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| ★ Shenyang Economic and Technological Development Area |
It is located in the southwest of Shenyang, is a national economic & technological development area approved by the State Council, and enjoys economic management right of city level. The Development Area emphatically develops top ten industrial clusters such as equipment manufacture, automobile and parts, household appliance and instrument etc., constructs such industrial parks as Taiwan Industrial Park, Ningbo Industrial Park and Fujian & Macao Industrial Park etc.
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| ★ Ordinary preferential policy of national economic & technological development area: |
| １ |
A foreign-invested productive enterprise shall pay the enterprise income tax at 15% reduction. Those scheduled to operate for a period of 10 years or more shall be exempted from income tax in the first and second profit-making year and allowed a 50% reduction of income tax (tax rate: 7.5%) in the third to fifth years upon approval. The profits earned by the foreign investors of foreign-invested enterprises from additional investment projects other than the original contract can be calculated separately and shall enjoy the preferential policy of exemption for two years and reduction for three years as of the profit-making year. For specific clauses, CS (2002) No. 56 Document of the Ministry of Finance and State Taxation Administration shall be followed. |
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Export-oriented enterprises on expiration of the exemption and reduction of the income tax stipulated, shall enjoy a reduced enterprise income tax rate of 10% if their export value exceeds 70% of their total annual output value. Advanced technological enterprises, on expiration of the exemption and reduction shall further enjoy a reduced income tax rate of 10% for another three years if they remain to be technologically advanced. |
3 |
Foreign investors who invest their profit earned from their enterprises in the same or other enterprises in the Development Area for a scheduled operation period of over 5 years shall, upon approval, be refunded with 40% of the income tax paid on the reinvested amount; Those who reinvest their profits in export-oriented or advanced technological enterprises for a scheduled operation period of over 5 years shall be refunded with the total amount of the income tax paid on the reinvested amount; In case the new investment is withdrawn by the investor in less than 5 years, the refunded amount shall be paid back; those who fail to meet the export standards in the operation period of 3 years or fail to remain to be technologically advanced shall pay back 60% of the income tax exempted or reduced. |
4 |
Foreign enterprises which gain dividends, interest, rentals, royalties and other income originating from the Development Area, but without organizations or branches in China, shall pay the income tax at 10% per cent except for those who are exempt from the tax according to the law. |
5 |
After-tax profits remitted abroad by foreign investors shall be exempt from the income tax of remitted amount. |
6 |
If technical development expense of a foreign-invested enterprise in the current year is increased by 10% (10% inclusive) over the previous one, the taxable amount in the year is allowed to be deducted at 50% of the technical development expense incurred actually upon approval by the taxation authorities. |
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If a foreign-invested enterprise purchases unused home-made equipment with monetary capital within the total investment, the VAT on the home-made equipment can be refunded fully upon approval by the taxation authorities; if the purchase of home-made equipment within the total investment is in conformity with the encouraged investment projects listed in the “Industrial Catalog Guiding Foreign Investment”, 40% of the investment for home-made equipment purchase can be offset from the newly increased income tax in the current year over the previous one. |
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| ★ Special preferential policy of Taiwan Merchant Industrial Park in Development Area: |
| Besides enjoying preferential policy of national economic & technological development area and northeast revitalization, the enterprises residing in Taiwan Merchant Industrial Park can also enjoy the following special preferential policies of Taiwan Merchant Industrial Park: |
| The land is transferred to the enterprises according to the lowest standard of land transfer fee in the Development Area.
With respect to special and key projects, 1~5% of financial loan discount is given according to the amount of project loan.
“Fee-free Zone” is implemented to exempt such fees as industrial & commercial registration, cost of production, and land registration fee etc.
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