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What preferential policies may product-exporting enterprises and tech-advancing enterprises enjoy?
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| 2005-11-30 15:53:01 |
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According to the government’s regulation, a foreign-invested enterprise may enjoy the following preferential treatments as soon as it is recognized as one of the above-mentioned two categories of enterprises:
(1) Any enterprise in the two categories may be exempted from payment of various bonuses offered to employees in accordance with the government’s regulations except for the payment or extraction for the labor insurance, welfare benefits, and housing auxiliary fund of Chinese employees in accordance with the government’s regulations.
(2) For the limited water, electric power, transport, and communication facilities supplied, their charge will be in accordance with the standard for local state-owned enterprises.
(3) The short-term working capital needed to debit in production and circulation and other necessary credits may preferentially be lent after verification of the Bank of China.
(4) The product-exporting enterprise after the business income taxes reduced or omitted period regulated by the nation expires may be exempted from a half of business income taxes in accordance with the current tax rate if its exported products take 70% or over of the total amount of sales in the same year.
(5) The tech-advancing enterprise may enjoy exemption from 50% business income taxes in the additional three year after the nation-regulated business income taxes reduced or omitted period expires.
(6) The enterprises in the special economic zone and the economic and technical development zone, and other product-exporting and/or tech-advancing enterprises enjoying 15% tax rate of business income taxes, may further enjoy 10% tax rate of business income taxes.
(7) The enterprises in the above-mentioned two categories and acquiring the land-using right by requisition or transfer may enjoy preferential treatment of reducing or exempting charge for use of land in light of the classes of lands.
It must be explained here that the preferential treatments offered for the enterprises in above-mentioned two categories is not a perpetual policy. According to the regulation by the Ministry of Foreign Trade and Economic Cooperation, any enterprise confirmed as a product-exporting one is required to accept annual check by the government sector, if it fails to pass the check, it will lose the qualification and is required to pay the exempted or reduced part of taxes; the tech-advancing enterprise also is required to accept irregular check, and its confirmation certification will be withdrawn if it fails to pass in the a few successive checks.
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