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Location:Investment
Regulations > Preferential Policies |
Changzhou
National Hi-tech District is approved by
the State Council and enjoying the preferential
policies granted to National Hi-tech Industrial
Development Zones.
(1) 15% of the net income derived from production,
business and other sources by any manufacturing
enterprise with foreign investment, which
is confirmed to hi-tech enterprise shall
be levied as enterprise income tax. A newly
established joint venture scheduled to operate
for a period of 10 years or more shall be
exempted from the income tax in the first
two profit-making years and allowed a 50%
reduction from the third to the fifth year.
After the tax period of enterprise income
tax reduction and exemption has expired
in accordance with the provisions of the
State, the payment of enterprise income
tax at a reduced rate of 10% may be granted
for a period of another 3 years for certified
technological-advanced enterprise. For export-oriented
enterprises, if the annual export value
of the products amounts to 70% or more of
the output value of the products, the enterprise
income tax at a reduced rate of 10% may
be levied (Two-year full exemption and three-year
half reduction).
(2) Any enterprise with foreign investment
engaged in the construction of port, highway,
power plant, energy, communications and
municipal infrastructures, and scheduled
to operate for a period of 15 years or more
share be exempted from the enterprise income
tax in the first five profit-making years
and allowed a 50% reduction from the sixth
to the tenth year.
(3) Any enterprise with foreign investment
shall be exempted from local sub tax in
the period of exemption of the enterprise
income tax as provide by the state.
(4) A foreign investor of a joint venture
who reinvests its share of profit in the
same joint venture or for setting up a new
joint venture in the Zone for a period of
not less than five years may, upon approval
by the tax authorities, obtain a refund
of 40% of the income tax paid on the reinvested
amount. If the reinvested share of profit
is used to set up or expand an export-oriented
joint venture or a technologically advanced
joint venture, whose period of operation
is not less than 5 years, the entire amount
of the income tax paid on the reinvested
portion shall be refunded.
(5) The export products by a joint venture
with foreign investment, except those stipulated
by the State, shall be exempted from the
customs duties and tax on added valve can
be refunded according to relevant regulations.
(6) The import equipment of all projects
encouraged by the state shall be exempted
from the customs duties and margin tax.
Purchasing domestic equipment is encouraged,
and the enterprise shall enjoy the relevant
preferential policies according to the state
regulations.
(7) Joint ventures with foreign investment
in CND may be allowed a reduction of subsidies
for city construction and surcharges for
increasing capacity of water. Their needs
of water, electricity, gas and communication
facilities for production and business operation
will be given priority.
(8) Joint ventures with foreign investment
in CND will, from the date of obtaining
the land use right, are exempted from the
land use fee for ten years. |
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