Requirements for eligibility
To apply for eligibility for the preferential tax, enterprises should submit the following documents to the municipal tax bureau:
- Copy of business license;
- Proof of substantive production or R&D activities (such as project filing documents in the new area, land or business site use, lease certificates, environmental assessment filing materials, etc.);
- Certifications such as technical level certification documents, enterprise management capabilities certification documents, etc.;
- A letter stating the authenticity of the materials and supporting documents for the declaration of tax preference eligibility;
- A letter of authorization for a corporate credit inquiry, etc.;
- Other related materials.
Administrators of the Lingang New Area or the management committee will review the correctness of the material submitted by the enterprises. Furthermore, they must ensure that the enterprises meet the required score of 60 points or more in terms of accreditation. The management will submit the enterprise application to Shanghai’s Economic Information Commission.
Shanghai’s Municipal Economic and Information Technology Commission shall appoint experts to conduct the final review of eligible key enterprises in the Lingang New Area. Finally, the Municipal Finance Bureau, the Municipal Taxation Bureau, and the New Area Management Committee of the Lingang New Area will issue a public document with the list of qualified enterprises.
For the qualifications of experts who will be appointed for the review process, please refer to the Shanghai Caifa [2020] No. 12. Accordingly, companies registered from January 1, 2016, to December 31, 2019, can also enjoy the preferential taxes from 2020 as to the date of establishment.
Source: Shanghai officially launches new FTZ, Lingang Special Area, CGTN News
Other policies for the Lingang New Area
The establishment of the Lingang New Area is one of the most recent developments in Shanghai’s Free Trade Zones. The city government of Shanghai aims to make the area a technology and manufacturing hub to attract more flow of foreign investments. Moreover, the new area has also received greater attention from the national government, Thus, it has gained a number of special incentives and policy support for overseas talents.
Read our previous post about Special Incentives for Overseas Talents in Shanghai
Shanghai’s Municipal Government does not only continue to implement measures on preferential tax rates. It also promotes the streamlining of business procedures, supervising custom activities, and enhancing cross-border payments or flow of capital for investments.
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