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What Is The Concept Of Two Exemption From Three And Half?

2010/11/22 13:52:00 34

Two Exemption From Three And Half The Accounting And Cashier Economy

[question]

Excuse me, two please.

Three halved

What is the meaning of the tax exemption in the first two years and half in the next 3 years?

[answer]

According to the eighth law of the People's Republic of China on foreign investment enterprises and foreign enterprises income tax law, the so-called "two exemption and three halved" policy is that foreign invested enterprises can enjoy 2 years' exemption from profit making and 3 years' reduction of corporate income tax.

However, this provision is now invalid.

According to the State Council

Economics

The notice of pitional tax incentives offered by the newly established high-tech enterprises in Shanghai and Pudong New Area stipulates that the State Council has decided to implement pitional tax incentives for new and high technology enterprises newly established by the State Council, which need to be supported by the State Council in the specific areas where the law sets up foreign economic cooperation and technical exchanges, and the State Council has stipulated that special policies should be carried out in the above-mentioned areas.

I. the development of law and the development of foreign economic cooperation.

technology

The specific areas of Communication refer to the special economic zones of Shenzhen, Zhuhai, Shantou, Xiamen and Hainan; the areas designated by the State Council to implement the special policies mentioned above refer to Shanghai Pudong New Area.

Two, the high and new technology enterprises (hereinafter referred to as the new hi-tech enterprises) that are required to be registered in the special economic zones and Pudong New Area, Shanghai, which have completed registration in January 1, 2008 (hereinafter referred to as the new hi-tech enterprises), have obtained the income from the special economic zones and Shanghai Pudong New Area from the taxable year of the first production and operation income, and have been exempted from corporate income tax from the first year to the second year, and the enterprise income tax has been levied at 25% of the statutory tax rate from third to fifth years.

The high and new technology enterprises that the state needs to support mainly refers to the high new technology enterprises that have core independent intellectual property rights and conform to the ninety-third provisions of the regulations on the implementation of the enterprise income tax law of the People's Republic of China.

Three. The new special economic zones and new high-tech enterprises in Pudong New Area and Shanghai will also engage in production and operation outside the special economic zones and those outside Shanghai and Pudong New Area. They should separately calculate their income in the special economic zones and Shanghai Pudong New Area, and reasonably share the inter annual expenses of the enterprises.

Four. The new high-tech enterprises in the special economic zones and Pudong New Area, Shanghai will enjoy the pitional tax concessions during the period of enjoying the pitional tax benefits according to the provisions of this circular. They will no longer enjoy the pitional tax benefits since they are no longer eligible for high and new technology enterprises. If they are once again recognized as high-tech enterprises, they may not continue to enjoy or enjoy the pitional tax benefits.