State Taxation Bureau Preferential Policy For Hi-Tech Enterprises In The State Hi-Tech Development Zones

1.The enterprise income tax of the identified hi-tech enterprises shall be reduced and levied at 15% tax rate beginning from the tax year that the date of identification belongs.

2.The enterprise income tax of newly established hi-tech enterprises shall be exempt for 2 years from the year of productive operation.

3.Productive foreign investment enterprises identified as of hi-tech with productive operation period over 10 years shall be exempt from income tax for the 1st and the 2nd years beginning from the profit-making year and shall enjoy half reduction of income tax for the 3rd,4th and the 5th years.

4.When the tax year that the date which the foreign investment enterprise identified as of hi-tech belongs is after the profit-making year,the enterprise is entitled to enjoy preferential treatment of exempt and reduction for the remainning years of its applicable exempt and reduction periods.When the enterprise is identified as of hi-tech of new tech after the termination of the exempt and reduction periods,it shall not retroactively enjoy relevant preferential treatment of regular exempt and reduction periods.

5.To support and encourage the development of tertiary industry,reduction or exempt of income tax can be practiced for a designated period in accordance with the industry policy.