Local income taxes:
1. Foreign invested enterprises with more than 10 years of management term who meet any of the following conditions, after their applications being approved by the city or county tax departments, may be exempted from paying the local income tax for five to 10 years from the first profit-making year:
l Export-oriented enterprises and hi-tech enterprises;
l Projects of dense technology and knowledge;
l Projects of an investment of more than US$30 million, and need a long term for capital recovery;
l Projects concerning the construction of energy, communication and ports;
l Sino-foreign joint ventures engaged in port construction;
l Officially recognized high-tech enterprises established in high-tech industrial development zones;
l Enterprises engage in agriculture, forestry, husbandry and aquiculture;
l Production-oriented enterprises in backward or mountainous counties of the province.
2. Export-oriented enterprises, whose exporting output volume of the year takes up more than 70 percent of the total output value, may be rendered half taxes after the expiry of tax exemption. Advanced-tech enterprises may enjoy three more years a half reduction of taxes after the expiry of tax exemption mentioned above.
3. Companies has a management term of over 10 years but cannot meet the above conditions, after their applications being approved by the local tax departments, should be exempted from paying taxes for the first two years beginning from the profit-making year; from the third to the fifth year, their tax should be cut 50 percent.
4. Tax should be paid according to the following rates after the expiry of the tax exemption and decrease:
|
Manufacturing enterprises in economic and technological development zones |
1.5 % |
|
Manufacturing enterprises in coastal economic and technological development zones |
2.4 % |
|
Other enterprises |
3.0 % |
Personal income tax:
Foreign employees working in foreign-funded enterprises with a salary of over 4,000 yuan should pay personal income tax for the exceeding part accordingly:
|
Level |
Excess volume
(the income volume required for taxes) |
Tax Rate |
Amount of money for quick check |
|
1 |
500 and less |
5 % |
0 |
|
2 |
500 – 2,000 |
10 % |
25 |
|
3 |
2,000 – 5,000 |
15 % |
125 |
|
4 |
5,000 – 20,000 |
20 % |
375 |
|
5 |
20,000 – 40,000 |
25 % |
1,375 |
|
6 |
40,000 – 60,000 |
30 % |
3,375 |
|
7 |
60,000 – 80,000 |
35 % |
6,375 |
|
8 |
80,000 – 100,000 |
40 % |
10,375 |
|
9 |
Over 100,000 |
45 % |
15,375 |
Import tariff and import value-added taxes:
As for the encouraged and limited-B foreign invested projects with the technical transfer, as regulated in Guiding Index of Foreign-invested Industries, the import of the equipment and the corresponding accessories, parts and techniques for their own use and with the cost included in the total investment, excluding the commodities listed in Commodity Index of the Foreign Invested Projects without Tax Exemption, should enjoy the exemption of import tariff and import value-added taxes.
Income taxes of enterprises:
Foreign-invested manufacturing enterprises with over 10 years of management term should enjoy the exemption of the tax for the first two years from the profit-making year, and from the third to the fifth year, their tax will be halved.
1. Joint ventures engaged in the construction of ports and decks, with over 15 years of management term, after being approved, are exempted from their taxes for the first two years and pay half of the taxes from the 6th to 10th year starting from the profit year.
2. Advanced-tech enterprises may extend the half-tax period for another three years after the expiry of tax reduction or exemption.
3. Export-oriented enterprises, whose exporting output volume of the year takes up more than 70 percent of its total output value, should be half-taxed after the expiry of their tax reduction and exemption period.
4. Foreign-funded manufacturing enterprises established in coastal economic and technological development zones, after getting approval, pay 15 percent of the tax if they are engaged in any of the following:
l Projects of dense technology and knowledge;
l Projects with more than US$30 million foreign investment, and with the long term of capital recovery;
l Construction projects of energy, communication and ports;
5. Officially recognized high-tech foreign-invested enterprises located in the high-tech industrial development zones defined by the State Council pay 15 percent of the tax.
6. Companies should pay tax according to the following tax rate after the expiry of their tax exemption and decrease period:
|
Manufacturing enterprises in economic and technological development zones |
15% |
|
Manufacturing enterprises in coastal economic and technological development zones |
24% |
|
Other enterprises |
30% |
Land-us policies
As for the land use, the foreign invested enterprises may apply to the local government and also may obtain the rights for land-use from other land-users by contract, transfer or other methods. The charge for the land-use will not be adjusted within five years from the day when the land-use is authorized. Adjustment will be done properly according to the practical situation. Interval between the adjustments should be three years or longer, and the adjusting scope should not exceed 30 percent of the previous one. The land-use rate should not be adjusted if the expense has been taken as part of the investment.
Export-oriented enterprises and advanced-tech enterprises, except being located in busy city districts, are exempted from paying land-use fee for five years beginning from the day when the land use is authorized; they will be charged half of the price during the period from the sixth year to the 10th year. Other manufacturing enterprises are charged half of the land-use fee during the first five years beginning from the day when the land-use right is authorized.
Industrial policies
On the basis of the present industrial structure status of Zhejiang Province and the requirements for restructuring, foreign investors are especially encouraged to involve in development and cooperation in the following fields:
l Projects concerning the development of agriculture, forestry, water conservancy and electricity network, and the construction of urban infrastructure.
l Large-scale Projects that develop high-quality and raw materials such as petrochemistry, synthetic materials, new construction materials and metallurgic smelting, molding and stretching processing, with reference to the coastal deep-water harbors and existing enterprises in the province who use resources at home and abroad, as well as non-ferrous minerals in Zhejiang Province.
l Projects that can enlarge export, enhance the industrial developing level, speed up the development of four guiding industries, namely, machinery, electronics, chemical and medicinal industries as well as the overall transformation of textile, silk, and cement industries and that can improve deep processing as well as technologic levels, or that can save resources and materials.
l Projects involved in electronic industry, communications, integrated mechanical electronic apparatuses, new materials, biotechnology and other high technologies.
l Manufacturing projects that comprehensively utilize resources and recycled resources and that concerns the new technology and equipment for preventing environmental pollution.
l New-tech projects aiming at deepening procession of agricultural and accessory products as well as other export-oriented agricultural projects.
