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fengxian
If the enterprises invested in Fengxian is engaged in production, R&D and marketing of the electrical power transmission and distribution industry, 70% of the income tax (individual income tax exclusive) and 40% of VAT and sales tax belonged to the district government will be returned in the first three years; the small enterprise loan guarantee center in the district can offer credit guarantee with 1:1 to improve the financing ability of enterprises.
The private-owned enterprises invested in Fengxian will enjoy preferential policies that technical innovation allowances will be given and a bonus equal to 50% of the income tax belonged to the district government.
Enterprise whose investment of fixed assets in Fengxian is above 50 million yuan; wholly-owned, holding or relatively holding enterprise that is registered in Fengxian with a registered capital more than 100 million yuan; enterprise that is registered in Fengxian, if its sales has exceeded 500 million yuan for three consecutive years and is confirmed by Shanghai Municipal Government as large enterprise, will enjoy preferential policies such as applying for permanent residence of Shanghai, solving the admission to school for their children.
The newly established productive enterprise with foreign investment, if it has a managerial period of more than ten years, will enjoy the preferential income tax policy of "exempt in first two years, halve from the third year" from the profit-making year as stipulated in the state regulations and a bonus equal to 50% of the income tax belonged to the district government.
If the foreign investors of the foreign-invested enterprise use the profits earned to invest directly on the same enterprise with a managerial period no less than five years, 40% of the total income taxation for the reinvested money will be returned under the approval of the local tax bureau after having received the application from the foreign investor. If the foreign investors of the foreign-invested enterprise use the profits earned to reinvest directly in China for the extension of export-oriented enterprises or enterprises based on advanced technology, with a managerial period no less than five years, the whole amount of the enterprise income taxation for the reinvested money will be returned under the approval of the local tax bureau after having received the application from the foreign investor.
If the foreign-invested enterprise engaged in Encouraged foreign-invested projects, which are listed into the Catalogue for the Guidance of Foreign Investment Industries approved by the State Council, increase the registered capital by more than 60 million dollars, or more than 15 million dollars and more than 50% of the original registered capital, with a managerial period no less than five years, the income tax of the increased investment will be “exempted in first two years and halve from the third year" under the approval of the local tax bureau after having received the application from the foreign investor.
According to the government’s regulations, the foreign-invested enterprise can enjoy following benefits if it has applied to be confirmed as “export-oriented enterprise” or “enterprise based on advanced technology” and has been assessed as qualified :
A.After the state-granted period expired, during which it can enjoy reduction of or exemption from enterprise income tax, the export-oriented enterprise can enjoy 50% allowances for enterprise income tax on the present tax rate if that year’s amount of products exported occupies more than 70%of the total.
B.After the state-granted period expired, during which it can enjoy 50% allowances from enterprise income tax, enterprise based on advanced technology can enjoy another three years of the same benefit.
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