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Investment Policy
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A .
Preferential taxation terms for the promotion of technical innovation and improvement in science and technology
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1. A reduced corporate income tax rate of 15% is levied on hi-tech enterprises which the nation attaches great importance to support. The hi-tech enterprise that the nation attaches great importance to support should be verified and refer to those having self-owned intellectual property rights and meeting all the following conditions:
a. Products (or service) fall into the scope as specified in the Key State Supported Hi-tech Industry Field.
b. The proportion of R&D costs accounting for the total sales revenue should be no lower than the stipulated proportion.
c. The proportion of income rising from hi-tech products (or service) accounting for the total income of the enterprise should be no lower than the stipulated proportion. d. The proportion of technicians accounting for the total employees should be no lower than the stipulated proportion.
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B .
Preferential taxation terms on the supportive projects such as environment protection, energy and water conservation, comprehensive utilization of resources and safe production.
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1. For enterprises that deal with such projects as sewage disposal, public garbage disposal, comprehensive development and utilization of methane, technical innovation for energy saving and emission reduction and seawater desalination, etc., they can enjoy the favorable policy on the corporate income tax during the taxable years of 3-year-exempted-and 3-year-half-exempted commencing from the enterprise earning the first income from its operation.
2. For enterprises that utilize as main raw materials the resources that falling into the List of Enterprises Deserving Preferential Corporate Income Tax Terms for Comprehensively Using Resources, as well as can meet the stipulated proportion, and its produced products are not limited or otherwise banned by the nation and can satisfy the relevant industrial criterions, then its income rising from making the above said products can enjoy a reduction of 10% when the total tax-payable income sum is calculated.
3. In case that the enterprise purchases and actually uses the special equipments as specified in the List of Enterprises Deserving Preferential Corporate Income Tax Terms for Special Environment Protection Equipments, List of Enterprises Deserving Preferential Corporate Income Tax Terms for Special Energy & Water Conservation Equipments and List of Enterprises Deserving Preferential Corporate Income Tax Terms for Special Safe Production Equipments, as for such kind of environment protection, energy and water conservation and safe production equipment, 10% of investment in purchasing the aforesaid equipment can be deducted from the enterprise’s total corporate income tax of the current year. In case it isn’t sufficient to deduct in that very year, deduction can be continuously made in the following 5 tax paying years.
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C .
Preferential taxation terms for supporting the development of agriculture, forestry, husbandry and fishery
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Corporate income tax is completely exempted for enterprises that deal with the following businesses:
Plantation of vegetables, grains, potatoes, oils, beans, cottons, linens, sugars, fruits and nuts; selection and nurturing of new agricultural produces; plantation of Chinese traditional herbs; plantation and nurturing of forests; raising of livestock and poultry; collection of forest produces; irrigation, coarse process of agricultural produces, veterinarians, promotion of agricultural technologies, agricultural machinery operation and maintenance, plantation of flowers, teas other beverage crops and fragrant seasoning crops; seawater breeding and inland breeding.
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D.
Preferential taxation terms for encouraged development and construction of infrastructure
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Enterprises that earn incomes by means of investments in developing harbors, wharfs, airports, railways, highways, urban public transportations, electric and water conservancy projects, etc. shall be given 3-year-exempted and 3-year-half-exempted favorable policy on the corporate income tax during the taxable years commencing from the enterprise earning the first income from its operation.
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E .
Preferential taxation terms for enterprises with narrow margin
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Preferential tax rate of 20% is given to small enterprises with narrow margins subject to verification thereof. The criterion for verifying the qualification of enterprises with narrow margins is as follows:
(1) Industrial enterprises with annual payable tax under RMB300,000, employing under
100 persons and total fixed assets under RMB30 million.
（2）Other enterprises with annual payable tax under RMB300,000, employing under 80 persons and total fixed assets under RMB10 million.
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