China (Shanghai) pilot free trade zone will strengthen collaborative innovative development with the Yangtze river delta, the state council said in a statement released today. We will support Chinese and foreign investors in setting up special funds for joint innovation in new areas, cooperate on major scientific research projects, and allow the relevant funds to be freely used in the Yangtze river delta. We will support private funds initiated by domestic investors overseas to participate in the financing of innovative technology enterprises in the new area, and those who meet the requirements can invest in the Yangtze river delta region. We will support the expansion of competitive industries in new areas to the Yangtze river delta to form industrial clusters.
Taxation: implementing internationally competitive taxation system and policies. We will expand the scope of the value-added tax policy for service exports in the new regions, and study new tax policies for overseas investment and offshore business development. The enterprise income tax will be levied at a reduced rate of 15% within 5 years from the date of establishment for the enterprises engaged in the production and R&D of core processes in key fields such as integrated circuits, artificial intelligence, biomedicine, and civil aviation that meet the requirements in the new film area.
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