Preferential Policies for Foreign-Funded Enterprises in Changchun
1. A foreign-funded productive enterprise enjoys the preferential policies tailor-made by the state for the opened costal cities and regions, with its business income tax levied at a rate of 24%. (Note: the business income tax is levied at a rate of 15% for the two national-level development zones, namely, Changchun Economic & Technological Development Zone and Changchun New & Hi-tech Development Zone )
2. A foreign-funded productive enterprises which has operated for more than ten years can be exempted from tax in the first two years from the year it makes profits, and be levied at a half rate in terms of the business income tax in the following three years..
3. A foreign-funded product export enterprise, whose export product value is more than 70% of its total product value in the year after the tax exemption and reduction expires in accordance with the tax law, can be levied at a half rate of the prescribed business income tax. However, the enterprise whose business income tax is levied at a rate of 15% can be levied at a rate of 10%, provided it meets the requirements mentioned above.
4. A foreign-funded advanced technology enterprise whose tax-exemption and reduction has expired can be levied at the half of prescribed business income tax rate for another three years, provided it is still an advanced technology enterprise. However, the enterprise whose business income tax is levied a rate of 15% can be levied at a rate of 10%, provided it meets the requirements mentioned above.
5. A foreign-funded enterprise which is listed as an enterprise encouraged by the state can be levied at a rate of 15% for business income tax upon expiration of the current preferential tax policies
6. A foreign investor who invests the earned profits directly on the enterprise to increase the registered capital funds, or using the gained profits to establish new enterprises to be operated not less than five years will have 40% of the business income tax the investor paid for the reinvested part rebated.
7. A foreign investor, who uses the gained profits as direct investment on opening new product export enterprises or advanced technology enterprises, or on expanding such enterprises, with an operating period of not less than five years, will have the business income tax the investor paid for the reinvested part completely rebated.
8. A foreign-funded enterprise, which makes investment in Midwest China, with the amount of the foreign investment in the registered capital funds not less than a proportion of 25%, can enjoy the preferential tax policies tailor-made for the foreign-funded enterprises upon approval by competent authorities.
9. The equipment imported within the total amount of investment for a foreign-funded project which transfers technologies and is under the Catalogue of Guidance for Foreign Investment Industries, except the commodities listed in the Catalogue for Foreign Investment Projects of Import Commodities Not Exempted from Tax, shall be exempted from customs duties and value-added taxes in the linkage of imports.
10. An industry or a project with advantages, upon approval by the state competent authorities, can enjoy the preferential policies and corresponding special offers tailor-made for the projects encouraged under the Catalogue of Guidance for Foreign Investment Industries.
(Issued by Changchun Municipal Bureau of Foreign Trade and Economic Cooperation on January 1, 2003)