Are enterprises with less then 25% foreign investment subject to the same tax treatment as other FIEs?
Unless there are any laws to the contrary, FIEs with less than 25% foreign investment are subject to the same MOFTEC and SAIC registration procedures as any other FIE, in addition to being required to register with SAFE.
Under the new guidelines, enterprises with less than 25% foreign investment are not entitled to tax benefits afforded to other FIEs. Further, they are not given any tax exemption for the importation of equipment and goods using funds from their capital input to the enterprise.
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