Catalogue of Superior Industries in Central West Part for Foreign Investment (approved by the State Council) Hunan Part:
1.Store, fresh keeping and processing of grain, vegetable, fruit, animals and birds products and aquatic products
2.Afforestation and introducing of improved forest
3.Comprehensive utilization of bamboo resource
4.Upgrading project of red soil
5.Reasonable development, utilization and protection of water resource
6.Production of high-grade daily porcelain
7.Ramie textile and products
8.Construction and operation of highway, independent bridge and tunnel
9.Application know-how, upgrading of coal exploitation and production of coal products
10.Mining and dressing of steel and manganese mine and deep processing of manganese products
11.Design and capsulation of large-sized integrate circuit
12.Production of semi-finished products and finished products of Chinese traditional medicine and Chinese patent medicine
Preferential Taxation Policies:
1.Any foreign-funded enterprises of a production nature scheduled to operate for a period of not less than 10 years shall, from the initial year of profit making, be exempted from income tax in the first and second years and allowed a 50 percent reduction in the third to fifth years.
2.Any foreign-funded enterprises, involving in promoted projects and limited B project stipulated in Guideline of Foreign Investment Industries, which are jointly promulgated by State Development and Reform Commission and State Ministry of Commerce, upon approval of the State Council, may be allowed a 15% reduction of the amount of income tax payable for a period of another three years following the expiration of the period for tax exemption and reduction.
3.Any foreign-funded enterprises involving in promoted projects which are approved by the State Council may be allowed a 15% reduction of the amount of income tax payable for a period of another three years following the expiration of the period for tax exemption and reduction.
4.Any foreign-funded enterprise which is engaged in agriculture, forestry or animal husbandry and any other foreign-funded enterprise which is established in remote underdeveloped areas may, upon approval by the competent department for tax affairs under the State Council of an application filed by the enterprise, be allowed a 15 to 30 percent reduction of the amount of income tax payable for a period of another ten years following the expiration of the period for tax exemption and reduction.
5.Export-oriented foreign-funded enterprises may, upon the expiration of the tax exemption and reduction period, enjoy a further 50 percent reduction in enterprise income tax if the value of their export products of the year exceeds 70 percent of the total value of products of the year. The tax rate shall not lower than 10%. |
