 Import and Export Tax 1. For any foreign invested enterprise, which engages in the encouraged industries of the state¨s Industrial Guidance Category for Foreign Investment, the Duty and VAT for imported self-use equipment shall be free. The raw materials, spare parts, components, parts and auxiliary equipment, auxiliary parts, and packaging materials needed to be imported in order to fulfill the product export contract shall be exempted from Duties, VAT or consumption tax after the inspection by the customs according to the enterprise contracts or export contracts.
2. The export products, made by domestic raw materials, spare parts, components, parts and auxiliary equipment, auxiliary parts, and packaging materials, shall be exempted from duties and VAT.
3. If the enterprises with foreign investment purchase the domestic equipment, the VAT for such domestic equipment can be fully refunded.
4. Export Ratio and Duty for Imported Equipment
|
| Project Type |
Export Ratio |
Duty for Imported Equipment |
Remarks |
| Encouraged Category |
Set by the enterprise |
Free |
Enterprises with a total investment of less than USD 100 million, shall be examined and approved by Zhongshan City Government.
Over USD 100 million: by Guangdong Province Government.
|
| Permitted Category |
100% Export |
Import duties shall be paid but will be refunded within 5 years. |
| Set by the enterprise |
Impose import duties |
| Restricted Category |
Set by the enterprise |
Impose import duties |
Examined and approved by the Ministry of Commerce. |
| Note: If the Enterprises with foreign investment purchase domestic raw materials, the export ratio will not be restricted. |
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Corporate Income Tax
¢ Productive Foreign Invested Enterprises:
Commencing from the profit-generating year, foreign Invested Enterprise can enjoy a tax holiday of two-year exemption from corporate Income tax and a half deduction for the ensuing three years. And those with high/new technology status can apply for an extension of the half tax deduction on expiration of the tax holiday. The Export Oriented enterprises can also apply for the half tax deduction after expiration of the tax holiday if their annual export value exceeds 70% of its total industrial value. The lowest half deduction tax rate is 10%.
¢Domestic Enterprises with High-tech Status: Can enjoy the preferential tax rate of 15%, and for those newly established, can be exempted from corporate Income tax for two years commencing from the first profit-generating year.
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