What tax incentives does China offer to foreign-invested enterprises?

Based on over a decade of experience in handling such issues, Xu Baotong's legal team shares the following.

Tax exemption or reduction for productive foreign-invested enterprises: Productive foreign-invested enterprises operating for more than 10 years are eligible for a two-year tax exemption starting from the year of profitability, followed by three years of halved corporate income tax.

Preferential treatment for investments in agriculture, forestry, and animal husbandry: Foreign-invested enterprises engaged in agriculture, forestry, and animal husbandry, as well as those located in economically underdeveloped remote areas, can enjoy tax exemption or reduction according to the aforementioned regulations. After the expiration of the tax exemption or reduction period, with approval, these enterprises can continue to enjoy a reduction of 15-30% on the payable corporate income tax for the subsequent 10 years.