China Legal Notes

Tax Incentives

税收优惠 — Preferential tax policies for enterprises and foreign investors

Tax Incentives 税收优惠

China offers various tax incentives to encourage investment, innovation, and regional development.

Enterprise Income Tax Incentives

High and New Technology Enterprises (HNTE)

Certified HNTEs enjoy a reduced CIT rate of 15% (vs. standard 25%).

Small and Low-Profit Enterprises

Reduced effective CIT rates for qualifying small enterprises.

R&D Super Deduction

Additional deduction (加计扣除) for qualifying R&D expenses — currently 100% super deduction (i.e., 200% total deduction).

Key Software and Integrated Circuit Enterprises

Preferential rates: 10% CIT for qualifying enterprises; tax holidays for newly established enterprises.

Regional Incentives

  • Western Development Strategy (西部大开发) — 15% CIT for encouraged industries in western regions
  • Hainan Free Trade Port (海南自由贸易港) — 15% CIT for qualifying enterprises
  • Special Economic Zones and FTZs — various preferential policies

Withholding Tax Incentives

  • Reduced WHT rates under tax treaties
  • Exemptions for certain dividend distributions

To be expanded with specific circulars and current policies.

2026 © Denis Shushin.

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