Zhongguancun Science Park Establishes New RegulationsZhongguancun Science Park, the so-called Silicon Valley in China, has enacted new regulations to attract investments.Under new provisions, institutional as well as individual investors will have legal protection over their investment capital, and other property rights. The new regulations eliminated previous regulations on an enterprise's scope of business. The park offers tax exemptions to all enterprises for the first three years. A 50 percent tax reduction is offered through the fourth year to the sixth. Thereafter, a 15 percent tax will be levied as opposed to the 33 percent standard corporate tax rate. If an enterprise generates more than 40 percent of its annual revenue from exports, the tax rate is further reduced to 10 percent. |
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