Yantai Tax policies

The applicable tax levied on foreign-funded enterprises, foreign enterprises and individual foreigners is categorized as income tax on foreign-funded enterprises and foreign enterprises, value-added tax, consumption tax, business tax, land appreciation tax, resource tax, stamp tax, animal slaughter tax, urban real estate tax, driving license tax on vehicles and boats and individual income tax. Preferential tax policies for foreign-funded enterprises, foreign enterprises and individual foreigners, which the new tax system provides, are introduced as follows:




Tax Reimbursement on China-produced equipment purchased by foreign funded enterprises
　　Ever since 09/01/1999, China-produced equipment purchased by foreign-funded enterprises within the scope of drawback investment total appraised by a tax authority and in agreement with Encouragement and restriction of the ?Industrial Catalogue Guiding Foreign Investment? of ?The State Council Notice About Regulating Import Equipment Tax Policy? and ?Current Industries, Products and Technology Catalogue Specially Encouraged by State? shall, with the approval of tax authority in charge of tax reimbursement, 40% of the investment for purchasing China-produced equipment can be exempted from the newly added volume of enterprise income tax over the previous year when the foreign-invested enterprise purchases the equipment; If additional capital excluded from the total investment is used for purchasing China-produced equipment, 40% can also be exempted from the newly added volume of enterprise income tax over the previous year when the foreign-invested enterprise purchases the equipment. The China produced equipment herein does not include the equipment that investors contribute as registered capital.