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Tax of Sanya

From January 1, 2008, the enterprises and companies that have already enjoyed a favorable tax rate will gradually be subject to the regular corporate income tax within five years. The enterprises enjoying a 15% percent tax rate at present should pay corporate income tax at the rate of 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011, 25% in 2012. Those enterprises currently enjoying a 25% percent tax rate should begin to pay corporate income tax at the rate of 25% from 2008.

1. Some specific manufacturing-oriented foreign-invested enterprises in Sanya pay corporate income tax at the rate of 15%. Those enterprises should meet at least one of the following criteria: a. it is a tech-intensive or knowledge intensive one; b. the investment is more than 30 million dollars with a long pay-back period; c. the project is about energy, transportation, or port construction.

2. All the domestic enterprises (except national banks and insurance companies) which have their organizations established in Sanya and are engaged in production and business are subject to corporate income tax at a rate of 15%. All the foreign invested enterprises outside the National Tourism Resort Zone are subject to corporate income tax at a rate of 24%.

3. For those manufacturing-oriented foreign-invested enterprises with a business period over 10 years, the corporate income tax can be exempted for the first two years after making profits, and the corporate income tax can be reduced by 50% for the third, fourth, and fifth years.

4. For the enterprises involving in infrastructure projects (such as the construction of airports, harbors, ports, railway, highway, power plants, water conservancy) with a business period over 15 years, the corporate income tax can be exempted for the first five years after making profits if the enterprises applied to the tax authorities of Hainan Province and get approved. In addition to this, the corporate income tax can be reduced by 50% for the sixth to the tenth years. The joint-ventures constructing harbors and ports pay the corporate income tax at a reduced rate of 15%.

5. For the foreign-funded enterprises of service industry with a investment more than five million dollars and a business period over 10 years, the corporate income tax can be exempted for the first year after making profits if the enterprises applied to the tax authorities of Hainan Province and get approved. The corporate income tax can be reduced by 50% for the second and the third years.

6. For those enterprises ( except national banks and insurance companies) involving in industry and transportations and with a business period over 10 years, the corporate income tax can be exempted for the first two years after making profits, and the corporate income tax can be reduced by 50% for the third, fourth, and fifth years.

7. For those enterprises ( except national banks and insurance companies) involving in service industry and with a business period over 10 years and a investment more than five million dollars or twenty million yuan, the corporate income tax can be exempted for the first year after making profits, and the corporate income tax can be reduced by 50% for the second and the third years.

 

2011-01-24