible to exempt from corresponding statutory tariff, except of products listed on The List of Imported Commodities Not Being Exempt From Tax For Foreign Investment.
2). Imported equipment of the projects involving loans from foreign governments and foreign financial bodies, and the unquote imported equipment offered by the foreign traders in the processing trade, are exempt from corresponding statutory tariff, except for products listed on The List of Imported Commodities Not Being Exempt From Tax For Foreign Investment.
3). Regarding the contract, imported technologies and components of projects conforming with the above-mentioned regulation are also exempt from corresponding statutory tariffs.
3. Preferential Policies for Foreign-Funded Enterprise
1). Except regulated otherwise, productive foreign-invested enterprises with an operation term of over 10 years, shall be exempted from the income tax for two years from the year when they make profits. From the third to the fifth year, the income tax shall be reduced by half.
2). Productive foreign-invested enterprise with an operation term less than 10 years, shall be exempted from local income surtax for 4 years from the year when they make profits, for those over 10 years, local income surtax will be free for 10 years.
3). For foreign-funded hi-tech enterprises, income tax of a reduced rate at 15% is applied.
4). Chinese-foreign hi-tech equity joint venture, with an operation term of over 10 years, shall be exempted from the income tax for two years from the first year when they make profit. If an enterprise is unable to pay the tax, they can apply to the local tax authority for exemption or reduction of income tax within a certain period.
5). For an export-oriented enterprise, with an export volume more than 70% of its annual output value, its income tax shall be reduced by half.
6). After the expiration of the income tax exemption and reduction period above mentioned, if an advancing-technology enterprise still applies advancing technology, the income tax shall be reduced by half for another three years.
7). Conforming to Item No.5 and Item No.6 of the regulation, export-oriented enterprise and advancing-technology enterprise which applied the reduced income tax at the rate of 15%, may enjoy income tax reduced at 10%.
8). Foreign-funded high-tech enterprises and export-oriented enterprises shall be exempted from the local income surtax.
9). In order to encourage establishment of foreign-funded banks and joint venture banks, financial bodies of an investment value of over USS 10 million, and an operation term of over 10 years may apply a reduced income tax of 15% in the first year, with the approval of the State Council. And in the 2nd and 3rd year, the income tax may be reduced by half.
10). In order to encourage the importing of foreign technology and the utilizing of foreign funds, thus to accelerate technological renovation of State-owned enterprises, those foreign companies who have no any branches but have stock dividend, interest, rental and fees of special permission in Chengdu, shall pay the income tax at the rate of 10%. The decision shall be made by the municipal government if a foreign-funded enterprise which offers preferential conditions in providing funds, equipment and transferrable technology asks for more tax reduction and exemption.
4. Supplementary Terms on Foreign Investment in Real-Estate Development
1). Foreign investors may establish equity joint ventures and wholly foreign-owned enterprises to develop real estate in Chengdu. According to the operation term, equity joint ventures include long- term operation and operation on project. Chinese enterprises involved in the long-term operation must be certified for comprehensive development of real estate. While in the operation on project, Chinese enterprises could be any legal person possessing corresponding capital and technological resources.
2）. The registered foreign capital of foreign-investment enterprises must be more than US$ 5 million for wholly foreign-owned enterprises, over US$ 2.5million for long-term joint ventures, and more than USS1 million for operation on project.
3）. Foreign investors are encouraged to reform old districts of Chengdu and sell houses in the overseas market. Preferential policies in terms of fee collecting will be offered to foreign investors involved in the reform of old districts in Chengdu & sales of house in the overseas market.
4）. Hong Kong, Macao and Taiwan compatriots and foreign citizens may purchase houses in Chengdu. Their property rights should be protected by the law.
5）. Preferential Policies on Income Tax Reduction and Exemption for Foreign-Invested Enterprises (FIE)
--Manufacturing hi-tech Foreign-Invested Enterprises (FIE) with an operation period of no less than ten years pay corporate income tax at a lowered rate of 15%. Newly founded manufacturing Foreign-Invested Enterprises (FIE), with an operation period of no less than ten years, are exempted from income tax for two years starting from profit making year, and then pay corporate income tax at a rate of 7.5% for the next three years. After this tax reduction period, if the enterprise is still categorized as of advanced technology, corporate income tax could be collected at a deducted rate of 10% for prolonged three years after approved by relevant governmental departments. (Notice of State Administration of Taxation on How Preferential Policies Is Applied to Hi-Tech Enterprises, State Taxation Issuance [1994] No.151, June 29, 1994)
--FIEs whose exported value reaches 70% of the total output value of the year pay corporate income tax at a deducted rate of 10% that year after the tax exemption period. (Detailed Rules for the Implementation of the Income Tax Law of P.R.C. for FIEs and Foreign Enterprises enforced by the No.85 Ordinance of the State Council, June 30, 1991)
--FIEs in deficit could recompense with the income of the following year, then the year after if not completely recompensed, but so not exceeding five years. (Income Tax Law of P.R.C. for FIEs and Foreign Enterprises, approved by the 4th Conference of the 7th Session of People’s Congress on Apr.9, 1991 and enacted by the No.45 Ordinance of the President of P.R.C. that day)
--FIEs of state encouraged industries established in the middle and western regions shall be collected corporate income tax at a deducted rate of 15% from 2001 to 2010. (Notice of Ministry of Finance, State Administration of Taxation and General Administration of Customs on Preferential Taxation Policies to Facilitate the Large-Scale Development of the Western Regions, Finance Taxation [2001] No.202, Dec.30, 2001)
--Projects of reinvestment by FIEs in the middle and western regions with foreign funds of 25% or higher shall enjoy the same treatment as FIEs. (Notice of the General Office of the State Council to Transmit the Opinions of Ministry of Foreign Trade & Economic Cooperation (now Ministry of Commerce) etc. to Further Encourage Foreign Investment at Present, State Office Issuance [1999] No.73, Aug.20, 1999)
6. Why Choose ATAHK?
① ATAHK had abundant experiences (over 15 years) with more than 50,000 clients. The service net has covered Hong Kong, Shenzhen, Beijing, Shanghai, Guangzhou, Xiamen, Quanzhou, Yiwu, Chengdu, Kuala Lumpur, London, and Dover.
② With healthy co-operative platform between SMEs, ATAHK can provide you well-round, one-stop services which can help you to extend your international business worldwide.
③ ATAHK has built up 18 service centers forming a massive international service platform, especially for SMEs. You are welcome to visit www.3737580.net for more.
7. Contact Us
If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net, or calling Hong Kong hotline at 852-27826888 or Chengdu hotline at 86- 028-86676605 or emailing to 2355725123@QQ.com. You are also welcome to talk with ATAHK online by Wechat：2355725123
CONTACT: Esther
ADDRESS: Unit 1303, 13/F，Shidai Fengshang Bldg. 123 Caoshi St. Qingyang Dis. Chengdu China