Guangzhou
Development Zone, Guangzhou Hi-Tech
Zone, Guangzhou Bonded Zone and Guangzhou
Export Processing Zone are the development
zones at national level with the approval
of the State Council. Various preferential
policies are implemented and protected
legally as follows:
For foreign-invested productive
enterprise, its business income
tax which should be levied at
15% will be reduced. For foreign-invested
enterprise with more than 10 years
of operation period, its business
income tax is exempted in first
two years as from profit-making
year and reduced by half from
3rd ~ 5th year.
For foreign-invested enterprise
in our zone and with more than
10 years of operation period,
its local income tax is exempted.
For
foreign-invested advanced technology
enterprise that is approved by
government, the reduction of business
income tax levied at 10% may be
implemented in following three
years according to Tax Law after
the exemption term of business
income tax expires.
For
foreign-invested products export
enterprise that is approved by
government, the reduction of its
business income tax levied at
10% may be implemented after the
exemption term of business income
tax expires; as long as its output
value of exported products reach
over 70% of its production value
of that year.
For
foreign-invested enterprise that
its approving authority approves
it as products export enterprise
and advanced technology enterprise
within the same year, it may enjoy
one of the preferential policies
at its own selection.
Comparison of income tax rate between GZ Development Zone and other areas:
Import permits
for imported raw materials and parts to be used
for the production of exported product aren¡¯t
needed and import duty and value-added tax of
exported products with materials supplied by clients
are exempted.
Export duty of enterprise¡¯s
exported products is exempted (unless otherwise
stated in national regulations).
If foreign investor reinvests
after-tax profits distributed from invested enterprise
in the enterprise or other enterprises in the
development zone in more than five years, 40%
tax paid for reinvestment will be returned. If
the foreign-invested enterprise is a product export
enterprise or advanced technology enterprise,
100% income tax paid for reinvestment will be
returned.
When foreign investor
after-tax profits remits to other countries beyond
China, income tax on remitted amount can be exempted.
Exported products produced
by enterprises in the development zone are exempted
from export duty and value-added tax (except for
exported products restricted by the government).
If foreign investor doesn¡¯t set up offices, but
its dividend, rent, franchise right fee and other
incomes are originated from the development, the
reduction of income tax levied at 10% is implemented
apart from legal exemption from income tax.
If any loss happens to
any organization engaged in production operations,
which foreign investor establishes in the development
zone, the income in next tax year can be used
for remedying the loss; in the event of insufficient
income in next tax year, the remedy may be continued
year after year, but not exceed 5 years.
Tax on premises£ºTaxes on the buildings newly built
or purchased by foreign investors will be exempted
in successive three years as from the date when
they are completed or purchased.
Preferential
policies
