Preferential tax policies for different kinds of enterprises
Preferential tax policies for Software industry
-
CIT Preferential Policy: Two-year CIT exemption followed by a three-year 50% reduction
-
VAT Preferential Policy: Partly tax refund upon collection
-
High-tech enterprises Preferential Policy: CIT is levied at a reduced rate of 15%
-
Advanced technology service enterprises: CIT is levied at a reduced rate of 15%
-
Employee training expenses: According to the actual amount, it is fully deductible in taxable income
-
R&D expenses: It is deductible in 150% of its amount
Regulations for the preferential policies above：
《Notification about the enterprise income tax preferential policies》(Caishui [2008]No.1)
《Notification on the preferential tax policies matters approved by Financial Ministry and Administration of Taxation》(Caishui [2009]No.69)
《Notification regarding tax policies issues for Hi-tech service enterprises approved by Administration of Taxation, Ministry of Commerce , Ministry of Science and Technology and National Development and Reform Commission 》(Caishui [2010]No.65)
Preferential tax policies for Integrated Circuit Design industry
-
Can enjoy the same preferential tax policies as Software industry
Regulations for preferential policies above：
《Notification on income tax preferential policies for enterprises》(Caishui [2008]No.1)
Preferential tax policies for Small profit enterprise
-
CIT Preferential Policy: For small profit enterprises with annual taxable profit less than RMB 30,000(included) 20% rate of CIT is taxable for 50% of income.
Regulations for preferential policies above：
《 Notification on preferential tax policies for small profit enterprises approved by Financial Ministry and Administration of Taxation 》(Caishui [2009]No.133)
Tax incentives for Animation industry
-
CIT Preferential policy: Independent animation development, designed, and production of animation products can apply for preferential CIT policies implemented by Government to encourage software development.
-
VAT Preferential policy: VAT is levied on the actual tax burden of 3% and exceeding partial tax burden will be refunded upon collection. If a taxpayer independently develop and produce animation software than enterprise with levy 17% of VAT as a general taxpayer..
-
Import VAT duty and concessions of the Custom: Implemented by the relevant departments of the State Council, anime enterprises with independent development, production of animation products, required to import merchandise can enjoy exemption from import duty and import VAT preferential policies.
Regulations for preferential policies above：
《Notification on preferential tax policies to sustain animation industry development approved by Financial Ministry and Administration of Taxation 》(Caishui [2009]No.65)
Preferential tax policies for energy saving and emission reduction projects
-
Business tax Preferential Policies: Temporary exemption from business tax collection for energy performance contracting project implemented by eligible energy-saving service company and providing related taxable service.
-
VAT Preferential Policies: Temporary exemption from VAT collection for energy performance contracting project implemented by eligible energy-saving service company and selling related taxable goods to energy consumption enterprise.
-
CIT Preferential Policies: Two-year CIT exemption followed by a three-year 50% reduction for eligible energy-saving service company
Regulations for preferential policies above：
《Notification on VAT policy for comprehensive utilization of the resources and other products approved by Financial Ministry and Administration of Taxation》(Caishui [2008]No.156)
《Notification on CIT preferential directory on released energy and water conservation projects for environmental protection enterprises approved by Financial Ministry, Administration of Taxation and National Development and Reform Commission 》(Caishui [2009]No.166)
If you your enterprise operate in other industries you might be applicable for VAT (Value Added Tax) rates. Here are different rates for VAT taxpayers.
-
Sales of goods 17%
-
Movable property leasing 17%
-
Transportation services 11%
-
R&D and technology services, Information technology services, Cultural and creative services, Logistics auxiliary services and Authentication &consulting services 6%