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Taxation Policy The income tax rate for
foreign-funded for manufactures is 15%. Those
registered at CAS Kunshan High-tech Industrial
Park enterprise whose business operation lasts
over 10 years(including 10 years ) are exempt
from income tax in the first two profit-making
years and allowed a 50% from the third to the
fifth profit-making years. Enterprises engaged
in exported pay half of the tax amount due after
the stipulated reduction period provided that
the exported products of the year exceed 70% of
the total production, furthermore, should the
tax rate is lower than 10% after the tax amount
is reduced to half of it, the tax is to believed
at a 10% rate. Technologically advanced
enterprises are granted an extension of the
three-year 50% taxation and subject to 10%
payment thereafter should the tax rate due is
lower than 10%. Foreign-funded business is
eligible for 40% tax return if they reinvest
their profit and run business in China for five
years or more; And for their 100% return if they
make further investment in export-oriented or
high-tech businesses. Should their investment
include purchasing equipment made in China, they
can enjoy a favorable tax return and 40% of the
purchase can be refunded by the amount of tax
exceeding what they paid for the year previous
to the year of purchase. 50% of the technical
development costs can be deduced from the tax
payable of the year.
Land Use Policy
Foreign-funded enterprises are required to pay
for the use of land. The current price is
60,000-100,000 per acre. There are three
alternatives: (1) Obtain the right to use the
state-owned land by assignment; (2) Obtain the
right to use the collective ownership by
assignment; (3) Lease the right to use the
state-owned land or the land of collective
ownership.
Talent Policy
Zhouzhuang adopts a very liberal policy to draw
talents from home and abroad, from all walks of
life. They are not only offered a great many
conveniences and opportunities but shares,
eligibility for low fee as well. University
graduates recruited by joint ventures, college
graduates in badly needed specialties and people
with at least intermediate academic title could
settle in Kunshan and Zhouzhuang.
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Investment Policy
