Several Aspects Of Income Tax Planning For Foreign-Funded Enterprises (1)

In order to attract foreign investment, introduce advanced technology and equipment, and accelerate the development of domestic economy, we have made many preferential tax policies in different regions, focusing on different levels of tax laws and administrative regulations.

　　一、減按15％稅率繳納的優惠　　減按15％稅率繳納所得稅的地區和產業包括：　　1.設在經濟特區的外商投資企業和在經濟特區設立機構、場所從事生產、經營的外國企業；　　2.設在經濟技術開發區的生產性外商投資企業；　　3.在沿海經濟開放區，經濟技術開發區所在城市設立的生產性外商投資企業，經國家稅務總局批準的；　　4.在經濟特區和經國務院批準的其它地區設立的外資銀行、外資銀行分行、中外合資銀行以及財務公司等金融機構，外國投資者投入資本或分行由總行撥入營運資金超過1000萬美元，經營期在10年以上的；　　5.從事港口、碼頭建設的中外合資經營企業；　　6.在國務院確定的國家高新技術開發區設立的被認定為高新技術企業的外商投資企業，以及在北京市新技術開發試驗區設立的被認定為高新技術企業的外商投資企業；

7. foreign-invested enterprises established in Pudong New Area, Shanghai, and foreign-invested enterprises engaged in energy and pportation construction projects such as airports, ports, railways, highways, power stations, and foreign invested enterprises engaged in infrastructure construction in Pudong New Area and Shanghai; and 8. of the productive foreign-invested enterprises engaged in processing export in the bonded areas approved by the State Council; 9., foreign invested enterprises which are set up in other regions under the State Council to engage in state encouraged projects.

The application of the above 15% tax rate is only limited to the income gained by enterprises in the corresponding areas.

Therefore, there are regional tax planning and business content planning.

Two, reduce the 24% tax rate to pay income tax concessions, 1. of the foreign investment enterprises and foreign enterprises in the coastal economic development zones and the special economic zones; the foreign investment enterprises in the old urban areas of the city where the economic and technological development zones are located 2.; the 3. foreign-invested enterprises in the national tourist resort; 4. foreign investment in the national tourist resort, and the enterprise income tax reduction of 24% of the preferential tax rate, but enjoying the exemption and reduction of enterprise income tax on a regular basis is limited to productive enterprises.

The application of the above 24% tax rate is only limited to the income of enterprises engaged in production and operation in the corresponding areas. If there is a greater preference for regional and business content, there will also be regional tax planning and business content planning so as to share the benefits.

Three, the preferential tax reduction and tax exemption. China persists in encouraging foreign investment to implement the principle of combining regional tilt policy with industrial tilt policy, guiding foreign investment, and encouraging foreign investment enterprises to adopt advanced technology, equipment and all or most of their exports.