Asia Matters

Ireland China Business Summit

8 July 2015Radisson Blu Royal Hotel, Dublin

‘The Role of Twin Cities in Driving Business Partnerships’

8 July 2015Radisson Blu Royal Hotel, Dublin

Update on Key Incentives for High-Tech Industry

Zhu YuanguangDeputy Director of Beijing Municipal

Local Taxation Bureau Policy

Yuanguang Zhu

Deputy Director of Beijing Local Taxation Bureau

Tax Policy Update on Key Incentives for High-tech Industry

Overview

Political Centre

Cultural Centre

International Communication Centre

Technology Innovation Centre

1 Tax Revenue of Beijing

2014

Tax-registered entities ： 1.36 million

Tax revenue ： RMB 1132 billion

【 Tax Reven

ue

】62%29%

9%

The Proportion of Tax Revenue by Tax Categories

Income Tax Goods and Service Tax Property and Behavior Tax

【 Tax Reven

ue

】

The Decisive Role of Market in the Allocation of Resources

Tax Service Online

the Horizontal Networking among Finance Departments 、 Taxation

Authorities 、 the Treasury and Commercial Banks for the Electronic

Payment of Tax Revenues to the Treasury

The Joint Tax Registration by the State Taxation Bureau and the Local

Taxation Bureau

the Spring Breeze Campaign for More Convenient Taxation Services

Protection of the Rights and Interests of Taxpayers

【 Tax Reven

ue

】

【 Tax Reven

ue

】

2 Introduction on Preferential Tax Policies

The Common Preferential Tax Policies

in China

The Unique Preferential Tax Policies

in Beijing

【 Tax Red

uctio

n an

d

Exem

ptio

n

】

The tax reduction and exemption amount

totaled RMB 48.9 billion in 2014

Among them, tax cut of RMB 22.1 Billion for high-

tech enterprises accounted for 45% of the total tax

reduction and exemption

The export tax refund reached RMB 25.9

billion

【 En

terprise In

com

e Tax

】

The Common Preferential Tax Policies in China

【 Ind

ividu

al Inco

me Tax

】

The Common Preferential Tax Policies in China

The prizes in special fields, such as science, education, technology and health care, which are rewarded by provincial or higher level department of Chinese government and by international organizations, can be exempted from individual income tax.

【 Zh

on

gg

uan

cu

n S

cien

ce D

em

on

stra

tion

Park

】The Unique Preferential Tax Policies in Beijing

Expanding the scope of additional

deduction for R&D includes five social

insurance and one housing fund of research

persons, the charge of operation and

maintenance of the equipment dedicated to

R&D and so on.

The employee education expenditure

which does not exceed 8% of the total wages

can be deducted. (the standard deduction

percentage is 2.5%)

【 Zh

on

gg

uan

cu

n S

cien

ce D

em

on

stra

tion

Park

】The Unique Preferential Tax Policies in Beijing

When the high-tech enterprises reward their

employees with shares, the individual income tax

could defer payment until actually receiving

dividends or transferring shares.

When high-tech enterprises transfer

undistributed profit, surplus reserves and capital

reserves to individual shareholders, the individual

shareholders can pay the individual income tax by

installments in no more than 5 years .

3 Double Taxation Agreement between China and Ireland

【Do

ub

le Taxation

Ag

reemen

t

】

AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA AND THE GOVERNMENT OF IRELAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME TAKE EFFECT ON 1ST JAN, 2001.

Ireland’s enterprises invest in China and pay income tax at a 5% withholding enterprise income tax rate and enjoy 10% withholding enterprise income tax rate when they obtain interest and royalties income from China.

【

Sin

cere invitatio

n

】

We will provide the best

quality and the most

convenient tax service.Let us

work and win the future

together!

Welcome to Beijing!

Thank You !