The people's Govemment of Hunan province

Taxes

Date:2006-08-14 Source:The people's Govemment of Hunan province

　　11. For the enterprises, in which the workers who are resettled in our province are over than the 20% of original workers, the income tax charged by the tax department, after confirmation, will be returned by finance department within 2 years.
　　12. On the basis of tax payable of enterprise which is sold out last year, the value of income tax and 50% of the portion of local retention of VAT above the basis will be returned by finance department within 3 years after charging by tax department.
　　13. For the productive foreign-funded enterprises, whose operation period is more than 10 years, the enterprise income tax in the first and second years will be exempt from the first profit-making year, and from the third year to fifth year, the preferential treatment of half reduction of income tax will be provided (hereinafter called “Two Exemption and Three Reduction”).
　　14. Any foreign-funded enterprise which is engaged in agriculture, forestry, or animal husbandry, and any other enterprise with foreign investment which is established in poor area may, after application by the enterprise and upon approval by the state tax bureau, be allowed 15%-30% reduction of the amount of income tax payable for a period of another 10 years, following the expiration of the period of exemption and reduction.
　　15. Any export-oriented foreign-funded enterprise may, at the expiration of the “Two Exemption and Three Reduction”period, enjoy a further 50% reduction in enterprise income tax, if the value of their export products of the year exceeds 70% of the total value of products of the year.
　　16. Technologically advanced foreign-funded enterprise may, at the expiration of the “Two Exemption and Three Reduction”period, enjoy a further 50% reduction in enterprise income tax for 3 years.
　　17. Any foreign investor of a foreign-funded enterprise, who directly reinvests its share of profit obtained from the enterprises into that enterprise and increases the registered capital, or uses the profit as capital investment to establish another enterprise, for a period of operation of not less than 5 years, shall, after application filed by the investors and upon approval by the tax authorities, be refunded 40% of the income tax already paid on the reinvestment amount. Any foreign-funded enterprise or technologically advanced enterprise, which reinvests to newly establish and extend the export of products with the operation period of less than 5 years, can be wholly returned the paid income tax on the reinvestment amount.
　　18. Any foreign investor shall be granted exemption from income tax, which obtained from the enterprise he/she has invested in.
　　19. For any foreign-funded enterprise, which is established in our high-tech development zone granted by the state council and is confirmed as a high-tech enterprise; the income tax can be reduced by 15%.
　　20. Any foreign-funded enterprise invested in Changsha and Yueyang of our province can enjoy the preferential tax policy as in coastal economic opening zone.
　　(1) The productive foreign-funded enterprises established in Changsha and Yueyang can be reduced the enterprise income tax by 24%.
　　(2) For the enterprises which established the following projects in Changsha and Yueyang: - projects which are technology-intensive and knowledge-intensive;
- projects with foreign investment amounting to USD 30 million or more and the investment payoff period being long;
- projects which involves in energy development or construction of communication or port facilities;
　　The enterprise income tax may be reduced at a rate by 15%. (It should be approved by the Department of National Revenue)
　　21. Any productive foreign-funded enterprise in our province, whose operation period is more than 10 years, can be exempt from the local taxes (including local income tax, urban real estate tax, vehicle and boat license tax and butcher tax, the same below), while any non-productive foreign-funded enterprise in our province, which its operation period is more than 10 years, may be exempt from the local taxes for 10 years.
　　22. Any basic industrial enterprise of energy & transportation, fundamental facilities and raw materials and any foreign-funded enterprise established in the economic and technological development zone and high-tech development zone, can be exempt from the local taxes.
　　23. The expenses of assets evaluation, transaction, auction and notarization involved in the process of property rights transfer can be charged at a rate of 50% of the current standard. For handling of registration of change or transfer of industry & commerce and property rights, only the handling fee is charged.

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