1.Corporate income tax

Foreign-funded enterprises: a reduced tax rate of 20% of corporate income shall be applicable for small-size and low-profit enterprises; a reduced tax rate of 15% of corporate income shall be applicable for hi-tech enterprises that demand key supports from the state.

2.Two-year full exemption and three-year half exemption of taxes

For the hi-tech enterprises that are registered within any special economic zone on and after January 1, 2008 and demand key supports from the government (hereinafter referred to as newly-established hi-tech enterprises), the corporate income taxes shall be fully exempted for the revenues acquired from Xiamen Special Economic Zone for the first two years starting from the year when the first operating income acquired is taxable. For the subsequent three years, the corporate income taxes payable on such revenues shall be half exempted based on the statutory rate of 25%.

3.Three-year full exemption and three-year half exemption of taxes

Investment and operating incomes of public infrastructure projects that receive key governmental supports: the corporate income taxes shall be fully exempted for the first three years starting from the year when the first operating income acquired is taxable. For the subsequent three years, the corporate income taxes payable on such revenues shall be half exempted.

Incomes of eligible environment protection, energy-saving and water-saving projects: the corporate income taxes shall be fully exempted for the first three years starting from the year when the first operating income acquired is taxable. For the subsequent three years, the corporate income taxes payable on such revenues shall be half exempted.

4.Increased deductions

The expenses that a company spends on the R&D of new technologies, new products and new techniques and haven’t been included into the current profits and losses as intangible assets shall be increased by 50% before they are deducted from the taxable incomes. Where such expenses have become intangible assets, the amortization shall be done at 150% of the costs of intangible assets.

5.Investment credits

For any venture capital enterprise’s investments in any industry in which investments are preferentially supported and encouraged by the state, the taxable incomes shall be deducted in a certain proportion to such investments.

6.Imported equipment

For any foreign investment projects that are encouraged in the Catalogue of Industries for Guiding Foreign Investment (Revision 2017), all the imported equipment required by the project and for the purpose of self use and the technologies and reasonable quantity of accessory and spare parts that are imported together with the equipment according to the project contract shall be exempted of customs duties except for the commodities as specified in the Catalogue of Non-Duty-Free Commodities to be Imported for Foreign-funded Projects.