Malaysia Hotline: +603- 2141 8908
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 live in Chengdu China, you
don't just turn to the relevant government departments for so many certificates
and formalities, but turn to us. We are not only giving you tailor-made service
for your need, but also for your satisfaction. Our’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%.
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)
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com