1.How do foreign-investors pay tax for profit that they get from enterprises they invest in?

Foreign-investors do not have to pay tax for the profit that they get from enterprises they invest in.

2.Do foreign investors enjoy preferential policies if their profits are re-invested?

If profits are re-invested into the enterprise to increase the registered capital, or as registered capital for other enterprises, and for more than five years of operation, application for preferential tax policies can be submitted to relevant taxation authorities, 40% of enterprise income tax for the re-invested part can be returned to the enterprise.

3．If foreign-invested enterprises start their operation during the mid of a year and start to make profit within the year, how do they calculate tax exemption and rebate?

Enterprises with less than six months of operation and start to make profit within the same year can choose to start tax rebate and exemption from the next year and pay relevant tax for the first year.

4．What is the maximum of PR fee that foreign-invested enterprises can withdraw before taxation?

The amount shall be no more than 0.5% of sales income for enterprises with annual sales volume of less than RMB 15 million Yuan. The amount shall be no more than 0.3% of sales income for enterprises with annual sales volume of more than RMB 15 million Yuan.

The amount shall be no more than 1% of sales income for enterprises with annual sales volume of no more than RMB 5 million Yuan. For the apart over RMB 5 million Yuan, this amount shall be no more than 0.5% of total sales income.

5．What are the scopes of export commodities that can enjoy tax rebate (exemption)?

According to G.S.F. (1004) No. 31 Document, exporting commodities apart from the following ones can enjoy tax rebate.
⑴ Export commodities with no VAT or consumption tax:
（A）Commodities of imported process materialsfor re-export;
（B）Contraceptive medicines and equipment, old books;
（C）Tobacco (Please refer to specific regulations);
（D）Military products or military products manufactured by military factories;
（E）Other commodities that enjoy tax exemption according to state regulation;

⑵ The following commodities do not enjoy tax rebate:
（A）Crude oil;
（B）Foreign aid commodities;
（C）Bezoar, muskiness, bronze, bronze alloy, platinum and other commodities that shall not be exported;
（D）Sugar.

⑶ Yarn, artistic crafts, spice oil, herbal products, bamboo products, fishing net and tool, rosin, paint, pig hair, goat skin and paper products purchased by export enterprises from small-scaled tax payers with ordinary receipt shall not enjoy tax rebate.

⑷ Commodities that can enjoy tax rebate:
（A）Commodities exported abroad for overseas contracting projects;
（B）Commodities exported abroad for maintenance business;
（C）Commodities sold to foreign overseas vessels;
（D）Electronic machineries that win bidding of international financial institutions or foreign government loan projects;
（E）Commodities purchased in China and exported overseas for investment.

6.How do representative offices of foreign enterprises cancel their tax registration?

Fill out the “Form for the Cancellation of Tax Registration” issued by relevant taxation authorities and submit the form to taxation authorities together with the following documents: 1. Approval from supervising authorities or other documents. 2. Original and copy of tax registration document issued by taxation authority, “Approval for Purchase and Printing of Receipt”, blank receipts and other taxation notes that remain. 3. Other documents and proof as required by tax authorities.
After receiving the form and other relevant materials and documents, tax authority will make decisions within thirty working days and sort out remaining tax and other punishment fees of the representative offices. The “Form for the Cancellation of Tax Registration” with approval from tax authority will be returned to the applicant.

7.How do representative offices of foreign-invested enterprises cancel their tax registration? What documents shall be provided if they ant to renewal tax registration document if the original one expires?
Representative offices can extend validation period at Industrial and Commercial Bureau, then, with their business license, decision on the alteration, original and copy of the tax registration document as well as other documents, they can proceed with tax registration document renewal at relevant taxation authorities.

8.How do permanent representative offices of Singaporean companies proceed with tax registration? What is the responsible tax authority? When can they do so? What materials shall be submitted?

Please proceed with tax registration at Lu Jia Bang Road No. 1060, Floor Two Shanghai Municipal Tax Registration Office with the following materials: Industrial and Commercial Registration License, Representative Office Code License, ID card or passport of chief representative, approval license and tenancy agreement for office.

9.Which bank cards and books can be used for the payment?
Currently, the following cards can be used: Bank of China, Great Wall Card. Area: Shanghai. Type: Debit Card. Code: Online-banking or telephone banking code (If you forget the code, you have to reset a code in a counter in bank). Telephone: 95566 Transaction Time: 6:00-21:00

Communications Bank, Pacific Card, Area: Shanghai Type: Debit and real debit card with Uni-pay signal. Code: The checking code Telephone: 95559

Pudong Development Bank: Dongfang Card and Bank Book. Area: China (card) and Shanghai (Bank book). Type: Debi t card and real debit card. Code: ATM code (which can be only decoded in a bank count). Telephone: 68887000

Merchants Bank: Yikatong, Area: Shanghai Type: Debit card, international debit card except 468203, 410062, 512425, 524011 Code: Checking code (to check balance), ATM code (for payment). Telephone: 95555

Minsheng Banking Group, Minsheng Card, Area: Shanghai. Type: Debit Card. Code: ATM Code (which can only be decoded at bank counter). Telephone: 95568

Bank of Shanghai: Shen Card, Area: Shanghai, Type: Debit card with Unipay signal. Card Bin is 940021, except specific cards for housing and automobile mortgage. Code: ATM code, Telephone: 962888

Guangdong Development Bank: Yihutong Card (New Version of Asset Management Card), Asset Management Card ( Old Version), Area: Shanghai, Type: Debit card. Code: ATM Code. Telephone: 63022233

Shenzhen Development Bank, Development Card or Bank Book. Area: Shanghai, Type: Debit Card. Code: ATM Code (The code is locked if for three times you type in the wrong code and you have to go to a bank counter to decode). Telephone: 95501
Huaxia Bank, Huaxia Card, Area: Shanghai, Type: Debit Card, Code: ATM code. Telephone: 95577

Post Savings, Area: Shanghai, Type: Green Card or bank book, Code: ATM code (If you type in the wrong code for three times, decode will follow automatically the next day. Please go to a counter if the code has been locked for more than fifteen days.) Telephone: 63066595, 63065193

Payment for ICBC, ABC and Construction Bank will begin soon.

10.Which payments can be paid right now?
Currently, the following utilities fees can be paid: mobile fee for Shanghai Mobile and Shanghai Unicom; City Gas Fee: Dazhong Gas, Shibei Gas and Pudong Gas; Water Fee: Shibei Shui, Shinanshui, Minhang Shui, Songjiang Shui, Pudong Shui (Weiliya); Telephone Bill: Shanghai Telecom, Tietong, Internet Fee and Netcom; Electricity Fee: Shanghai Power Company. Recharge for other utilities fees will be realized gradually, and such payment will gradually be realized in Feng Xian, Jia Ding, Nan Hui and other suburban areas.