Shenzhen Company Registration Service
Hotline: 86-755-82143348, Email:tannet-solution@hotmail.com
1. Favorable Policies for General Industries in Shenzhen
A. For foreign-invested enterprises, corporate income tax rate is decreased from the original 30% down to the present 15%, while the local income tax levied at the rate of 3% is exempted.
B. Foreign-invested manufacturing enterprises can enjoy 2 years of corporate income tax exemption and half reduction for the ensuing 3 years according to the regulations of the tax law. Certified export-oriented enterprises at the expiration of tax exemption and reduction period enjoy a reduced rate of 10% for corporate income tax provided the export volume accounts for 70% or above of the total industrial output. Certified manufacturing enterprises using state-of-the-art technologies at the expiration of tax exemption and reduction period are entitled to a reduced tax rate of 10% for a 3-year extension.
C. Half of the land use fee for the land for industrial use utilized by certified export-oriented enterprises will be exempted. Half of the land use fee for the certified enterprises using state-of-the-art technologies will be exempted for 5 years.
2. Favorable Policies for Integrated circuits industry
A. For integrated circuits manufacturing enterprises, from their being certified until the end of 2010, simultaneous levy and refund will be applied to the part exceeding 6% of the total VAT paid by integrated circuit manufacturers that are general taxpayers of VAT at the statutory tax rate of 17% for the sales of self-produced integrated circuit products. The refunded tax shall be used by the enterprises for R&D of IC products and expanded reproduction, and shall not be subject to the levy of corporate income tax.
B. Accelerated depreciation can be applied to the production equipment of IC manufacturers. The shortest depreciation term of the production equipment of IC manufacturers can be three years after being approved by authoritative organizations in case of domestically-invested enterprises, and by the State Administration of Taxation in case of joint-venture or exclusively foreign-invested enterprises.
C. For the preferential tax policies applied to the IC manufacturing enterprises set up in Shenzhen, please refer to those applied to the foreign-invested enterprises engaged in construction of ports, wharves, energy and traffic projects with a duration of over 15 years, namely, these enterprises can enjoy 5 years of corporate income tax exemption from the profit-making year and half reduction for the ensuing 5 years upon enterprise application and authorization by taxation authorities.
D. IC manufacturing enterprises can set aside 15% of its yearly net sales as R&D fee. If the R&D fee drawn is not used up in the current year, the balance may be carried over to the next year. If the investment of an enterprise in R&D exceeds the amount of R&D fee drawn, the exceeding part may be stated as R&D expenses.
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E. Self-use raw materials and consumables for production imported by integrated-circuit manufacturing enterprises are exempt from tariff and import-related VAT.
3. Favorable Policies for Software industry in Shenzhen
A. By 2010, simultaneous levy and refund will be applied to the part exceeding 3% of the actual VAT paid by the general taxpayers of VAT at the statutory tax rate of 17% for the sales of self-produced software products. The refunded tax shall be used by the enterprises for R&D of software products and expanded reproduction, and shall not be subject to the levy of corporate income tax.
If the general taxpayers of VAT export products of localized transformation such as conversion of imported software, the exported software may enjoy the simultaneous levy and refund policy according to the standards for self developed and produced software products.
B. Certified new software enterprises may enjoy 2 years of corporate income tax exemption from the profit-making year and half reduction for the ensuing 3 years. Software enterprises included in the country's planning or key software enterprises defined by provincial and municipal governments enjoy 5 years of corporate income tax exemption and half reduction for the ensuing 5 years. For the corporate income tax paid for the third to fifth year which is levied at half reduced rate, the municipal financial authority shall provide corresponding allowance.
C. The pay and training expenditures of software manufacturing enterprises can be deducted from the taxable income according to the actual sum.
D. If key software enterprises included in the country's planning did not enjoy tax incentives in the current year, the corporate income tax shall be levied at the deducted rate of 10%.
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Shenzhen ATAHK offers investors all over the world one-stop and professional investment advisory and consulting services. Our services range from Shenzhen company registration to Shenzhen company follow-up, as well as trademark registration and visa application and etc. If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Shenzhen hotline at 86-755-82143422, or emailing to anitayao@citilinkia.com