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China State Council Issues Guideline on High-Level Reform and Opening-Up of Pudong New Area in Shanghai Including Preferential Tax Policies — Orbitax Tax News & Alerts

China's State Council has published an English-language release on a new guideline to support high-level reform and opening-up of the Pudong New Area in Shanghai, which was jointly issued by the Communist Party of China Central Committee and the State Council. Among other things, the guideline (Chinese language) contains several preferential tax policies to promote certain business activities in certain areas of Pudong, including a reduced corporate tax rate of 15% for enterprises engaged in production and development in key innovative areas, including integrated circuits, artificial intelligence, biomedicine, and civil aviation, which will apply for five years from the date of establishment. Preferential tax policies are also included in relation to import taxes and VAT, as well as preferential tax policies for corporate venture capital in specific areas in Pudong. The guideline provides a relatively high-level view of the policies and detailed rules for implementation will need to be issued by the State Administration of Taxation and the Ministry of Finance. Further details will be published once available.