Foreign investors in China's central regions can enjoy favorable
tax policies set out in tax laws and regulations, said a senior
official with the State Administration of Taxation (SAT).
SAT deputy director Wang Li told the First Central China
Investment and Trade Expo in the capital of Hunan Province that if
foreign investors reinvested the profits generated from their
businesses in China in other enterprises in the country or
incremented their registered assets for at least five years, the
government would give a 40 percent rebate on the tax paid for the
reinvested capital.
"If the newly-built businesses are export or high-tech
companies, the tax paid for the reinvested capital will be totally
rebated," said Wang.
Central China, comprising the provinces of Shanxi, Anhui, Henan, Jiangxi, Hunan and Hubei, is the country's major farm production
base as well as an important base for energy, raw materials and
manufacturing.
The development of central China's economy was considered key to
opening the country wider to the world and achieving sustainable
economic growth.
Wang also said China was poised to extend the valued-added tax
(VAT) reform to some old industrial base cities that need to
modernize outdated industrial projects.
The government launched the VAT reform experiment in the
northeast region, including the provinces of Liaoning, Jilin and
Heilongjiang, in July 2004.
(Xinhua News Agency September 28, 2006)