1¡¢ What
are the relevant privileged policies that
foreign investors could enjoy if they invest
or set up an enterprise in Shenzhen?
2¡¢ Are the privileged policies
different inside and outside of the special
economic zones and among different districts?
3¡¢ Are there any special privileged
policies for Shenzhen High-tech Industrial
Park? What¡¯s the condition of admittance?
4¡¢ What are the special privileged
policies for Shenzhen Grand Industrial Zone?
5¡¢ Are there any special privileged
policies for Shenzhen Logistics Park?
6¡¢ What are the privileged
policies for Shenzhen Free Trade Zones?
7¡¢ Where can the newest trade
policies for foreign investment be accessed?
8¡¢ What are the privileged
policies for foreigners to invest or set
up financial institutions?
9¡¢ What are the privileged
policies in Shenzhen for initial investment?
What are the requirements for entering the
trade of initial investment?
10¡¢ What are the privileged
policies in Shenzhen to stimulate the technological
innovation and high-tech industries?
11¡¢ What are the privileged
policies in Shenzhen for setting up integrated
circuit enterprises? What¡¯s the condition
for attestation?
12¡¢ What are the privileged
policies in Shenzhen for setting up the
software enterprises? What¡¯s the condition
for attestation?
13¡¢ What are the privileged
policies for the convergence base of the
investment industry?
1. What are the relevant
privileged policies that foreigners could
enjoy if they invest or set up an enterprise
in Shenzhen?
The relevant privileged policies that foreigners
could enjoy if they invest or set up an
enterprise in Shenzhen are as follows:
Reduction of corporate income tax
For foreign-invested enterprises, the income
tax rate is reduced from the original thirty
percent down to the present fifteen percent,
and the local income tax levied at three
percent is exempted.
Foreign invested production enterprises
with an operating duration of over ten years
may enjoy, from the profit-making year,
the exemption of the income tax for the
first and second year and half reduction
for the ensuing three years.
According to the regulations of the tax
law, foreign invested production enterprises
can enjoy two years of income tax exemption
and half reduction for the ensuing three
years. Certified export-oriented enterprises
at the expiration of income tax exemption
& reduction can enjoy a ten percent
reduction of the income tax provided the
export volume accounts for seventy percent
or above of the total industrial output.
Certified technologically-advanced enterprises
at the expiration of tax exemption and reduction
are entitled to a ten percent reduction
of the income tax for a 3-year extension.
The foreign-invested enterprises engaged
in the service trade with an investment
of over USD 5 million and operating duration
of over ten years can enjoy, from the profit-making
year, one year of the income tax exemption
and half reduction for the ensuing two years.
Chinese-foreign equity joint ventures engaged
in port & dock construction with operating
period of over fifteen years may enjoy,
from profit-making year, the income tax
exemption for the first five years and half
reduction thereof for ensuing five years
after their applications are approved.
Technologically-advanced enterprises, if
still certified as technologically-advanced
enterprises at the expiration of the income
tax exemption & reduction, may enjoy
half reduction of the income tax for another
three years.
Foreign-invested enterprises, if purchasing
the domestic equipments as stipulated, may
enjoy the exemption of the income tax.
Privilege for re-investment
Foreign-invested enterprises, if with their
earnings either reinvest directly or set
up another foreign investment enterprise
with an operating duration of no less than
five years, may enjoy a forty percent reimbursement
of the income tax after the applications
are approved.
Foreign investors, if reinvesting directly
in setting up or expanding the export-oriented
enterprises or technologically-advanced
enterprises, may enjoy a full reimbursement
of the income tax for the re-investment.
Reduction of turnover tax
As stipulated in the joint venture contract,
machinery, accessories and other materials
either as investment contribution of one
part of the joint venture or imported within
the total investment amount of a foreign
investment enterprise can enjoy the exemption
of the VAT for the importing.
Raw materials imported by the foreign-invested
enterprises for the production of the exports
may enjoy the exemption of the VAT;
Dutiable commodities produced by the foreign-invested
enterprises for direct export may enjoy
the exemption of the consumption tax.
Products of the foreign-invested enterprises
for direct export may enjoy zero VAT, i.e.
the exemption of the VAT for the last tache.
For the foreign-invested enterprises in
Shenzhen Special Economic Zone, the products
produced and distributed in the Special
Zone may enjoy the exemption of the VAT
for the industrial tache.
Tariff preference
Foreign-invested enterprises may enjoy the
special exemption or reduction of tariff
in the following aspects:
A. The imported production equipments and
construction materials, etc. as an investment
or additional investment;
B. The imported raw materials, primary parts
and packing materials, etc. for the production
of the exports.
C. Cargoes purchased for export approved
may enjoy the tax exemption but not tax
reimbursement; cargoes produced by a company,
if exported under the agency of the foreign
investment enterprise by which this company
is invested, may enjoy the tax reimbursement.
D. The foreign-invested enterprises, if
purchasing the cargoes not related to the
administration of export quota and export
license for export within their business
boundaries, may enjoy the export reimbursement
in accordance with the existing relevant
stipulations on the purchase & export
of the export enterprises.
Enterprise services
The certified large-sized enterprises or
other dominant enterprises supported by
Shenzhen Municipality may enjoy the convenient
direct service with the concrete service
projects as follows:
A. The related functional departments of
Shenzhen Municipality shall set up a window
to serve large-sized enterprises by providing
them with services concerning business application,
consultation, guidance, supervision, and
complaint acceptance, etc.
B. The functional departments shall appoint
responsible person to coordinate the services
to be provided to large-sized enterprises.
C. The Municipality shall appoint responsible
person to coordinate the services to be
provided to large-sized enterprises spanning
the functional departments of the government.
D. For the projects to be approved by the
country, Shenzhen Bureau of Trade &
Industry and Shenzhen Municipal Development
& Reform Bureau shall send responsible
persons to the Ministry of Commerce and
the State Development & Reform Commission
to assist the enterprises handling related
approval procedures.
Others
The certified export-oriented enterprises
may enjoy the half reduction of ¡°the land-use
fees¡± for industrial estate; the certified
technologically-advanced enterprises may
enjoy the half reduction of the land-use
fees for 5 years.
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2. Are the privileged
policies different inside and outside the
special economic zones and among different
districts?
The privileged policies inside and outside
the special economic zone and among different
districts are more or less the same in such
aspect as tax revenue, except a slight difference
in land cession price and plant rent, etc.
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3. Are there any
special privileged policies for Shenzhen
High-tech Industrial Park? What¡¯s the condition
of admittance?
Privileged policies
A. Shenzhen High-tech Industrial Park enjoys
all the privileged policies provided by
the country, Guangdong Province and Shenzhen
Municpality for the development of high-tech
industries. The high-tech enterprises in
the High-tech Industrial Park may choose
the most suitable privileged policies above
mentioned according to their actual situations.
B. Shenzhen Virtual University Park is established
in the High-tech Industrial Park. The Municipal
Government shall arrange fund to support
its development and provide the ingoing
universities with office facilities and
favorable conditions for scientific research,
teaching and living.
C. Shenzhen Municipal Government shall encourage
the enterprises, universities and scientific
research institutions to establish the enterprises
and institutions dealing in the technological
innovation or engage in the R & D of
the technological innovation in the High-tech
Industrial Park by the financial support
on their innovative activities.
D. Shenzhen Municipal Government shall encourage
the enterprises, universities, scientific
research institutions and other organizations
or individuals to establish initial service
institutions (incubator) for fostering small
enterprises at the early foundation or joint
development in the High-tech Industrial
Park, which may enjoy the privileged policies
provided by Shenzhen Municipality to support
the high-tech industries.
E. The credit assurance institutions established
by Shenzhen Municipal Government shall provide
the credit reference (mainly by financing
reference) for the medium and small-sized
enterprises in the High-tech Industrial
Park.
F. For other privileged policies please
log on the Shenzhen High-Tech Industrial
Park website: http://www.ship.gov.cn
The enterprises or projects applying for
the land and factory buildings in the High-tech
Industrial Park shall conform to the industrial
development layout thereof with corresponding
financial reference, a clean capital resource
and one of the following conditions:
A. The high-tech enterprises or projects
certified by the science & technology
administrative department of the Municipal
Government;
B. The renowned high-tech enterprises from
home and abroad;
C. The enterprises or institutions providing
supportive service for the high-tech enterprises
in the High-tech Industrial Park.
The organizations or individuals without
the above mentioned qualifications, if applying
for entering the High-tech Industrial Park,
shall engage in the R & D, production
management and technical services of the
products within the high-tech product catalogue
of Shenzhen Municipality.
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4. Are there any
special privileged policies for Shenzhen
Grand Industrial Zone?
The unique privileged policies for Shenzhen
Grand Industrial Zone are follows:
A. The land cession may enjoy a low-price
policy together with the exemption of the
civic infrastructure fee; for the land price
of the high-tech projects, further preferences
are available;
B. The water, electricity and gas consumption
for export production by the production
enterprises in the export processing district
shall enjoy the reimbursement of the VAT
thereof.
C. For the export processing of cargoes
processed or produced in the export processing
district, where the cargoes are for direct
export or distributed to the enterprises
thereof, the exemption of the VAT and consumption
tax is available.
D. Within a certain term, the integrated
circuit products (including the single-crystal
silicon chips) and the software products
developed & produced independently and
distributed to the general taxpayers of
the VAT, after levied at the statutory tax
rate of seventeen percent, may enjoy the
simultaneous levying and refunding for the
part of which the actual VAT payment has
exceeded three percent.
E. For other privileged policies, please
log on the Grand Industrial Zone website:
http://www.szgiz.gov.cn
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5. What are the
special privileged policies for Shenzhen
Logistics Park?
For the logistics distribution centers and
logistics enterprises founded in Shenzhen¡¯s
six logistics parks, the price of the new
land for construction may enjoy a twenty
percent discount; for the projects in Sungang
Logistics Park, the discount is fifty percent
for trade or storage industry respectively;
for the other five Logistics Parks, the
discount is twenty-five percent for trade
and seventy-five percent for storage. The
land price for logistics distribution projects
can be paid by installments with a maximum
duration of three years. For the electricity
consumption of large-scaled refrigerated
warehouses and distribution centers in enterprises
dealing in commercial circulation trade,
the charge can be collected as per the standards
for industrial electricity consumption.
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6. What are the
privileged policies for Shenzhen Free Trade
Zone?
There are three free trade zones in Shenzhen,
i.e. Futian, Yantian and Shatoujiao, which
not only enjoy the special policies provided
by the central government for the national
free trade zones and the special economic
zones, but also owns the unique geographic
superiority, i.e. situating at the special
zone and adjacent to Hong Kong. For Futian
Free Trade Zone in particular, there is
an exclusive No. 1 direct passage to Hong
Kong. The main privileged policies for Shenzhen
free trade zones are as follows:
Tax Revenue
For the production enterprises, the income
tax is levied at fifteen percent, for those
with an operating duration of over ten years,
the income tax is exempted for two years
from the profit-making year, and the tariff,
VAT and consumption tax are exempted for
the imported equipment, raw materials and
office articles. Trading within the zone
and product export may enjoy the exemption
of the VAT. The enterprises in the free
trade zones may not enjoy the policy of
¡°tax exemption, reduction and reimbursement¡±.
Products produced by the investment enterprises
in the free trade zones and distributed
thereof, may enjoy the exemption of VAT
for the manufacturing tache.
Foreign Exchange:
The foreign exchange income can be settled
by will, which can be either deposited in
the district financial institutions or sold
to the designated district banks for foreign
exchange. Both the Chinese investment enterprises
and the foreign-invested enterprises may
open a foreign exchange account according
to related regulations; non-transaction
of export foreign exchange shall apply for
the procedure to cancel the import foreign
exchange; the foreign exchange administration
of the regular projects and that of a foreign
investment enterprise, shall be carried
out by the bank of deposit under the unified
terms as stipulated.
For other privileged policies, please log
on the website of free trade zone: http://www.szftz.gov.cn
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7. Where can the
newest trade policies for foreign investment
be accessed?
Along with China¡¯s entrance into WTO and
the outspread of the reform & opening,
China has gradually broadened the trade
scope of foreign investment, but there are
still some trades circumscribed or prohibited
for foreign investment. Therefore, foreign
investors planning to make a direct investment
in China shall consider firstly the policies
of the related trades while making their
investment plans.
Above all, prior notice shall be paid to
the Regulations on the Guidance of Foreign
Investment of the State Council and the
Industry Catalogue for the Guidance of Foreign
Investment issued by related functional
department.
Next, information of foreign investment
policies may be accessed on the websites
of the following governmental departments:
State Council¡¯s Legal System Office: http://www.chinalaw.gov.cn
Ministry of Commerce: http://www.mofcom.gov.cn
State Development & Reform Committee
http://www.sdpc.gov.cn
Shenzhen Development & Reform Bureau
http://www.szpb.gov.cn
Shenzhen Bureau of Trade & Industry:
http://www.szbti.gov.
INVEST SHENZHEN http://www.investshenzhen.gov.cn
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8. What are the
privileged policies for foreigners to invest
or set up financial institutions?
A. The large-scaled financial institutions
buying land for setting up their headquarters
or regional headquarters in Shenzhen, after
their applications are approved by the Municipal
Government, may enjoy land price preference
as per the market price, and obtain the
land-use right by means of protocol.
B. Financial institutions with their headquarters
or regional headquarters in Shenzhen may
enjoy a one-off financial subsidy of RMB
1,000/m2 for the office buildings newly
purchased;
C. Chinese-foreign equity banks or foreign
invested banks established in Shenzhen Economic
Special Zone with a total investment of
over USD$ 100 million and an operating duration
of over 10 years, from the profit-making
year, may enjoy 1 year of income tax exemption
and half reduction for the ensuing 2 years;
their income from financial business may
enjoy 5 years of sales tax exemption from
the opening day.
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9. What are the
privileged policies in Shenzhen for initial
investment? What are the requirements for
entering the trade of initial investment?
Initial investment is encouraged to foster
the initial investment market in Shenzhen.
Investors both home and abroad are welcome
to set up initial investment institutions
in Shenzhen City.
Privileged Policies
A. Those in compliance with the related
regulations may enjoy the privileged policies
for the high-tech enterprises.
B. Initial investment institutions may draw
risk compensation fund as per five percent
of the yearly gross income to compensate
for the investment losses of preceding years
and the current year;
C. For enterprises invested by initial capitals,
the share proportion of investment by high-tech
results may remain unrestricted, and a system
of income allocation among such intelligent
factors as technological bonus, share options
and annual payment, etc. is adopted.
Initial Investment Institutions
Initial investment institutions refer to
the civil bodies specializing in the initial
investment with their own assets, which
may take the form of limited companies,
joint corporations or limited partnerships,
etc. Applying for setting up an initial
investment institution shall conform to
the conditions as follows:
A. The investors have a good financial standing,
are designated to serve as directors and
senior managers, and pledge to observe the
related trade regulations;
B. Specializing in initial investment;
C. Having clear operating plans or investment
strategies;
D. Personnel responsible for the investment
business shall be qualified for the initial
investment;
E. Capital Requirements: For stock holding
corporations, the registered capital shall
be no less than RMB 50 million, for limited
liability companies, the registered capital
shall be no less than 30 million, and for
the limited partnership companies, the total
investment shall be no less than RMB 30
million.
F. To set up an initial investment institution,
all investment shall be paid in by monetary
fund.
Institution of Initial Investment Administration
Institutions of initial investment administration
refer to the civil bodies entrusted by initial
investment institutions to manage the investment
business and provide the administrative
services, which may take the form of limited
companies or joint corporations. Applying
for setting up an institution of initial
investment administration shall conform
to the conditions as follows:
A. Designated directors and senior managers,
besides having good credit and remarkable
professional record, shall pledge to observe
the related trade regulations;
B. Specializing in administration of the
investment business as entrusted by initial
investment institutions;
C. With complete institutions and systems
and personnel qualified for the initial
investment;
D. Capital requirements: For stock holding
corporations, the registered capital shall
be no less than RMB 30 million (foreign-invested
enterprises); for limited liability companies,
the registered capital shall be no less
than RMB 1 million.
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10. What are
the privileged policies in Shenzhen to stimulate
the technological innovation and high-tech
industries?
For the development of technological innovative
enterprises and high-tech enterprises, Shenzhen
Municipality has issued a series of policy-related
documents as extracted in the following:
Encouraging enterprises to set up engineering
technology R & D centers and post-doctorial
workstations. The Municipal Government shall
sponsor RMB 5 million to each certified
engineering technology R & D center
(corporate technology center) at the national
lever and RMB 3 million at the municipal
level. For every post-doctor entering the
workstations, a subsidy of RMB 50, 000 shall
be granted per year.
For each technology R & D institution
certified at the national or municipal level,
a subsidy of RMB 5 million or RMB 3 million
shall be granted respectively. For each
branch institution founded by the National
Engineering Center or the national level
key laboratories in Shenzhen, a subsidy
of RMB 3 million shall be given after authentication.
The Municipal Government shall arrange special
funds for construction of technological
enterprise incubators, and provide a one-off
subsidy for certified technological enterprise
incubators. The subsidy for each technological
enterprise incubator shall be twenty percent
of its total investment, and the maximum
sum shall be RMB 3 million.
Newly-certified high-tech production enterprises
may enjoy the exemption of income tax for
2 years and half reduction of income tax
for the ensuing 8 years. At the expiration
of the above-mentioned income tax exemption
& reduction, enterprises may enjoy a
ten percent reduction of income tax provided
the export value accounts for seventy-nine
percent or above of the production value
of the year after verified by the tax authority.
Certified high-tech transformed project
with independent intellectual property right
may enjoy the exemption of income tax and
sales tax and half reimbursement of VAT
for five years, and half reduction of income
tax and sales tax and half reimbursement
of VAT for the ensuing three years.
For new projects put into production by
high-tech enterprises after introducing,
digesting and absorbing the high-tech, whether
the enterprises enjoyed the income tax exemption
& reduction in the preceding years,
the income of the projects shall enjoy the
exemption of income tax for 3 years.
Shares rewarded or allocated to employees
by high-tech enterprises or high-tech projects,
once reinvested in the corporate production,
shall enjoy the exemption of individual
income tax; those already distributed or
remised shall be levied of individual income
tax as per the actual income.
Certified computer software with an annual
sales amount of RMB 10 million or above
shall enjoy a full reimbursement to the
part of newly-added VAT by installments
by the Municipal Financial Department in
3 years.
Supporting enterprises to strengthen the
R & D input. The actual R & D expenditures
of high-tech enterprises may be fully counted
into cost and, if increased by or above
ten percent than the preceding year and
conforming to the regulations in the tax
law, allowed to countervail the actual income
tax payment by fifty percent after approved
by the taxation authority. Key trial equipment
and test instruments purchased by enterprises
for the purpose of new technology development
or new products R & D, if the unit price
is below RMB 100,000, can be counted into
administrative expenses once and for all
or in batches. Those reaching the criteria
of fixed assets shall be handled alone,
and cannot be extracted for depreciation.
Special funds are established for overseas
students to start up their businesses. The
Municipal Government shall arrange an annual
fund of RMB 30 million to sponsor overseas
students to engage in R & D of high-tech
projects in Shenzhen.
The following encouraging policies will
be employed for overseas students to undertake
scientific research, investment and establishment
of all kinds of industries in Shenzhen:
A. Those engaging in scientific research
with research subjects certified by the
Municipal Technological Bureau as high-tech
projects can obtain one-off scientific research
startup subsidy of RMB 10, 000 - 15, 000;
B. Administrative authorities shall actively
support overseas students engaging in agency
services such as evaluation, consultation
and advising, or tertiary industries. Overseas
students shall enjoy privileged policies
for investments in domains except those
forbidden by the country.
C. In case of becoming a partner with patent
or non-patent technological results, the
evaluation of technological result can account
for twenty-five percent of the registered
capital, and the evaluation of high-tech
results can account for thirty-five percent
of the registered capital upon evaluation
by the Municipal Technological Bureau,.
Other forms can be undertaken if there are
additional agreements between the partners.
Various awards are set up with an annual
total of RMB 8 million thereof for people
who make great contribution to the development
of high-tech industry and create huge economic
benefits in Shenzhen.
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11. What are the
privileged policies in Shenzhen for setting
up integrated circuit enterprises? What¡¯s
the condition for attestation?
Privileged Policies
A. For integrated circuits (IC) manufacturing
enterprises, by the end of 2010, simultaneous
levy and refund will be applied to the part
exceeding six percent of the total VAT paid
by integrated circuit manufacturers that
are general taxpayers of VAT at the statutory
tax rate of seventeen percent for the sales
of self-produced integrated circuit products.
The refunded tax shall be used by the enterprises
for R&D of IC products and expanded
reproduction, and shall not be subject to
the levy of corporate income tax.
B. For the production equipments of the
IC manufacturers, the shortest depreciation
term may be three years after approval.
C. IC enterprises with an operating duration
of over fifteen years, from the profit-making
year, may enjoy the exemption of income
tax for five years and half reduction of
income tax for the ensuing five years upon
approval.
D. IC manufacturers can set aside fifteen
percent of its yearly net sales as fund
for R&D. If the R&D reserve is not
used up in the current year, the balance
may be carried on to the next year. If the
investment of an enterprise in R&D exceeds
the amount of R&D fund reserved, the
exceeding part may be stated as R&D
expenses.
E. Self-use raw materials and consumables
for production imported by IC manufacturers
are exempt from tariff and import-related
VAT.
F. IC technologies, complete set of production
equipment, equipment and apparatuses specially
for integrated circuit imported by IC manufacturers,
except for commodities listed in the Catalog
of Non-Tax-Free Imported Commodities for
Foreign-Invested Projects and the Catalog
of Non-Tax-Free Imported Commodities for
Domestically-Invested Projects stipulated
by the State Council's Guofa [1997] No.
37 Document, are exempt from tariff and
import-related VAT.
G. For IC manufacturing enterprises with
an investment of over RMB 8 billion or IC
line width less than 0.25um, the privileged
taxation policies for foreign-invested enterprises
engaged in energy and traffic prevail; the
imported self-use raw materials and consumables
for production shall be exempt from tariffs
and import-related VAT.
H. Shenzhen Integrated Circuit Industrial
Park is under planning with the first phase
of construction of 3-5 square kilometers.
Certified IC manufacturing enterprises within
the Park shall be exempt from the remuneration
for assignment of the right to the use of
land, municipal supporting facilities fees
and land development fees.
I. For domestic and senior level foreign
professional technical and managing personnel
introduced by IC manufacturers who purchases
commodity housing in Shenzhen City, the
payment for such housing may set off their
taxable income and the method of refund
after levy may be adopted.
J. Integrated circuit design enterprises
are regarded as software enterprises, and
shall enjoy the relevant taxation policies
for the software enterprises.
Attestation Conditions
IC manufacturers who set up the ultra large-scaled
pre-processing of integrated circuits in
Shenzhen with the investment amount over
RMB 8 billion or the line width of or less
than 0.25 micron may enjoy the privileged
policies of this stipulation.
Shenzhen Development & Reform Bureau
takes full charge of interpretation of the
privileged policies hereof.
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12. What are
the privileged policies in Shenzhen for
setting up software enterprises? What¡¯s
the condition for attestation?
Privileged Policy
A. By 2010, simultaneous levy and refund
shall be applied to the part exceeding three
percent of the actual VAT paid by the general
taxpayers of VAT at the statutory tax rate
of seventeen percent for the sales of self-produced
software products. The refunded tax shall
be used by the enterprises for R&D of
software products and expanded reproduction,
and shall not be subject to the levy of
corporate income tax.
If the general taxpayers of VAT export products
of localized transformation such as conversion
of imported software, the exported software
may enjoy the simultaneous levy and refund
policy according to the standards for self
developed and produced software products.
B. Certified new software enterprises may
enjoy, from the profit-making year, two
years of corporate income tax exemption
and half reduction for the ensuing three
years. Software enterprises included in
the national planning or key software enterprises
defined by provincial and municipal governments
shall enjoy five years of corporate income
tax exemption and half reduction for the
ensuing five years. For the corporate income
tax paid for the third to fifth year which
is levied at half reduced rate, the municipal
financial authority shall provide corresponding
allowance.
C. The salary and training expenditures
of software manufacturing enterprises can
be deducted from the taxable income according
to the actual sum.
D. If key software enterprises included
in the national planning did not enjoy tax
incentives in the current year, the corporate
income tax shall be levied at the deducted
rate of ten percent.
E. The self-use equipment and, according
to the contract, technologies (including
software), accessories and parts imported
together with the equipment by software
enterprises, except for listed in the Catalog
of Non-Tax-Free Imported Commodities for
Foreign-Invested Projects and the Catalog
of Non-Tax-Free Imported Commodities for
Domestically-Invested Projects, are exempt
from tariff and import-related VAT.
F. Software enterprises are encouraged to
pass international qualification certifications
such as GB/T19000-ISO9000 certification
or CMM certification. The Municipal Foreign
Trade Development Fund shall support those
enterprises that have passed international
qualification certification over CMM-2;
G. To establish the software enterprise
incubator. The government shall provide
supports for new software enterprises entering
the incubator with subsidy from special
fund for science and technology.
H. For software purchased by enterprises
or institutions, if the purchasing cost
attains the standard of fixed assets or
the software forms a part of intangible
assets, the software can be calculated according
to fixed assets or intangible assets. For
domestically-invested enterprises, this
shall be reported to the taxation authority
for approval; for the foreign-invested enterprises
with a total investment of over USD 30 million,
this shall be reported to the State Administration
of Taxation for approval; and for the foreign-invested
enterprises with an investment of less than
USD 30 million, its depreciation or amortization
duration may be shortened to a minimum of
two years upon examination and approval
of the directly administrative tax authority.
Attestation Conditions:
A. Corporate legal person established as
per the related law of China;
B. Those taking computer software development
& production, system integration, application
service and other related technical services
for the specialized business and main income;
C. Those having more than one software products
developed by themselves or with independent
intellectual property rights, or providing
such technical services as computer information
system integration, etc. certified by the
qualification grade;
D. Those with the proportion of technical
personnel engaging in software development
and technical services no less than fifty
percent of the total staff;
E. Those with necessary technical equipments
and operating locations for software development
and related technical services;
F. Those with instruments and capabilities
to guarantee the quality of software products
and technical services;
G. Those with the R & D expenditures
on software technologies and products accounting
for eight percent or above of the yearly
software income;
H. Those with the yearly software sales
income accounting for thirty-five percent
or above of the yearly total income of enterprises,
and the sales income of self-made software
above fifty percent of that of all software
thereof;
I. Those clear in property right, canonical
in administration and observant in law.
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13. What are
the privileged policies for the convergence
base of the investment industry?
Shenzhen Municipality plans to build convergence
bases for industries of furniture, horologe,
mold, garment, handicrafts, undergarment,
toys, press, jewelry, fine chemicals, automobile
and electronic equipment, etc. Capital of
different resources is encouraged to participate
in the development and construction of the
convergence base with some privileged policies
provided as follows:
A. To urge the State Development Bank and
Commercial Bank to provide loans for the
development & construction of the industrial
convergence bases;
B. To encourage the reference institutions
to provide various reference services for
enterprises;
C. To set up specialized funds to provide
subsidy for the expenditures in the layout
of industrial convergence bases and the
construction of public technology platform
and information platform;
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