Tax Policy

Ministry of Finance State Administration of Taxation

 Finance and tax [2014] No. 26
  Notice of Ministry of Finance and State Administration of Taxation on the Corporate Income Tax Preferential Policies and Preferential Directory in Guangdong Hengqin New Area, Fujian Pingtan Comprehensive Experimental Zone, Shenzhen Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone  
  Guangdong Province, Fujian Province, Shenzhen Municipal Finance Department (Committee), State Administration of Taxation, Local Taxation Bureau,In accordance with the relevant approval of the State Council, the preferential directory of corporate income tax in Guangdong Hengqin New Area, Fujian Pingtan Comprehensive Experimental Zone, Shenzhen Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone is hereby published, and relevant corporate income tax policies are clarified as follow:
  Article 1 The encouraged industrial enterprises set up in Hengqin New Area, Pingtan Comprehensive Experimental Zone, Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone will be exempted from the corporate income tax by a reduction of 15%.
  Above-mentioned encouraged industrial enterprises as referred to in this circular represent enterprises which take industrial projects specified in local “Corporate Income Tax Preferential Directory” as main business with main business income accounted for more than 70% of total corporate revenue. 
  Above-mentioned total revenue shall mean total revenue mentioned in Article 6 of “Enterprise Income Tax Law of the People’s Republic of China”. 
  Article 2 If the enterprises respectively establish institutions inside and outside preferential area, only proceeds from institutions established in preferential are applicable to the enterprise income tax preferential rate of 15%. When determining whether institutions in preferential area are eligible, it is ascertained by whether indexes of institutions established in preferential area subject to the conditions stipulated in Article 1 of this Notice, neglecting factors of institutions established outside preferential area.
  Article 3 Enterprises which not only conform to the preferential term of the reduced rate of 15% corporate income tax specified in this Notice, but also comply with The Corporate Income Tax Law and its implementing regulations of the People’s Republic of China and other tax incentives as prescribed by the State Council, can enjoy preferential policies at the same time; Enterprises met the preferential policies of other tax incentives, can choose the most favorable tax rates; Enterprises involving halving income tax preferential policy of regular reduction, shall be levied half of taxable corporate income tax in accordance with statutory tax rate of 25%.
  Article 4 Hengqin New Are mentioned in Article 1 of this notice shall mean the scope of Hengqin Island planned in “Hengqin Overall Development Planning” which approved by the State Council on August, 2009; Pingtan Comprehensive Experimental Zone shall mean the scope of Pingtan Comprehensive Experimental Zone planned in “Pingtan Comprehensive Experimental Zone Overall Development Planning” which approved by the State Council on November, 2011; Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone shall mean the scope of Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone planned in “Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone Overall Development Planning” which approved by the State Council on August, 2010.
  Article 5 If it is difficult to define whether enterprise main business belong to the scope of “Corporate Income Tax Preferential Directory”, tax authority shall require enterprises to provide documentary evidence issued by related administrative departments at provincial (including deputy provincial) level or authorized administrative departments on a lower level. 
  Article 6 This Notice is effective from January 1, 2014 to December 31, 2020.
  Appendix:
 1. Corporate Income Tax Preferential Directory in Hengqin New Area
 2. Corporate Income Tax Preferential Directory in Pingtan Comprehensive Experimental Zone
 3. Corporate Income Tax Preferential Directory in Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone