The Communist Party of China Central Committee and the State Council released on July 15, 2021 the Opinions about Supporting High-level Reform and Opening-up of the Pudong New Area and Building a Pioneer Area for Socialist Modernization.
The document proposed to cut enterprise income tax rate to 15% in the first five years for companies in key sectors like integrated circuit, artificial intelligence, biomedicine and civil aviation at designated areas in Pudong.
A core area in Pudong will be zoned to launch preferential corporate income tax policies for venture investment companies. During the pilot period, eligible venture investment companies can be treated as individual investors and exempted from corporate income tax.