Preferential tax policies for foreign capital and joint ventures
(1) Preferential tax policies for foreign-invested enterprises encouraged by the state
Enterprises with foreign investment encouraged by the state refer to enterprises whose main business is encouraged projects in the Catalogue of Industries with Foreign Investment and industrial projects specified in the Catalogue of Industries with Foreign Investment Advantage in Guangxi, and whose main business income accounts for more than 70% of the total enterprise income.
During the period from 1.200 1 to 20 10, the enterprise income tax will be levied at the reduced rate of 15%.
2. Equipment imported for self-use within the total investment of the project shall be exempted from customs duties and import link taxes, except for goods that are not exempted from duty in the Catalogue of Imported Commodities for Foreign-invested Projects.
3. Enterprises importing self-use equipment that cannot be produced in China or whose performance cannot meet the needs with their own funds other than the investment amount (referring to enterprise reserve fund, urban development fund, depreciation and after-tax profit), as well as technologies and accessories matching with the above equipment (including those imported with the equipment or imported separately), shall be exempted from customs duties and import link taxes, except for those commodities that are listed in the Catalogue of Imported Commodities for Foreign-invested Projects.
4. For the domestic equipment purchased by an enterprise within the total investment, except for the commodities listed in the Catalogue of Imported Commodities for which Foreign Investment Projects are not Duty-free, 40% of the investment in the purchase of domestic equipment can be credited from the enterprise income tax increased in the year when the equipment was purchased compared with the previous year.
5. Enterprises adopt advanced and applicable new technologies, new processes, new equipment and new materials to improve economic benefits, improve product quality, increase varieties, promote product upgrading, expand exports, reduce costs, save energy, strengthen comprehensive utilization of resources, control three wastes and protect labor safety. Transform existing facilities and production process conditions, and purchase domestic equipment other than the total investment, or purchase 40% of the investment in domestic equipment.
In the fourth and fifth paragraphs above, the amount of enterprise income tax credit for domestic equipment investment of foreign-invested enterprises in each year shall not exceed the new enterprise income tax in that year compared with the year before equipment purchase. If the newly-added enterprise income tax in that year is insufficient to be deducted, the amount of investment that has not been deducted can be deferred for deduction in the next year by comparing with the newly-added enterprise income tax in the previous year when the equipment was purchased, but the longest period of deferred deduction shall not exceed five years.
6. Enterprises purchasing domestic equipment within the total investment, as well as plastic parts, rubber parts, ceramic parts and pipes for petrochemical projects purchased with the equipment listed in the purchase contract, can fully refund the value-added tax, except for the goods listed in the Catalogue of Imported Goods for Foreign Investment Projects that are not Duty Free.
Equipment enjoying tax refund must meet the following two conditions:
(1) must be unused domestic equipment purchased in currency, excluding investors' investment in physical and intangible assets;
(2) It must be the domestic equipment purchased after 1 September 19991the total amount of tax refund investment approved by the tax authorities.
7. The imported equipment listed in the Catalogue of Imported Goods Not Duty Free for Foreign Investment Projects includes televisions, cameras, video recorders, audio equipment, air conditioners, refrigerators, freezers, washing machines, cameras, copiers, program-controlled telephone exchanges, microcomputers and peripheral equipment, telephones, wireless pagers, fax machines, electronic calculators, typewriters and word processors, automobiles and motorcycles.
8. Foreign-funded non-oil and gas mineral resources exploitation projects shall be exempted from mineral resources compensation fees for five years.
(2) Long-term reduction and exemption of enterprise income tax with low tax rate for the following regions and industries.
1. For productive foreign-invested enterprises located in Nanning Economic and Technological Development Zone, Sino-foreign joint ventures engaged in port and dock equipment in Guangxi, and foreign-invested enterprises established in Nanning High-tech Industrial Development Zone and Guilin High-tech Industrial Development Zone and recognized as high-tech enterprises by Guangxi Science and Technology Department, corporate income tax will be levied at a reduced rate of 15% for a long time.
2. For productive foreign-invested enterprises located in Nanning, Beihai, Wuzhou, Qinzhou, Yulin, Fangchenggang, Pingxiang, dongxing city, Hepu and Cangwu, and foreign-invested enterprises located in Beihai National Tourism Resort, corporate income tax will be levied at a reduced rate of 24% for a long time. Among them, foreign-invested enterprises encouraged by the state are subject to enterprise income tax at a reduced rate of 15% from 200 1 to 20 10.
Productive foreign-invested enterprises refer to foreign-invested enterprises that engage in the following acts:
A. machinery manufacturing and electronics industry;
B. Energy industry (excluding oil and gas exploitation);
C. Metallurgical, chemical and building materials industries;
D. light industry, textile and packaging industries;
E. medical devices and pharmaceutical industry;
F agriculture, forestry, animal husbandry, fisheries and water conservancy;
G. construction industry;
H. transportation (excluding passenger transport);
I. Scientific and technological development, geological survey, industrial information consultation and maintenance services of production equipment and precision instruments directly serving production.
High-tech enterprises refer to enterprises engaged in the following high-tech fields:
A. electronics and information technology;
B. bioengineering and new medical technologies;
C. new materials and applied technologies;
D. advanced manufacturing technology;
E. aerospace technology;
F. Modern agricultural technology;
G. new energy and energy-saving technologies;
H. new technologies for environmental protection;
First, marine engineering technology;
J. nuclear application technology;
K other new processes and technologies used to transform traditional industries.
(three) to implement regular enterprise income tax relief for enterprises that meet the following conditions
1. For productive foreign-invested enterprises with an operating period of more than 10 years, enterprise income tax will be exempted in the first and second years from the profit-making year, and enterprise income tax will be halved in the third to fifth years, hereinafter referred to as "two exemptions and three reductions". Among them, foreign-invested enterprises encouraged by the state will be subject to enterprise income tax at a reduced rate of 15% from 200 1 to 20 10.
2. Chinese-foreign equity joint ventures engaged in the construction of ports and docks with an operating period of more than 15 years shall be exempted from enterprise income tax from the first year to the fifth year, and the enterprise income tax shall be halved from the sixth year to the tenth year, hereinafter referred to as "five exemptions and five reductions".
3. Sino-foreign joint ventures established in Nanning High-tech Industrial Development Zone and Guilin High-tech Industrial Development Zone, which are recognized as high-tech enterprises by Guangxi Science and Technology Department, shall be exempted from enterprise income tax in the first and second years from the profit-making year. Among them, productive foreign-invested enterprises and foreign-invested enterprises encouraged by the state shall be implemented in accordance with the above provisions.