The Management Committee of the Pingtan Comprehensive Experimental Zone in Fujian recently released the Circular on Continuing the Policy of Applying Preferential Corporate Income Tax Rate in the Pingtan Comprehensive Experimental Zone to extend the application of the reduced tax rate for five years from January 1, 2021 to December 31, 2025.
According to the Circular, companies set up in the Zone would be levied the corporate income tax at a reduced rate of 15% if they are qualified by meeting the requirements of having its main business in the industry as set forth in the Catalogue of the Industries Eligible for the Preferential Corporate Income Tax in the Pingtan Comprehensive Experimental Zone (2021 Edition), with their income from the main business representing more than 60% of its total income. The total income should be subject to the provisions of the 6th article of the Law on the Corporate Income Tax. The 2021 edition of the Catalogue has added four industries including electronic information, modern logistics, technology and business service, and information service for 12 items on the basis of the 2017 edition.