Shanghai Pilot Free Trade Zone
Shanghai Pilot Free
Trade Zone: Shaping of
China’s Future Foreign
Investment Environment
By Gladie Lui
Introduction
The official launch of China’s pilot Free Trade Zone (FTZ) in Shanghai on
September 29, 2013, marked a significant milestone for the country’s economic reforms and its strategy of opening up its domestic markets for foreign investors.
The FTZ the provision of services and help
TZ iss expected to liberalize trade ade and th develop opportunities available shoree companies. main purposes to dev lop opp ortuni es av ailab to offsh c m nies. The mai n purp ses oof
FTZ
the FT
Z aree to:: thee effic efficiency functions; iimprove prove th n and eeffectiveness iveness of ggovernment overnm nt func ns; open up the economy to new investment opportunities; accelerate the development of trading; widen the opening up of 18 service industries, and align the existing legal framework with respective to foreign investments.1
Widely perceived as a testing ground for the shaping of foreign investment landscape, the FTZ covers an area of 28 square kilometers in Shanghai and comprises four zones specially administered by customs authorities: the Waigaoqiao
Free Trade Zone, Waigaoqiao Bonded Logistic Park, Yangshan Free Trade Port
Area and Pudong Airport Free Trade Zone.
Tax Incentives
GLADIE LUI is an Associate Professor in the Department of Accountancy at
Lingnan University in Hong Kong.
JULY–AUGUST 2014
The FTZ offers several tax incentives to promote investment and trading. The policies and measures implemented in the FTZ will be further developed over the coming years and are expected to be replicated in other parts of China. Examples are as follows.
China’s Ministry of Finance and the State Administration of Taxation jointly issued the Circular on Corporate Income Tax Policies Concerning Asset Restructuring Activities Using Non-monetary Assets for Investment Purposes by Enterprises in the FTZ (Cai Guan Shui [2013] No.91). It specifies the following:
© 2014 G. LUI
31
Trade Zone: Shaping of
China’s Future Foreign
Investment Environment
By Gladie Lui
Introduction
The official launch of China’s pilot Free Trade Zone (FTZ) in Shanghai on
September 29, 2013, marked a significant milestone for the country’s economic reforms and its strategy of opening up its domestic markets for foreign investors.
The FTZ the provision of services and help
TZ iss expected to liberalize trade ade and th develop opportunities available shoree companies. main purposes to dev lop opp ortuni es av ailab to offsh c m nies. The mai n purp ses oof
FTZ
the FT
Z aree to:: thee effic efficiency functions; iimprove prove th n and eeffectiveness iveness of ggovernment overnm nt func ns; open up the economy to new investment opportunities; accelerate the development of trading; widen the opening up of 18 service industries, and align the existing legal framework with respective to foreign investments.1
Widely perceived as a testing ground for the shaping of foreign investment landscape, the FTZ covers an area of 28 square kilometers in Shanghai and comprises four zones specially administered by customs authorities: the Waigaoqiao
Free Trade Zone, Waigaoqiao Bonded Logistic Park, Yangshan Free Trade Port
Area and Pudong Airport Free Trade Zone.
Tax Incentives
GLADIE LUI is an Associate Professor in the Department of Accountancy at
Lingnan University in Hong Kong.
JULY–AUGUST 2014
The FTZ offers several tax incentives to promote investment and trading. The policies and measures implemented in the FTZ will be further developed over the coming years and are expected to be replicated in other parts of China. Examples are as follows.
China’s Ministry of Finance and the State Administration of Taxation jointly issued the Circular on Corporate Income Tax Policies Concerning Asset Restructuring Activities Using Non-monetary Assets for Investment Purposes by Enterprises in the FTZ (Cai Guan Shui [2013] No.91). It specifies the following:
© 2014 G. LUI
31