The Chairman of the Association for Industry and Commerce, Mr. Bo Feng, suggested that the Government should plan for the free special economic zones. The Ministry of Finance has clarified the following aspects of the customs and taxation:
First, provide convenient and preferential measures to promote the development of free trade ports
(1) for the development of the world. In the operation management mode to enhance national competitiveness and promote economic development, China has promoted the establishment of a free trade port area since 1992. The distribution includes six seaports and one airport. The central part is Taichung Port and the southern part is Kaohsiung Port and Anping Port. It is a special economic zone outside the territory of China. The zone provides foreign-funded ports for the operation of goods and self-use machines and equipment, and is exempt from customs duties, excise taxes, business taxes and other related taxes and fees. In terms of customs clearance, the provision of cargo control, computer connection customs clearance and accounting processing operations shall be subject to independent management; goods in the tax zone shall be deemed to be exported as free trade ports, and may be applied for reduction, exemption or refund of relevant taxes and fees; Goods entering the bonded area and taxation area of the port area may apply for customs clearance by means of "reporting by month"; free goods, machinery and equipment from free trade port areas are sent to the taxation area for repair, inspection, testing and processing. When the tax guarantee and the foreign goods that are entrusted for processing are imported, it is necessary to complete the customs clearance after the customs clearance of the goods, and the customs clearance measures for the manufacturers outside the region are sufficient to reduce the customs clearance costs of the industry and enhance the competitiveness of the industry.
(2) Section 29 of the "Regulations on the Administration of the Establishment of Free Trade Port Areas" provides tax-free concessions on operating profits of similar-type taxation agreements. The profit-making enterprise only engages in activities of preparatory or auxiliary nature in China, and engages in the procurement of goods in the free port area. Input, storage or transportation, the income from sales of goods (regardless of domestic or foreign) is exempted from income tax for profit-making business. It is beneficial for enterprises to use the superior geographical position of Taiwan to set up a logistics center for immediate supply and promote the development of China's industry.
Second, provide relevant tax incentives, assist enterprises to invest in Taiwan, and take into account the sound taxation.
(1) Encourage Taiwanese businessmen to repatriate the real investment of funds in
response to the investment needs of Taiwanese overseas funds to return to Taiwan, the Ministry of Finance and relevant ministries will provide The special taxation measures for overseas returning funds will follow the international norms of money laundering prevention and control, and will not affect the evaluation results of the Asia-Pacific anti-money laundering organization; funds should be directed to real investment, effectively promote economic development, increase employment, and avoid causing domestic manufacturers to tax fairness. Three major principles, such as disputes, carefully consider the relevant taxation matters.
(2) Assisting in the retention of outstanding foreign talents
In order to introduce high-level foreign talents, Article 9 of the "Foreign Professionals Enrollment and Employment Law" stipulates that certain national professionals who meet certain conditions will work in Taiwan for the first time and become residents of China and earn more than NT$ (the same below) The three-year period from the taxable year of 3 million yuan, the salary income of more than 3 million yuan is partially exempted from tax, and its overseas income does not need to calculate the basic personal tax amount according to the basic tax amount regulations, and provide tax incentives to assist the enterprise transformation. Upgrade and improve international competitiveness.
(3) Encourage the acceleration of industrial wisdom upgrading and transformation, and continuously optimize the industrial innovation environment. The
Ministry of Finance and the Ministry of Economic Affairs are engraved on the Industry Innovation Regulations to provide enterprises with the purchase of smart machinery and 5G system investment offset, R&D expenditure investment offset, and intellectual property rights. Slow classes, creators are assigned to the stocks of academic institutions, class rewards, low rewards for employees, low-tax incentives for the limited partnership, and the application of tax incentives for individuals and angels. . In addition, in order to further encourage enterprises to make substantial investments in retained earnings to enhance economic kinetic energy, the research and development of enterprises to provide real investment in undistributed surplus can be classified as the deduction of undistributed earnings, exempt from 5% of profit-making business income tax. .
Third, promote the income tax optimization tax system, significantly reduce the negative gap between
domestic and foreign dividend income tax, from 107 years since the implementation of the new dividend income tax system, with a moderate increase in profit-making business income tax rate of 20% and foreign share dividend withholding rate of 21%, domestic investors major investors The highest total tax burden for the two stages of dividend income was reduced from 49.68% to 42.4%, and the total tax burden on foreign dividends increased from 33.6% to 36.8%. The gap between domestic and foreign tax burden was significantly reduced from 16.08% to 5.6%. In the tax-free or low-tax countries or regions, the establishment of foreign legal persons to avoid the tax avoidance costs and tax risk costs of tax evasion, under the new system, the internal and foreign shareholders' dividend income tax burden is still equitable, which helps to increase investment willingness and greatly reduce the use of fake Foreign capital avoids tax incentives and at the same time takes into account the fairness of taxation.
Fourth, in line with international trends and China's national conditions, timely review of the taxation of goods tax items
China's cargo taxation items include rubber tires, cement, beverages, flat glass, oil and gas, electrical appliances and vehicles, mainly affecting health (such as sugary drinks) and energy consumption (such as oil and gas, air-conditioning). And the correction of external non-interest (such as cement, rubber tires, steam locomotives) taxation of goods, is still a trend of international taxation of goods of a nature. In addition, 10% of the total revenue of the goods tax shall be allocated to the local government by the central government. It is advisable to consider the overall tax system as a whole and evaluate the overall taxation system. The Ministry of Finance will review the review of the taxation of goods tax as a supporting measure for energy tax and will Continued to consider the policy of the Energy and Carbon Reduction Office of the Executive Yuan. In line with China's carbon reduction path, the effectiveness of non-taxation tools and the domestic and international economic situation, we will continue to listen to the opinions of all parties, collect relevant taxation experience from abroad, and maintain the fairness of taxation. Create a friendly tax environment. The stamp duty is 100% municipality and county (city) tax. It is an important source of income for local governments. At a time when the current fiscal situation is not sufficient and there is no substitute for financial resources, it is not appropriate to abolish the stamp duty so as not to affect local governance.
The Ministry of Finance stated that the concept of a free special economic zone or other special economic zones is to loosen the relevant laws and regulations and promote the flow of people, logistics and financial flows. Considering that China has established a free trade port area and the relevant laws and regulations and operational mechanisms are perfect, it is recommended to continue to promote the development of a diversified business model and create high value-added industries to promote economic development.
In recent years, international organizations have reviewed the relevant national tax incentives. The attitude of countries using taxation tools has become more conservative. The EU has recently updated the list of tax-uncooperative countries. China's delisting from the list of observers will provide relevant tax in the future. The concessions should conform to the international inspection standards to avoid the formation of harmful taxation practices, which would be included in the list of tax non-cooperation by international organizations and affect the competitiveness of the country.
Source: Ministry of Finance