I. Tax Preferential MethodsTax preferences include tax reductions, tax exemptions, export refunds and some others.1. Tax reduction. That is, according to the provisions of the tax law to reduce a part of the tax payable by the taxpayer. It is a special provision to support or take care of certain taxpayers to reduce their tax burden. Generally divided into statutory tax cuts, specific tax cuts and temporary tax cuts in three ways. 2. tax exemption. That is, some special taxpayers are exempted from a certain (or a few) all taxes. Generally divided into statutory tax exemption, specific tax exemption and temporary tax exemption in three ways. 3. tax deferral. It is a special provision that extends the period of payment of part or all of the tax payable by the taxpayer. 4. export tax rebate. In order to expand the export trade and enhance the competitiveness of exported goods in the international market, according to the international practice, the enterprise has exported the products to refund the domestic turnover tax (mainly value-added tax and consumption tax) paid in the links before exporting.5. Reinvestment tax rebate. That is to say, when a specific investor reinvests the profits made in the enterprise or a new enterprise, the tax paid will be refunded. 6. That is, the tax paid in accordance with the provisions of the tax law, the tax authorities in the collection of taxes partially or fully refunded to the taxpayer. It belongs to the category of tax rebate together with export tax rebate, investment tax rebate, which is in essence a special way of tax exemption and tax reduction. At present, China adopts the policy of immediate refund limited to individual taxpayers who pay VAT. 7. That is to say, after the tax paid according to the tax law is collected by the tax authorities and put into the treasury, the tax authorities or the financial department will give partial or full tax refund or return the tax paid according to the stipulated procedures, which belongs to the category of tax rebate, and in essence, it is also a kind of tax exemption or exemption in a specific way. At present, China adopts the method of first levy and then return mainly applies to taxpayers who pay turnover tax and enterprise income tax.8. Tax credit. That is to say, when taxpayers are subject to income tax on all income or property derived from domestic and foreign sources, they are allowed to offset the tax payable against the income tax or property tax paid abroad, which is a measure to solve the problem of double taxation of income or property among international organizations. Tax credit is a common practice in countries all over the world. 9. Investment credit. That is, the government allows taxpayers to offset part or all of the income tax payable on the basis of the amount of investment in the encouraging investment projects in the country. The implementation of investment credit is a policy measure adopted by the government to encourage enterprises to invest, promote the adjustment of economic and industrial structure, accelerate the pace of technological transformation of enterprises, promote the upgrading and replacement of products, and improve the economic efficiency and market competitiveness of enterprises, and it is a kind of preferential tax policy generally adopted by countries all over the world. Starting from 1999, the Chinese government began to implement the investment credit policy for domestic equipment for technological transformation.10. Starting point. That is to say, the starting point of the tax object to start taxing is set at a certain amount. If the taxable object reaches the threshold, it will be taxed in full, and if it does not reach the threshold, it will not be taxed. The tax law stipulates the starting point for certain taxes. For example, China's current value-added tax policy stipulates that the range of the starting point for the sale of goods by individuals is RMB 2,000 to RMB 5,000 per month; the range of the starting point for the sale of taxable services by individuals is RMB 1,500 to RMB 3,000 per month; and for those who are taxed on a per-tax basis, the starting point is RMB 150 to RMB 200 for each sales transaction (per day). Determine the starting point, mainly in order to take care of small-scale business, income taxpayers to take tax concessions.11. Exemption amount. That is, according to a certain standard from the tax object of all the amount of deduction of a certain amount, the deduction of part of the tax is not taxed, only on the part of the excess tax. 12. accelerated depreciation. That is, according to the provisions of the tax law for taxpayers who pay income tax, allowed to take the method of shortening the depreciation life and increasing the depreciation rate to accelerate the depreciation speed and reduce the taxable income of the current period. II. Existing Major Tax Preferential Policies (i) Tax Preferential Policies to Promote Coordinated Regional Development Tax preferential policies to promote the pioneering development of special zones such as special economic zones and economic and technological development zones. For enterprises located in special economic zones, productive foreign-invested enterprises located in economic and technological development zones and Shanghai Pudong New Area, enterprise income tax is levied at a tax rate of 18%, 20%, 22% and 24% for 2008, 2009, 2010 and 2011, respectively. For the high-tech enterprises in the Special Economic Zone and Shanghai Pudong New Area that have completed the registration after January 1, 2008 (inclusive) and are in need of key support from the State, the income obtained in the Special Economic Zone and Shanghai Pudong New Area shall be exempted from enterprise income tax for the first year to the second year, and halved to 25% from the third year to the fifth year in accordance with the statutory rate of enterprise income tax, from the first taxable year in which the income is derived from the production of the first production. Income Tax. Tax incentives to support the development of western China. From 2001 to 2010, enterprises located in the 12 western provinces (autonomous regions and municipalities) in the category encouraged by the State shall be subject to a reduced enterprise income tax rate of 15%; for new transportation, electric power, water conservancy, postal service, radio and television enterprises, domestic-funded enterprises shall be subject to "two exemptions and three reductions" from the date of their production and operation, and foreign-funded enterprises shall be subject to "two exemptions and three reductions" from the date of their profitability; and land used for the construction of highway national and provincial roads in western regions is exempted from the cultivated land occupancy tax; The local governments at the provincial level in the western ethnic autonomous areas have the right to decide on the appropriate reduction or exemption of enterprise income tax; imported equipment for self-use in projects encouraged by the state can be exempted from import tariffs and value-added tax. Preferential tax policies to support the revitalization of the old industrial bases in Northeast China. Since July 1, 2004, the enterprises in eight industries such as equipment manufacturing and petrochemical industry in Northeast China have been implementing the pilot reform of VAT transformation, which allows them to deduct the input VAT contained in newly purchased fixed assets (except for buildings such as plants, etc., hereinafter referred to as "the same"); and reduces the applicable tax rate for resource tax on mining enterprises in the period of resource exploitation depletion and development of low abundance of oilfields. Tax incentives to promote the rise of central China. Starting from July 1, 2007, enterprises in eight industries, including equipment manufacturing and extractive industries, in 26 cities of old industrial bases in the central region will implement the pilot VAT transformation reform in comparison with those in the northeast region, and will be allowed to deduct the VAT inputs contained in their newly purchased fixed assets. Preferential tax policies to promote the accelerated development of ethnic autonomous areas. The self-governing organs of national autonomous areas may decide to reduce or exempt from taxation the part of the enterprise income tax payable by enterprises in the national autonomous areas that is shared by the localities. (ii) Preferential tax policies to promote the building of a harmonious socialist society Preferential tax policies to serve the "Three Rural Areas" In 2006, the State completely abolished the agricultural tax. A low value-added tax (VAT) rate of 13% has been applied to agricultural products, feedstuffs and chemical fertilizers, etc. Enterprises engaged in the production, wholesaling and retailing of agricultural production materials are temporarily exempted from VAT. Agricultural producers are exempted from VAT on the sale of self-produced agricultural products. Individuals or self-employed persons engaged in planting, farming, breeding and fishing are temporarily exempted from personal income tax. Some agriculture-related projects, such as agricultural mechanized plowing, drainage and irrigation, and pest control, are exempted from business tax. Value-added tax is exempted on policy grain operated by state-owned grain purchasing, marketing, storage and transportation enterprises. Enterprises are exempted from enterprise income tax on income derived from the cultivation of crops, traditional Chinese medicinal herbs and forest trees, the selection and breeding of new varieties of crops, the raising of livestock and poultry, the collection of forest products, offshore fishing, and agricultural, forestry, animal husbandry and fishery service projects as stipulated in the tax law. Enterprises engaged in the cultivation of beverage and spice crops and seawater and inland aquaculture projects as stipulated in the tax law will be subject to a 50% reduction in enterprise income tax. Supporting the reform of rural credit unions, rural credit unions in pilot reform areas are subject to a reduced business tax rate of 3%, while enterprise income tax is also reduced or exempted. Tax incentives to support the development of education. Income derived from the provision of educational labor services by schools engaged in academic education, the provision of labor services by students working and thrifting, and the provision of childcare services by nurseries and kindergartens is exempted from business tax. Income derived from refresher courses and training courses organized by government-organized higher, secondary and primary schools and income derived by vocational schools that meets the prescribed conditions is exempted from business tax. Enterprises organized by special education schools are entitled to preferential tax policies as welfare enterprises. Individuals are exempted from personal income tax on interest earned on educational savings deposits and educational scholarships. Tax incentives, such as business tax, will be given to part of the income from programs after the reform of the logistics system of institutions of higher education. Tax incentives to promote the development of culture, health and sports. Preferential policies on value-added tax and business tax are given to propaganda and cultural units, such as publishing houses and performance organizations. Reduction or exemption of enterprise income tax for a certain period of time for cultural units in pilot reform areas and for enterprises that have converted their operating cultural institutions. Supporting the ideological and moral construction of minors, and granting preferential policies on VAT and business tax for the animation industry compared to the software integrated circuit industry. The medical services provided by hospitals, clinics and other medical institutions that meet the prescribed conditions are exempted from business tax. For organizers and participants of large-scale sports events such as the Beijing 2008 Olympic and Paralympic Games, tax incentives will be given in terms of value-added tax, business tax, enterprise income tax, import tariffs, etc., and appropriate tax incentives will be given to intercontinental events such as the Asian Games and the Asian Winter Games, as well as to the National Games. Preferential tax policies for supporting the employment and re-employment of disadvantaged groups. Enterprises that absorb laid-off unemployed people are given preferential policies to reduce or waive business tax, urban maintenance and construction tax, education surcharge and enterprise income tax. Enterprises that absorb military cadres who have changed jobs on their own initiative, retired soldiers who are self-employed, family members accompanying the military, and those who have been released from "two kinds of labor" are given preferential policies to reduce or waive business tax, and those who run their own businesses are exempted from business tax. For welfare enterprises that take in blind, deaf, mute, physically or mentally disabled persons, they are granted a fixed amount of VAT and business tax exemption; for enterprises that place disabled persons as stipulated in the Law of the People's Republic of China on the Protection of Persons with Disabilities, they are granted preferential treatment in calculating the enterprise income tax by adding deductions to the wages of disabled employees. Enterprises founded by fresh college students who start their own businesses are exempted from tax registration fees. Tax incentives to encourage social donations. Deductions for public welfare donation expenditures incurred by enterprises within 12% of total annual profits are allowed in calculating taxable income. (iii) Tax incentives to promote resource-saving, environment-friendly society encouraging the recycling of waste materials tax incentives. The general VAT taxpayers in the recycling and operating enterprises of waste materials are exempted from VAT on the sale of waste materials. For general VAT taxpayers who utilize waste materials to produce waste materials purchased from recycling enterprises, they are allowed to calculate input tax credit at 10% of the amount stated on the sales invoices of waste materials obtained. Tax incentives to encourage comprehensive utilization of resources. Revenue derived from the production of products that are not restricted or prohibited by the State and conform to relevant national and industry standards, by using the resources specified in the Catalogue of Enterprise Income Tax Preferences for Comprehensive Utilization of Resources as the main raw materials, shall be reduced by 90% and included in the total revenue. For building materials products produced by enterprises whose raw materials are mixed with not less than 30% of gangue, stone coal, fly ash, furnace bottom slag of coal-fired boilers (excluding blast furnace water slag), they are exempted from VAT. The enterprises are exempted from VAT on gold and silver produced by utilizing waste liquid (slag). For comprehensive utilization products produced and processed by taxpayers using three leftovers and second-small salary materials as raw materials, the tax authorities shall implement VAT instant refund. For the utilization of shale oil and related products, recycled asphalt concrete, electricity produced from municipal domestic garbage and cement produced from furnace bottom slag and other waste residues, VAT will be levied and refunded immediately. For electricity produced by utilizing rock coal, coal gangue, coal sludge, oily shale and wind power, as well as some new wall material products, VAT is levied at a reduced rate of half. For the by-products of flue gas desulfurization of coal-fired power plants, the policy of immediate refund of VAT is implemented. Tax incentives to encourage the extraction and utilization of coalbed methane. VAT will be levied first and then refunded on the sales of gas extraction by enterprises. Provide preferential tax rates for consumption tax on low-emission, environmentally friendly automobiles. (iv) Preferential tax policies to promote scientific and technological progress and independent innovation Preferential tax policies to encourage the development of high-tech industries. The actual tax burden of value-added tax on software products is more than 3% of the part of the implementation of the policy of immediate refund, new software, integrated circuit enterprises since the profit-making year to implement the "two exemptions and three reductions", software and integrated circuit enterprises, full deduction of pre-tax wages and training costs, integrated circuit enterprises to implement the re-investment of the tax rebate, the planning layout of the focus of the software enterprises to apply the income tax rate of 10%. The state needs to focus on supporting high-tech enterprises, reduced by 15% of the tax rate for enterprise income tax. Preferential tax policies to encourage enterprises to increase R&D investment to improve independent innovation capability. The R&D expenses incurred for the development of new technologies, new products and new processes by enterprises are allowed to be deducted at 150% of the actual amount incurred before tax. Except as otherwise provided by the competent financial and tax authorities of the State Council, enterprises are allowed to deduct the part of employee education expenses incurred, not exceeding 2.5% of the total wages and salaries, and the part exceeding such amount is allowed to be carried forward for deduction in the subsequent tax years. The key equipment imported by the enterprises for the production of high-tech products as well as undertaking national major scientific and technological special projects, key projects of national science and technology programs, etc., as well as imported scientific research instruments and teaching supplies, shall be exempted from import tariffs and import-related value-added tax. Tax incentives to encourage the promotion and application of advanced technologies. Within a tax year, resident enterprises are exempted from enterprise income tax on the portion of their income from technology transfer not exceeding 5 million yuan; the portion exceeding 5 million yuan is subject to a 50% reduction in enterprise income tax. Income earned by units and individuals engaged in technology transfer, technology development business and related technology consulting and technology service business is exempted from business tax. For scientific research institutions that have been restructured, they are exempted from enterprise income tax, property tax and urban land use tax for a certain period of time. For science and technology business incubators and national university science and technology parks, they are exempted from business tax, property tax and urban land use tax for a certain period of time.