China tax rate for foreign company has discount for the following companies:
First: Foreign companies operate in special economic zones and economic development zones. And it is engaged in production and operation.
Second: Foreign investment belongs to encouraged projects. And its operating period is more than 10 years.
Third: Foreign companies are engaged in agriculture, forestry, and animal husbandry.
Fourth: Fourth: Foreign companies operate in remote areas with underdeveloped economies.
Discount for projects
First of all, the above-mentioned enterprises belong to energy, transportation, port, terminal or other projects encouraged by the state.
Then: foreign-owned product export enterprises
In addition, China encourages the expansion and increase of preferential capital investment. And foreign companies make profits in China. Meanwhile, they use these profits to reinvest in their own business. Or they use these profits to invest in other companies. When the operating period of these enterprises is not less than five years, China can refund all the reinvested taxes.
Finally: Preferential treatments are for high-tech enterprises and small low-profit enterprises. The specific content is in the implementing regulations.
Discount for technology of foreign enterprises
In addition, foreign companies provide proprietary technology for important technical projects. In this case, China gives preferential treatments to foreign companies for their royalties.
Tax discount for loan
International financial organizations have interest on loans to the Chinese government and the National Bank of China. This part is exempt from income tax.
At the same time, foreign banks lend to the National Bank of China with interest at preferential interest rates. For this part, China does not charge income tax.
- Foreign investors obtain profits from foreign-invested enterprises. For this part of the profit, China does not charge withholding income tax
- Foreign-invested enterprises are exempt from urban construction tax and education surcharges.