Preferential policy

Preferential Policies for  the WFOE:

   
Items Title of Doccuments Relevant Contents
1 Proviso 4, clause 1, article 73, PRC Tax Law for Foreign Investment Enterprises (FIE) and foreign enterprises (FE)  FIEs of a production nature set up in Shanghai Pudong New Area and FIE’s engaged in projects for airports, sea ports, railways, highways, power stations and transportation are taxed at a reduced rate of 15%.

 

2 Written confirmation from the State Concil on Waigaoqiao in Shanghai, Tijian port, Futian Shenzhen,Shatoujiao Shenzhen, Dalian, Guangzhou, Xiangyu Xiamen, Zhangjiagang, Haikou,Qingdao,Ningbo, Fuzhou, Shantou ,Zhuhai, Yantian Shenzhen Free Trade Zone (GuoHan [1991]26,[1991]32,[1992]43,[1992]44,[1992]148,[1992]150,[1992]159,[1992]179,[1992]180,[1992]181,[1993]3,etc) Production-type FIE shall be taxed at reduced rate of 15%.

 

3 Written confirmation from the State Council on Issues relating to the Development and Construction of the Suzhou Industrial Park (Guo Han [1994]

 

The production-type FIEs set up in Suzhou Industrial Park shall be taxed at 15% reduced rate.

 

4 Notice of the State Council on the issue of Running National Holiday Resorts on a Trail Basis ([1992] 46) Foreign investment enterprises set up in the National Holiday Resorts are taxed at a reduced rate of 24%.

 

5 Clause 1, article 8, PRC Tax Law for Foreign Investment Enterprises (FIE) and foreign enterprises (FE)   Production-type FIEs with an operating period over 10 years are eligible for tax exemption in the first two years and a 50% tax reduction in the following three years. 
6 Proviso 3, clause 1, article 75,Implementation Regulations of the PRC
Tax Law for Foreign Investment Enterprises (FIE) and foreign enterprises
The FIE’s set up in Shanghai Pudong New Area engaged in the construction of airport, sea port, railway, highway, power station, energy,resource and transportation facility with an operating period over 15 years, are eligible for tax exemption in the first to fifth years and a 50% tax reduction in the sixth to tenth years, subject to the application by the enterprises and the approval from the tax authority in Shanghai.

 

7  Clause 1, article 7,PRC Tax Law for Foreign Investment Enterprises(FIE) and Foreign Enterprises(FE) The FIE set up in special economic zones (the SEZ), The FE that set up organizations and place of business to carry on production and operations in the SEZ and the production-type FIE set up in economic and technology development zones, shall be taxed at 15%. 
8 Clause 3, article 7,PRC Tax Law for Foreign Investment Enterprises(FIE) and Foreign Enterprises(FE) The FIE set up in coastal economic open zone, the old urban district of the cities where coastal economic open zones, special economic zones, and economic technology and development zones are located, and engaged in projects relating to energy, transportation, ports, and wharfs, or projects that are encouraged by the state, are taxed at a reduced rate of 15%. 
9 Proviso 4, clause 1, article 73, PRC Tax Law for Foreign Investment Enterprises (FIE) and foreign enterprises (FE)   Production-type FIE’s set up in the old urban cities where the coastal economic open zones, special economic zones, and economic technology and development zones are located, and engaged in the following: technology and capital intensive projects; projects with foreign investment amounting to more than USD 30 million with long pay-back periods; and construction projects for energy resource, transportation and ports, are taxed at a reduced rate of 15%.