Preferential Policies in Zhangjiagang, Jiangsu

Tax Preferences for Production
Value Added Tax : VAT of exported products shall be exempted or offset according to the state regulations. Processing materials supplied from abroad for re-export can be free from VAT.
Corporate Tax : The corporate tax rate of manufacturing enterprises is 24% and that of others is 30%. Manufacturing enterprises can enjoy the treatment of 2 years exemption and 3 years reduction by a half from the first profit-making year.Enterprises with over 70% of their products for export will continue to enjoy the treatment of reduction by a half of the corporate tax after the expiration of 2 years exemption and 3 years reduction by a half treatment.Enterprises with advanced technology can enjoy another 3 years reduction by a half after the expiration of 2 years exemption and 3 years reduction by a half treatment.
Local Income Tax : The local income tax rate is 3%. The local income tax is exempted during the period of 2 years exemption and 3 years reduction by a half.Exporting enterprises (with export volume over 50%) and enterprises with advanced technology are exempted from local income tax.
Other Tax : Joint ventures engaged in port constructions with operating period exceeding 15 years can enjoy 15% tax rate with approval and the treatment of 5 years exemption and 5 years reduction by a half of corporate tax.
Tax Preferences for Import
1. According to The Guide of Foreign Investment, equipment and technology imported according to the contracts and rational amount of components and parts imported by enterprises listed in the State Encouraged Projects for their own use are free of duty and VAT after approval (excluding products listed in The Catalogue of Non-Duty-Free Import for Foreign-Invested Projects).
2. Raw materials imported by foreign-invested enterprises for implementation of the export contracts shall be supervised by the Customs as bonded goods.
Tax Preferences for Purchasing China-Made Equipment
If the foreign-invested projects listed in the State Encouraged Projects purchase China-made equipment within their total amount of investment, they can enjoy the following preferences after approval:
1. 40% of the equipment cost can be offset from the increased corporate tax compared with the year before purchasing the equipment. The left can be offset in the following maximum of 5 years from the increased corporate tax compared with the year before purchasing the equipment (Drawbacks shall not be calculated into the original price of the equipment).
2. VAT on purchasing China-made equipment can be drawn back.

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