Introduction to China Industrial Parks 

Preferential Policies in Industrial Parks

Untitled Document
Different preferential policies are implemented in different industrial parks. A comparison is made below of the policies among the four major types of development zones, i.e. ETDZs, HIDZs, FTZs and EPZs.
Comparison of policies of four major types of industrial parks





Corporate Income Tax Rate (for foreign-invested production enterprises)


Corporate Income Tax Rate (for high-tech enterprises)

15%, for the high-tech industries encouraged by the nation

Custom Duty and Value-Added Tax (VAT)
(on self-use equipment and spare parts)

For the enterprises belonging to the category of encouraged industries, custom duty and VAT will be exempted. Exempted

Custom Duty and Value-Added Tax (VAT)
(on office appliance)

No exemptions Exempted

Custom Duty and Value-Added Tax (VAT)
(on raw materials and parts)

Only enterprises involved in the processing trade are exempted. Exempted

VAT Rate

13% for agriculture-related projects
17% for others

Licenses for equipment, raw materials and office appliances (for processing trade enterprises)

For enterprises in the category of encouraged industries, licenses are exempted. Licenses not required for all processing trade enterprises.

Tax on finished products using duty-free materials (sold domestically)

Levy on finished products.

Levy on imported raw materials and parts only.

Levy on finished products

VAT Refund for finished products made using domestic raw materials

VAT will be refunded following departure of shipment from China.

Immediate VAT refund for domestic raw materials upon entering the zone.

Ratio Between Export and Domestic sales

To be decided by investors as long as their projects are in compliance with national industry guidelines and are excluded from export license and quota management. No restriction

Normally there are certain limitations for EPZs.

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