Since 2008, when China Corporate Income Tax legislation was amended and preferential tax treatment for foreign-invested companies abolished, Chinese local governments have introduced new and substantial incentive policies to attract foreign investors. Some local governments have adopted written investment incentive policies. Others have informally adopted incentive policies but not yet put these in writing. In both cases, there are several points foreign investors should consider in order to better evaluate the incentives offered. This article provides information on how to better understand and assess a local investment policy in China.
1. Compliance with National Laws, Regulations and Policies
2. Tax Incentives: Their Nature
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