Several Aspects Of Income Tax Planning For Foreign-Funded Enterprises (1)

In order to attract foreign investment, introduce advanced technology and equipment, and accelerate the development of domestic economy, we have made many preferential tax policies in different regions, focusing on different levels of tax laws and administrative regulations.

　　一、减按15％税率缴纳的优惠　　减按15％税率缴纳所得税的地区和产业包括：　　1.设在经济特区的外商投资企业和在经济特区设立机构、场所从事生产、经营的外国企业；　　2.设在经济技术开发区的生产性外商投资企业；　　3.在沿海经济开放区，经济技术开发区所在城市设立的生产性外商投资企业，经国家税务总局批准的；　　4.在经济特区和经国务院批准的其它地区设立的外资银行、外资银行分行、中外合资银行以及财务公司等金融机构，外国投资者投入资本或分行由总行拨入营运资金超过1000万美元，经营期在10年以上的；　　5.从事港口、码头建设的中外合资经营企业；　　6.在国务院确定的国家高新技术开发区设立的被认定为高新技术企业的外商投资企业，以及在北京市新技术开发试验区设立的被认定为高新技术企业的外商投资企业；

7. foreign-invested enterprises established in Pudong New Area, Shanghai, and foreign-invested enterprises engaged in energy and pportation construction projects such as airports, ports, railways, highways, power stations, and foreign invested enterprises engaged in infrastructure construction in Pudong New Area and Shanghai; and 8. of the productive foreign-invested enterprises engaged in processing export in the bonded areas approved by the State Council; 9., foreign invested enterprises which are set up in other regions under the State Council to engage in state encouraged projects.

The application of the above 15% tax rate is only limited to the income gained by enterprises in the corresponding areas.

Therefore, there are regional tax planning and business content planning.

Two, reduce the 24% tax rate to pay income tax concessions, 1. of the foreign investment enterprises and foreign enterprises in the coastal economic development zones and the special economic zones; the foreign investment enterprises in the old urban areas of the city where the economic and technological development zones are located 2.; the 3. foreign-invested enterprises in the national tourist resort; 4. foreign investment in the national tourist resort, and the enterprise income tax reduction of 24% of the preferential tax rate, but enjoying the exemption and reduction of enterprise income tax on a regular basis is limited to productive enterprises.

The application of the above 24% tax rate is only limited to the income of enterprises engaged in production and operation in the corresponding areas. If there is a greater preference for regional and business content, there will also be regional tax planning and business content planning so as to share the benefits.

Three, the preferential tax reduction and tax exemption. China persists in encouraging foreign investment to implement the principle of combining regional tilt policy with industrial tilt policy, guiding foreign investment, and encouraging foreign investment enterprises to adopt advanced technology, equipment and all or most of their exports.