Taxation
1. High and new technology enterprises may enjoy a 15% rate of enterprise income tax, which is lower than the normal level; and newly started high and new tech enterprises shall enjoy two year?ˉs income tax exemption starting from the year of production.
2. Productive foreign investment enterprises that wish to operate for more than 10 years in the development zone shall enjoy an enterprise income tax exemption in the first and second year and a 50% tax rebate in the third, fourth and fifth year starting from the first year when it begins to make a profit.
3. After the stipulated preferential tax treatment (exemption and rebate) period expires, export-oriented foreign investment enterprises may still, according to the taxation law, enjoy preferential taxation policies of a 50% rebate in the enterprise income tax rate if the value of its exporting products exceeds 70% of its total output value of the year. However, if the tax rate is lower than 10% after rebate, the enterprise shall pay income tax at the rate of 10%.
4. Advanced-technology foreign investment enterprises that are still considered as ?°advanced technology enterprises?±after the preferential taxation treatment period expires may still, according to the taxation law, enjoy a 50% tax rate rebate in enterprise income tax for another 3 years. However, if the tax rate is lower than 10% after rebate, the enterprise shall pay income tax at the rate of 10%.
5. Productive foreign investment enterprises in the development zone shall pay enterprise income tax at a rate of 24%. However, technology-intensive or knowledge-intensive enterprises, enterprises with an investment of over 30 million USD and enterprises engaged in long-term projects that is slow in capital returns shall pay enterprise income at 15%.
6. A foreign investor shall be exempted from income taxes when he obtains his share of profit from the after-tax (or after tax exemption) profit of the foreign investment enterprise according to the taxation laws.
7. financial institutions such as foreign invested banks, branches of foreign banks, Sino-foreign joint banks and financial enterprises that wish to operate for 10 or more years in the development zone and have an foreign investment (or operating capital allocated by the headquarters of a foreign bank to its branch bank in the zone) exceeding 10 million USD may, after applying to the taxation authorities and upon the approval of the latter, enjoy exemption from enterprise income tax in the first year and a 50% rebate in enterprise income tax rate during the second and the third year after the first year when it starts to make a profit.