6.Technologically advanced foreign-funded enterprises may, upon the expiration of the tax exemption and reduction period, enjoy a further 50 percent reduction in enterprise income tax for three more years. The tax rate shall not lower than 10%.
7.Any foreign investor of a foreign-funded enterprise that reinvests its share of profit obtained from the enterprise directly into that enterprise by increasing its registered capital. Or uses the profit as capital investment to establish another enterprise to operate for a period of not less than five years shall, upon approval by the tax authorities of an application filed by the investor, being refunded 40 percent of the income tax already paid on the reinvested amount. If the reinvestment is made to establish or expand an export-oriented or technologically advanced enterprise that is to operate for a period of not less than five years, the refund may be 100 percent of the income tax already paid on the reinvested amount.
8.Any foreign investor shall be granted exemption from income tax on the profit he has obtained from the enterprise he has invested in.
9.Foreign-funded enterprises which are established in Hunan Provincial new and high technology industries development zones, approved by the State Council and which are officially recognized as high and new technology-intensive enterprises may pay income tax at the reduced rate of 15 percent.
10.Any foreign-funded enterprises involving in promoted projects on the Guideline of Foreign Investment Industries Encouraging Foreign Investment, which stipulated in Notice of the State Council, May enjoy tax reimbursementof value-added tax subject to relevant regulations in the events of purchased Chinese equipment within total investment. The imported equipment for self-use in the total investment volume may enjoy exemption from customs duty and import link value-added tax (excluding the commodities in the Catalogue of Import Commodities without Exemption from Customs Duty for Foreign-funded Enterprises).
11.Any foreign enterprises may enjoy exemption of sales tax on technical transfer to foreign-funded enterprises in Hunan. With approval of relevant taxation authorities of the State Council, any foreign enterprises may enjoy exemption of income tax on advanced know-how transfer of preferential transfer. Any foreign enterprises may enjoy exemption of sales tax on gained technical transfer.
12.With approval of provincial relevant taxation authorities, any foreign enterprises that have an expense increase of 10%(or over 10%) on technical development may be allowed to take 50% of expense for technical development as tax payable.
13.Common taxpayers shall pay 17% value-added tax to sell their self-produced software before 2010 and might be refunded 3% over the practical tax.
14.Common taxpayers shall pay 17% value-added tax to sell their self-produced molectron (including single-crystal silicon slice) before 2010 and might be refunded 6% over the practical tax.
15.Any foreign-funded enterprises engaged in energy, transportation (freight transport) and basic facilities of harbor might be allowed a 15% reduction of the amount of income tax payable.
16.With check and approval made by provincial relevant financial or tax authorities or higher level organ according to relevant state regulation of taxation, Chinese and foreign cooperators may withdraw investment on joint venture before mature date of cooperation when all fixed assets should be turned over to Chinese partners. |
