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Preferential Policies in Shanghai

Updated:2020-7-30 15:03:03    Source:www.tannet-group.comViews:811

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Shanghai tax preferential policy is more competitve comparing with other mainland provinces or cities, which is an essential factor to attract investors from domestic and overseas. The preferential tax policies of Shanghai company are mainly based on tax return. That is, after the company pays tax, part of the tax will be returned to the corporate. Including business tax, value-added tax and corporate income tax. The tax rebate policies vary greatly for different zones as well.

1.National and Local Tax Sharing System
National fiscal: 75% value added tax, 60% income tax
Local (provincial/municipal) fiscal: 25% value-added tax , 40% income tax

2. Shanghai Tax Sharing System
Shanghai's taxation is divided by the governments at all levels. Except for the tax reserve of the state, local taxation is divided by the Shanghai municipal government, district government, development zone and enterprises.

Tax sharing ratio of Shanghai:
Chongming district accounts for 0% of municipal finance, 30% of district finance, 30% of development zone, and more than 40% of enterprises;

Jinshan district finance accounts for 40%, district finance accounts for 15%, development zone accounts for 10%, enterprise accounts for more than 35%;

Other suburban cities accounting for 40%, district accounting for 20%, development zone accounting for 10-15%, enterprises accounting for more than 25%;

Urban finance accounts for 40%, district finance accounts for 30%, development zone accounts for 20% and enterprise accounts for 10%.

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