| Valve thematic cluster: Ten sword into the | | | | transitional preferential enterprise income tax |
| future of industrial new favorite Valve | | | | table" implementation. |
| State Department recently released "The State | | | | Notice emphasized that the transitional preferential |
| Council on the implementation of the Transitional | | | | policies with the new Enterprise Income Tax Law |
| Preferential Policies of Enterprise Income Tax | | | | and Implementation Regulations of the Preferential |
| notice" requirement, since January 1, 2008, the | | | | Policies cross by the enterprise to choose the |
| original companies to enjoy preferential low tax | | | | most favorable policy implementation, not |
| rates in the 5 years after the implementation of | | | | superimposed to enjoy, and once selected, shall |
| the new tax law gradually transition to the tax | | | | not be changed. |
| rate; the original to enjoy enterprise income tax | | | | 30 existing preferential policies have "extended" |
| of "two reductions and three half" and "five five | | | | "Implementation of the transitional preferential |
| half-free" and regular reduction of tax concessions | | | | enterprise income tax table" that can be |
| to companies, the new tax law comes into force, | | | | designated to enjoy transitional preferential tax of |
| continue with the original tax Law , Administrative | | | | 30 of the original laws, administrative regulations |
| regulations and related documents at a favorable | | | | and the effectiveness of the document with the |
| way and enjoy life to the expiration date, but did | | | | administrative rules and regulations. These files are |
| not enjoy the tax benefits but not yet profitable, | | | | specific to a foreign part of the concessions, |
| and its preferential period starting from 2008; | | | | some are foreign concessions in the SAR, and |
| Western development enterprise income tax | | | | some are specific to particular regions of |
| preferential policies will be continued. | | | | incentives. |
| Together with the notice published in the | | | | Which incentives specifically for foreign-funded |
| "implementation of the transitional preferential | | | | enterprises include the production of foreign |
| enterprise income tax table" also shows that, | | | | Investment Enterprises operate for a period of |
| when the former tax laws, administrative | | | | more than ten years, the annual profit from the |
| regulations and administrative rules and regulations | | | | beginning, the first and second year exemption |
| binding document with 30 items, these offers are | | | | from enterprise income tax, the third to fifth |
| mainly previous concessions and some regions | | | | year of income tax and so on. |
| Foreign tax concessions. | | | | Foreign concessions in the SAR, including, in the |
| 2008 implementation of preferential tax rate by | | | | special economic zones for foreign-invested |
| 18% | | | | enterprises in special economic zones set up |
| Notification requirements, since January 1, 2008, | | | | institutions or establishments engaged in |
| the original company to enjoy the preferential | | | | production and operation of foreign enterprises |
| policies of low tax rates, new tax laws in the 5 | | | | and economic and technological development |
| years after the implementation of a gradual | | | | zones in productive enterprises with foreign |
| transition to the statutory tax rate. Among them, | | | | investment, 15% reduction in income tax; |
| enjoy corporate income tax rate of 15% of the | | | | established in Shanghai Pudong New Area of |
| company, in 2008 the tax rate by 18% in 2009, | | | | productive foreign-invested enterprises, as well as |
| the tax rate by 20% in 2010 by 22% in 2011, the | | | | in airports, Port , Railways, highways, power |
| tax rate of 24%, in 2012 the tax rate by 25% ; | | | | plants and other energy and transportation |
| of the original tax rate of 24% of enterprises, | | | | construction projects of foreign-invested |
| since 2008 the tax rate of 25%. | | | | enterprises pay a 15% rate for corporate income |
| From January 1, 2008, the former enjoy the | | | | tax. |
| enterprise income tax of "two reductions and | | | | Also, there are a regional preferential measures, |
| three half" and "five five half-free" and regular | | | | such as, Guangdong Province Shenzhen, Zhuhai, |
| reduction of tax concessions to business, the new | | | | Shantou Special Economic Zone of the corporate |
| tax law comes into force, continue with the | | | | income tax rate of 15% and so on. |
| original tax laws and administrative regulations and | | | | Notice also states that "the State Council on the |
| related documents at a favorable way and enjoy | | | | implementation of the" Nationalism and long-term |
| life to the expiration date, but did not enjoy the | | | | scientific and technological development |
| tax benefits but not yet profitable, and its | | | | (2006-2020) a number of supporting policies to |
| preferential period starting from 2008. | | | | inform the> "provisions of incentives, namely," |
| Notice said, enjoy the transitional preferential | | | | a new national high-tech industrial development |
| policies of the enterprise, is March 16, 2007 prior | | | | zone established strictly determined by high-tech |
| to registration by the industrial and commercial | | | | enterprises, the annual profit within two years |
| Management Registration authorities to establish | | | | from the income tax exemption, "according to |
| the enterprise; the implementation of projects and | | | | the transitional preferential policies are |
| scope of the transitional preferential policies in | | | | implemented. |
| accordance with "the implementation of the | | | | |