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The foreign-funded enterprises pay income taxes at 33%.
The foreign-funded enterprises located in the special zones pay income taxes at 17%.
The foreign-funded enterprises in Laishan District pay income taxes at 24%.
The manufacturing foreign-funded enterprises with more than 10 years of actual managing, from the time they get profits, are free from income tax for the first and the second years, and from the third to the fifth year, they only pay half of their income tax. The projects of exploiting petroleum, natural gas and rare metals are exceptions, and for these projects the State Council has regulations.
For the export-oriented foreign-funded enterprises, after the income tax-free period expires, they can be exempted from 50% of their imcome tax, if their yearly export value occupies over 70% of the whole year. If the tax rate is lower than 10% after the deduction, the tax is levied according to 10%.
When the foreign investor uses the after-tax profits for reinvesting and increasing registered capital, or investing in other foreign-funded enterprises and the managing term of the foreign enterprises is less than 5 years, 40% of the income tax for the profits used for reinvesting can get returned after the application of the enterprises is approved by the Tax Authority.
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