Preferential Policies for Foreign Investment in High-tech Business

In order to encourage foreign investment enterprises to introduce advanced technology and equipment, promote industrial restructuring and technological progress, maintain sustained, rapid and healthy development, there is an encouragement foreign investment preferential policies for those in high-tech business areas, it includes:-

  • (A) For those which have been established to encourage foreign-invested enterprises, foreign-invested research and development centers, advanced technology and export-oriented foreign business investment in technological upgrading enterprises, in the original production and business scope as approved by the importing country that cannot produce or cannot meet the required performance, self-use equipment and supporting technology, accessories and spare parts, according to the relevant provisions are of exemption from import duties and import value-added tax.
  • (B) For foreign-invested enterprises which engage in the production of "national high-tech products catalog" products and equipment that imported for their own use and in accordance with the contract, equipment and technology, imported parts, spare parts according to the relevant provisions, they are of exemption from import duties and import VAT .
  • (C) The introduction of foreign-invested enterprises that belong to the "National High-tech Products Catalog" listed in the advanced technology, according to the contract to the environment outside the paid software fees, customs duties and import VAT.
  • (D) Foreign-invested research and development centers shall within the total investment performance of the importing country that cannot produce or cannot meet the needs of their own equipment and its supporting technology, accessories and spare parts, according to the relevant provisions, are of exemption from import duties and import VAT.
  • (E) The inclusion of "China's high-tech products export catalog" products, where the export tax, rebate rate, tax rate that has not reach the state SAT shall be the approved products after the export, according to the tax rates and the current export tax rebate regulates for refund.
  • (F) Belongs to enterprises with foreign investment encouraged within the total investment purchase domestic equipment, such as the case of imported equipment are exempted from import tax range, a full refund of domestic equipment VAT.
  • (G) Foreign-invested enterprises in the technological transformation of the national industrial policy and the production of high-tech products, the procurement of domestically equipment shall in accordance with the relevant provisions of the enterprise for income tax.
  • (H) For foreign-invested enterprises, foreign-invested R & D centers, foreign enterprises and foreign individuals that engage in technology transfer, technology development industry services and related technical consulting, technology services business achieve revenue which is exempted from sales tax.
  • (I) Foreign- invested enterprises in technology development costs increased by 10% over the previous year and above, by tax authorities, it allows open press technology by sending a fee of 50% of the actual amount, offset the annual taxable income.
  • (J) Foreign-invested enterprises and foreign enterprises funded research institutions and universities unaffiliated research and development funds, all these refer to the "Chinese people foreign Investment and Foreign Enterprise Income Tax Law” approach that concerns about the tax treatment of donations which is based on GSEs industry to measure the amount of taxable income when fully charged.