Preferential Policies on Encouraging the Development of Enterprises in Shenyang Economic & Technological Development Zone
(Key Industrial Zone in Tiexi Industrial Belt)
Article I In order to encourage and support the rapid development of enterprises in the zone, the following preferential policies are laid down.
Article II Administrative Committee of Shenyang Economic & Technological Development Zone sets up ＾technological innovation foundation for technological type middle and small-sized enterprises￣ and ＾enterprise development capital￣ to support new & hi-tech fruits' industrialization projects, large-scale investment with high technology content and important leading projects for the development of development zone and enterprises' development.
Article III Enterprise income tax shall be collected 15% of tax rate to the production-type foreign invested enterprises, of which, enterprises operated over for 10 years, through approval, from the profit year, enterprise income tax is exempted in the first and second year; from the third to fifth year, enterprise income tax shall be collected in half. Foreign investors' income from additional investment projects outside the original contract can be calculated solely enjoying the preferential policy of exempting two and deducting three from profit year, for specific items will be carried out in accordance with CS (2002) No. 58 issued by Finance Ministry and National Tax Bureau.
Article IV For foreign invested export enterprises, after the expiration of stipulated exemption period, if its output value of export products reach over 70% of the current year, enterprise income tax will be collected 10% of the tax rate. For advanced technology enterprises, after the expiration of stipulated exemption period, if it is still an advanced technology enterprise, enterprise income tax will be collected 10% of the tax rate for another 3 years.
Article V Foreign investors invest profits gained from invested enterprise to its' own enterprise or other enterprise in the development zone with over 5 years' operation period, through approval, its' enterprise income tax paid from reinvestment part shall be returned by 40%; reinvest in export enterprise or advanced technology enterprise with over 5 years' operation period, through approval, all its enterprise income tax paid from reinvestment part shall be returned fully. For those enterprises withdrew investment in less than 5 years' operation should pay back the returned income tax; for those enterprises haven't reached the export products' standard within 3 years from the beginning of operation or haven't been conformed as advanced technology enterprises continuously should return 60% of exempted tax.
Article VI To foreign investors who haven't set up constitution in China, but have income from stock interests, interests, rent fee, use fee of franchise rights and other income from development zone, their income tax should be paid 10% of tax rate except for legal exemption parts.
Article VII Foreign investors remit profits after tax to the outside China, the income tax of the remitted amount is exempted.
Article VIII If technology innovation expense of foreign invested enterprises in current year increase 10% than previous year (including 10%), through official approval, such enterprises are permitted to withhold 50% of actual technology innovation expense as the current years' income tax.
Article IX For various enterprises in the development zone who pay taxes in time according to local principle and in conforming with the following conditions, through enterprises' application and approval of Administrative Committee of Development Zone should be appropriated ＾enterprise development capital￣ according to equivalent standard in 1-3 fiscal years. Meanwhile, development zone will stressfully support and assist enterprises in aspects of ＾infrastructure development￣, ＾environment and its protection￣ and ＾technology reform, R&D and innovation of enterprises￣.
1. Projects with investment amount over USD 5 million;
2. Key industrial projects with total profits and taxes over RMB 5 million yuan after enterprise put into production and reach the standard;
3. New & hi-tech projects with over 10 years' operation period;
4. Removal and innovation projects in other places;
5. Special trade and industrial projects;
6. Brand name enterprise projects which play important role in the development of development zone.
Article X Foreign invested enterprises purchase unused domestic equipment with cash within the amount of total investment, through the approval of tax organ, should be returned all value added tax of purchasing domestic equipment; purchase domestic equipment within total investment and in accordance with encouragement projects in Guide Catalogue of Foreign Invested Enterprises, 40% of the purchasing fee can be exempted from the newly increased enterprise income tax than the last year.
Article XI The above preferential policies will be explained by Finance Bureau of Shenyang Economic & Technological Development Zone. |
