CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. China Planning Extra Free Trade Zones

China Planning Extra Free Trade Zones

by Mary Swire, Tax-News.com, Hong Kong

20 May 2014


Long Guoqiang, the Director of the State Council's Development Research Center, has said that China will set up a number of new free trade zones following the successful pilot scheme in Shanghai.

Long disclosed that a number of local and regional governments have already applied to have FTZs within their borders, and that the Chinese Government has agreed that their spread throughout the country would fit well with current policies to boost foreign trade growth and increase the use of the renminbi.

However, he also confirmed that approval of those applications is being coordinated and is not being rushed, and that they would consequently not all be approved at the same time. Additional FTZs are being considered on the basis of where they would be of the most advantage for the country.

The pilot FTZ in Shanghai was launched in September 2013, and is concentrated on financial services and investment, commodities trading, and logistics. However, Long pointed out that new FTZs could develop their own unique selling points, and could have unique tax and other financial incentives.

The Shanghai FTZ offers additional tax incentives for investment and trade. Zero customs duties and import taxes apply to goods being transferred between the FTZ and overseas destinations; domestic merchandise entering the FTZ is regarded as having been exported, and exporters enjoy an immediate tax rebate; and tax exemptions have been granted to companies registered in the zone on their imports of machines and productive equipment. In addition, to promote investment in the Shanghai FTZ, companies and individuals are able to pay income taxes by installments over a five-year period for revaluations arising from asset restructuring.

It is expected that, in the future, the tax measures to be applied in new FTZs will continue to remain subject to study, development, and adaptation by the Government, particularly to avoid an erosion of the country's tax base, and to align them with China's overall tax system regarding inward and outward equity investment.

TAGS: tax | investment | business | tax incentives | banking | financial services | equity investment | corporation tax | China | tax breaks | import duty | trade | free trade zone | services | business investment

To see today's news, click here.

 
















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »