Policies

Preferential policies of Changsha industrial zones

Changsha's two state-level industrial zones, the Changsha National Economic and Technical Development Zone (CETZ) and the Changsha National High-tech Industrial Development Zone (CHTIDZ), provide preferential taxation and financing policies for enterprises.

Both industrial zones fully implement the policies of national economic and development zones and national hi-tech industrial development zones

Corporate Income Tax rates for advanced and new technology enterprises recognized by relevant government authorities (i.e. the Advanced and New Technology Enterprise Recognition Institution, composed of government authorities of science and technology, finance and taxes) is reduced to 15 percent.

In CHTIDZ

The zone's finance committee has set up a special fund ($ 28.2 million) for industry development to support key industries, featured industries and technological innovation projects.

Manufacturing enterprises in electronics, equipment and advanced material industries with a one-time fixed asset investment of $70.4 million or more canacquire a separate industry support fund. The amount of funding will be 10 percent, or more, of the fixed asset investment in consideration with the contribution of projects to taxation in CHTIDZ.

Headquarters and regional headquarters that do not set up a manufacturing base can receive a cash grant within three years of starting operations. The amount will be 10 percent to 40 percent of the tax collected by CHTIDZ from the enterprise.

Fortune 500 or Chinese Top 100 enterprises who conduct research or production in industries such as IT / communications, equipment manufacturing and advanced materials, or set up a headquarters or regional headquarters in CHTIDZ, will be given a one-off industry support grant. The amount of the grant will be $70,500 to 141,000 considering brand reputation, investment scale and production volume.

Fifty percent of actual collected taxes by the district government from individual income tax paid by senior executives of the enterprises, and enterprise headquarters and qualified headquarters, will be rewarded to the tax payer within three years from the date of paying tax. In the case they buy an apartment for the first time in Lugu, a reward equaling 50 percent of the tax collected by the high-tech zone government from the personal income tax paid in the three years before the purchase will be given to the apartment buyer. The reward shouldn't exceed 80 percent of the price of apartment.

For small and medium-sized enterprises in science and technology, according to the amount of new taxation on enterprises, the finance department of CHTIDZ will provide loan interest payment support of no more than 40 percent of the loan interest from the bank. However, the total discount rate gained by one enterprise from all levels of government cannot exceed the loan rate.

Changsha Customs offers efficient customs clearance measures in accordance with relevant regulations and policies, such as pre-arrival declaration and on-the-spot examination, to those enterprises within the zone.

In CETZ

The zone management committee will allocate 200 million yuan ($30.35 million) every fiscal year to develop key leading industries and boost technological innovation.

Automotive and construction machinery enterprises enjoy a deduction from the current year's taxable income equal to 150 percent of R&D expenses for new products, technology and manufacturing techniques.

New projects, or those with upgraded technology, with a fixed asset investment of over 2 million per mu(a), or an output of over 3 million yuan per mu, enjoy a 20 percent refund of the local tax paid for a five year period from the year that operations commence.

Sources: (1) Administrative Committee of CHTIDZ

(2) Administrative Committee of CETZ

Note: (a) 1 mu=0.16 acre

This English version is only for reference. To learn more, please refer to the authoritative Chinese version.