| Corporate
Income Tax | Tax
Rate | Reduction/Exemption
Policy |
|
Foreign
Invested Enterprises of manufacturing Nature |
| General |
15% |
Exempted from 3%
Local Corporate Income Tax. |
|
Period of operation
exceeds 10 years | 15% |
As above. In addition,
2 years exemption plus 3 years half tax at the rate of 7.5% from the first profit-making
year. |
| Exporting
enterprises | 15% |
As above. After
first 5 years of enjoying the additional tax incentive, if export value in any
year exceeds 70% of output value, tax rate is reduced to 10%. |
| Technologically
advanced enterprises | 15% |
As above. After
first 5 years of enjoying the additional tax incentive, further 3 years of Corporate
Income Tax rate at 10%. |
|
Others |
| Enterprises
developing harbors, wharves & other infrastructure |
15% |
If intended period
of operation exceeds 15 years, exemption for 5 years from the first profit-making
year and reduced tax rate of 7.5% for another 5 years. |
| Financial
Institutions with more than US$10 million capital investment |
15% |
Must exceed 10 years
period of operation Exemption for 1st profit-making year and reduced tax rate
of 7.5% for another 2 years. |
|
Tax Rebates for
re-investments |
|
Re-investments in
the same enterprise, or a new FIE | 40%
Rebate | New
FIE must have an operation period of more than 5 years;Rebate amount is 40% of
corporate income tax that has been paid on sum re-invested. |
| Re-investment
in export-oriented or advanced technology enterprises |
100% Rebate |
New FIE must have
an operation period of more than 5 years;100% rebate on corporate income tax that
has been paid on sum re-invested. |
| Withholding
Tax |
|
Dividends remitted
to foreign shareholders | 0% |
Complete Exemption |
| Interests,
rental, leasing payment, capital gains, or franchise fees |
10% |
May be further reduced
depending on Double Taxation Agreements signed between China and other countries
after payment of 5% business tax
|
