The hi-tech enterprises cognized in Jinan High-tech Development Zone will be levied the income tax at a reduced rate of 15% from the date of cognizance.
Income tax rate for hi-tech enterprises is 10% when their export production value exceeds 70% of the total production that year.
After application to and approval by the tax authorities, newly established enterprises can be exempted of the income tax for 2 years from the year of production.
Enterprises income tax from enterprises of domestic investment on technical transfer, technical training, technical advisory services etc., will be exempted temporarily when annual net income is below RMB 300,000. Income tax should be levied on the proportion exceeding RMB 300,000 according to the applicable rate. For the hi-tech products in the "torch plan", products tax and value-added tax exempted or reduced according to the related articles can be specially used on technological development and will be exempted from the income tax.
Tax exempted or reduced for the enterprises with domestic investment should be regarded as the national supporting fund, accounted independently, and be used on the development of hi-tech products under the supervision of the relevant department.
For the profits assigned to the investors from the joint ventures, after deduction of the income tax paid by the High-tech Development Zone according to the financial system of the enterprises, income tax should be paid or the profits be handed in.
Bonus tax shall be levied for enterprises with domestic investment in accordance with the relevant regulations, whereas the following bonus shall be exempted from bonus tax:
1. Bonus coming from the net income on technological transfers, technological advisory, technological services and technological training of a proportion of no more than 15%;
2. Bonus assigned to the employees by the hi-tech products export enterprises coming from the export bonus, of a proportion of no more than the standard salary of one and a half months.
3. Other bonus exempted of bonus tax in accordance with the national regulations
The average annual bonus of the summation of the bonus mentioned in the 2 articles above, if less than the amount of 2.5 standard salary, should be exempted of the bonus tax of 2.5 salaries; if more than 2.5 standard salary, should be exempted of the actual bonus tax.
Enterprises with domestic investment, if constructing for the technological development and operation using the self-financed funds, should be exempted of the construction tax (or regulatory tax on the investment) according to the national industry policies.
Loans received by the enterprises should be repaid after the collection of income tax.