Preferential Tax Policies For High And New Technology Enterprises

The international application of the enterprise income tax and the local income tax rate shall be equal to the original applicable enterprise income tax rate. Foreign investors directly reinvest the advanced technology enterprises that are held or expanded. They shall, within one year after the reinvestment fund is invested, hold the certifying materials of the invested enterprises as the advanced technology enterprises issued by the verification and confirmation department, and go to the local tax authorities to handle all the income tax paid by the reinvested portion.

If the invested enterprise fails to meet the standard of the advanced technology enterprise in the period of tax refund stipulated for reinvestment, the tax authorities should pay the tax rebate according to the tax refund ratio of 40%.

The invested enterprise shall be recognized as an advanced technology enterprise within one year after the date of production or operation or the reinvestment fund is put into use, and then the difference shall be refunded at the rate of 100% rebate.

In accordance with the regulations, foreign investors should apply to the tax authorities for proof of their annual profits in accordance with the aforesaid provisions. The certificate of capital increase or capital contribution indicating their Reinvestment amount and Reinvestment period shall be provided. The enterprises that have been confirmed to be held or extended by the relevant departments shall be certified by the advanced technology enterprises, and the tax rebates will be processed after examination and approval by the tax authorities.

Case two] the Sino Japanese joint venture Xun Yang microelectronics company gained 3 million yuan, 4 million yuan and 5 million yuan from its advanced technology enterprise Xun Dong electrical and mechanical development company in 1995, 1996 and 1997 respectively. The corporate income tax rate is 15% and the local income tax rate is 3%.

A new advanced technology enterprise, Xun Nan science and technology development company, can be refunded in accordance with the regulations: the tax refund amount is 1000 / (1 - 19%) x 15% = 1 million 929 thousand and 300 yuan. If the new advanced technology enterprise is the South Science and technology development company, which has started business in February 1999 and has failed to meet the advanced technology enterprise standard, the foreign tax authorities apply for tax rebates to the tax authorities. The tax authorities will refund 731 thousand and 720 yuan (192.93 x 40%) to the tax authorities according to the regulations. In December 1996, when the enterprise reaches the technical enterprise standard after examination, the foreign tax authorities apply for tax rebates to the tax authorities, and the tax authorities will refund the remaining 60% or 1 million 97 thousand and 590 yuan (1 million 97 thousand and 590 * 1 million 97 thousand and 590) according to the regulations. In September 1999, the foreign businessman would be 10 million of the total.