1.Income tax of Foreign Investment Enterprise
Productive foreign investment enterprises needn’t pay income tax for two years and then pay half the income tax during the next three years if its period of management reaches ten years or more. Local finance will give more benefits and reward to the industries that our policy encourages to develop.
Exported-product enterprises set up by foreign investment enterprises can still pay half the income tax if 70% value of the products or more of the whole product value is exported.
Enterprises of advanced technology type set up by foreign investment will continue to pay only half of the income tax three years for prolongation according to the policy.
If foreign investment enterprises buy the equipment made in China can make compensation for income tax according to the policy.
2 . Return the income tax paid if you invest again
Foreign investors in foreign investment enterprises will be given back 40% of the income tax paid if they invest again and manage for five years or more with their profits after tax. If you invest in exported-product enterprises or enterprises of advanced technology type and manage for five years or more, you will be given back the money, income tax that you paid for your investment again.
3 .Tax-free for imported equipment
For the imported equipment China encourages to develop, customs duty and value-added tax of import are free. If foreign investment enterprises that is encouraged, research and develop centers of foreign investors, exported-product enterprises or enterprises of advanced technology type improve their technology and import equipment for their own use as well as technology, parts or spare parts, if they can’t be made in our country or the function performance of the equipment of our country can’t meet the demand customs duty and value-added tax of import are free.
4 .Income Tax for Remitting Abroad
Foreign investment enterprises needn’t pay income tax for remitting abroad when they remit their profits after tax from the enterprises.