1. Special tax preference: Foreign-invested enterprises in Shenzhen, Xiamen, Zhuhai, Shantou and Hainan, such as foreign-invested enterprises in production economy, enjoy 15% tax reduction of corporate income tax. In addition, if foreign banks and financial institutions meet the requirements, the income tax concessions will be greater. If the investment exceeds US$ 1 million and the operating period reaches more than 1 years, they may enjoy tax exemption or tax reduction by half in the first three years.
2. Tax incentives for enterprises in old urban areas: the income tax rate can be reduced to 15% for projects with intensive technology, large investment and long payback period, as well as productive foreign-invested enterprises in the fields of energy and transportation. Similarly, the income tax rate of foreign-invested enterprises in the old urban areas is also reduced by 24%.
3. Preferential treatment for service enterprises: Foreign-invested service enterprises with an investment of more than US$ 5 million and operating for more than 1 years shall be exempted from income tax for the first two years, and levied at a half rate for the next three years.
4. Long-term preferential treatment for productive industries: enterprises in the special zone with an operating period of more than 1 years shall be exempted in the first two years, and the income tax shall be halved in the third to fifth years. When the profits shared by foreign investors are remitted abroad, they are also exempted from income tax.
5. preferential treatment for export enterprises: the income tax rate of foreign-invested enterprises whose export output value accounts for more than 7% in the special zone can be reduced to 1%.
6. Special preferential treatment of Hainan Special Economic Zone: Foreign-invested enterprises engaged in infrastructure and agricultural development in Hainan Special Economic Zone in the medium and long term are exempt from tax for the first five years, and their income tax will be reduced by half in the next five years.
preferential policies of special economic zones focus on reducing tax burden to attract foreign investment and promote economic activities. Through these measures, the SAR is committed to creating an environment conducive to the growth and prosperity of enterprises.