In recent years, as cross-strait economic exchanges continue to strengthen and deepen, Taiwanese enterprises have gradually increased their investments in mainland China. In order to further promote cross-strait economic cooperation, the Chinese government has adopted a series of tax incentives for Taiwan-funded enterprises in order to attract more Taiwan-funded enterprises to invest in the mainland. At present, the following tax incentives for Taiwan-funded enterprises are available: 1. Value-added tax (VAT) reduction and exemption policy. For qualified Taiwan-funded enterprises, they can enjoy VAT reduction or refund policy to reduce the burden of enterprises.2. Income Tax Preferential Policies. According to the Enterprise Income Tax Law, qualified Taiwanese enterprises can enjoy an enterprise income tax rate of 5%. Meanwhile, if enterprises have difficulties in investment, they can apply for an extension of the tax incentives.3. Enterprise income tax incentives. According to the Interim Provisions on the Implementation of the Adjustment of the Foreign Investment Industry Catalog, qualified Taiwanese enterprises can be exempted from taxes such as enterprise income tax and personal income tax. In addition, in the fields of finance, insurance and securities, the Chinese government has also adopted corresponding tax incentives for Taiwan-funded enterprises to promote cross-strait financial cooperation.
If a Taiwan enterprise is involved in a special industry or field, can it enjoy preferential tax policies? In special industries or fields, such as green environmental protection, high-tech, cultural creativity, etc., the government will also specially formulate corresponding tax incentives for these fields to encourage Taiwan-funded enterprises to invest in these fields. For details, you need to refer to the provisions of the relevant regulations and policies.
Through the tax incentives for Taiwan-funded enterprises, the Chinese government encourages Taiwan enterprises to invest in the mainland and promotes cross-strait economic cooperation. However, it should be noted that enterprises enjoying tax incentives need to meet certain conditions and standards, and need to apply and operate in accordance with relevant regulations and policies.
Legal basis:
Article 25 of the Enterprise Income Tax Law of the People's Republic of China*** and the State The State shall give preferential treatment to the enterprise income tax for the industries and projects that are the focus of support and encouragement of the development of the Mission State.