The Ministry of Finance and State Administration of Taxation recently issued a Circular regarding the preferential enterprise income tax policies that shall apply to some type of companies established Guangdong Hengqin New Area, Fujian Pingtan Comprehensive Experimental Area and Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.

According to the Circular, ‘encouraged’ enterprises established in above areas can enjoy a reduced tax rate of 15% for the payment of corporate income tax in the period from 1 January 2014 to 31 December 2020, where more than 70% of its total revenue coming from the main activity for which the Company has been established.

The Circular defines ‘encouraged enterprise’ as an enterprise that focuses on business listed in the items of industries specified in the Catalogue of Industries, and shall include around 74 type of hi-tech companies, 18 of service companies, 10 type of companies operating in agricultural field and 9 type of companies in the environmental field.

Digiprove sealCopyright secured by Digiprove © 2014 ICL Consulting Limited

Leave a reply