Investors say they are satisfied with the development of China (Shanghai) Pilot Free Trade Zone and are optimistic about its future, according to a report that evaluates the zone’s one-year operation.
According to China’s Corporate Income Tax Law, the applicable EIT rate for this type of non-resident enterprise (without an office in China or deriving income unrelated to such an office) shall be 20 percent. Notably, the applicable EIT rate can be as high as 25 percent for other types of non-resident enterprises
The business model behind the pioneering China (Shanghai) Pilot Free Trade Zone should now be copied at other suitable sites across the country where conditions are right, according to President Xi Jinping.
All enterprises and other income receiving organizations (excluding sole proprietorship enterprises and partner ship enterprise) within China shall be the taxpayers of the enterprise income tax.