Preferential Tax Policies
★ For general value added tax (VAT) payers who are engaged in such industries as equipment manufacturing, petro-chemicals, metallurgy, shipping, automotive manufacture, and agricultural product processing in Jilin Province, their input taxes（gained by purchasing fixed assets, goods or taxable services for the home-made fixed assets）and the transportation costs paid for fixed assets， can be deducted from the additional yearly VAT. If there is no annual additional tax or if the VAT amount cannot meet the deduction, the unpaid input tax can be carried forward to the subsequent years. The implementation of this policy took effect from July 1, 2004 onwards.
★ To the Low-abundance oil fields and poor mines in the Northeastern China, with the approval of provincial government, the reduction of applicable standards of resource tax rate can not exceed 30%.
★ The limit for taxable wages can be extended, which, in the enterprises in Northeastern China, can be increased to a monthly average of 1,200 Yuan per capita. The specific criteria are decided within the limit set by the provincial people's government according to the local average wage level. Within the limit of the provincial government’s standard, the actual wages offered by the enterprises can be deducted before tax. These deduction standards were put into effect since July 1, 2004.
★ The depreciation rate of fixed assets can be increased. The depreciation period of the fixed assets (excluding houses, buildings) in China's northeastern industrial enterprises, under the existing provisions of the depreciation period, can be shortened to no more than 40%.
★ The amortization period of intangible assets can be shorten by no more than 40%. But these assets should be amortized accordingly if their life span is set by agreements or contracts.
Related Social Security Policies for Trial
★ Trial Social Security Policies have expanded from Liaoning Province to Heilongjiang and Jilin provinces, and their implementation has been in full swing. To create good conditions for restructuring state-owned enterprises, the state offers a subsidy of 3.75%, employers contribute 1.25% and 5% goes to personal accounts.
Preferential Policy for Investors
★ Each year, China sets up special industrial-bond projects for the program of revitalizing the northeast old industrial base. Once included in the program, the bond funds of the revitalizing projects are arranged, in principle, to 10% of the fixed assets investment, 15% to the maximum.