China s tax law for the introduction of foreign investment, what preferential measures are proposed

Before 08 years, there were many preferential policies.

Now it's basically gone.

1) The main content of tax incentives.

In order to unify the income tax burden of domestic and foreign-funded enterprises, combined with the new situation of tax reform in various countries, the "Enterprise Income Tax Law" adopts the following five ways to integrate the existing preferential tax policies: first, the preferential tax rate of 20% for qualified small and low-profit enterprises, the preferential tax rate of 15% for high-tech enterprises that need to be supported by the state, the expansion of tax incentives for venture capital enterprises, and the tax incentives for enterprises to invest in environmental protection, energy conservation and water conservation, and production safety. The second is to retain preferential tax policies for investment in agriculture, forestry, animal husbandry and fishery, and infrastructure.

The third is to adopt alternative preferential policies for direct tax reduction and exemption policies for labor service enterprises, welfare enterprises, and enterprises with comprehensive utilization of resources. Fourth, newly established high-tech enterprises that need to be supported by the state in specific areas (i.e., special economic zones) set up by law for the development of foreign economic cooperation and technological exchanges, as well as in areas that have been stipulated to implement the special policies of the above-mentioned areas (i.e., Shanghai Pudong New Area), can enjoy transitional incentives; We will continue to implement the preferential income tax policies for other encouraged enterprises (i.e., encouraged enterprises in the western development area) that have been determined by the state. Fifth, the preferential policy of regular tax reduction and exemption for productive foreign-funded enterprises has been cancelled, as well as the preferential policy of halving the tax for foreign-funded enterprises whose products are mainly exported.

In addition, according to the opinions put forward by the deputies to the National People's Congress, the contents of "income from enterprises engaged in environmental protection projects" and "income from technology transfer that meet the requirements of enterprises" have been added, so as to reflect the spirit of the state's policy of encouraging environmental protection and technological progress. Through the above integration, the main contents of the tax incentives identified include: promoting technological innovation and scientific and technological progress, encouraging infrastructure construction, encouraging agricultural development and environmental protection and energy conservation, supporting safe production, promoting public welfare undertakings and caring for vulnerable groups, as well as special tax reduction and exemption policies for natural disasters.

2) Implement transitional measures for enterprises that originally enjoyed statutory tax incentives.

In order to alleviate the impact of the introduction of the new tax law on the increase in the tax burden of some old enterprises, the new tax law stipulates that the old enterprises that have been approved before the promulgation of the new tax law and enjoy low tax rates and regular tax reductions and exemptions in accordance with the provisions of the tax laws and administrative regulations at that time will be given transitional care: according to the provisions of the current tax law, old enterprises that enjoy low tax rates such as 15% and 24% can enjoy the transitional care of low tax rates within 5 years after the implementation of the new tax law, and gradually transition to the new tax rate within 5 years; After the implementation of the new tax law, old enterprises that enjoy regular tax reduction and exemption can continue to enjoy the preferential treatment that has not yet been enjoyed according to the preferential standards and time limits stipulated in the current tax law, but the preferential period is calculated from the year of implementation of the new tax law. Considering that the transitional measures are highly policy-oriented and the situation is complex, the new tax law stipulates that the specific measures for the above-mentioned transition shall be stipulated by ***.