Tax-relieving policies to extend to Shanghai's Hi-Tech Park

Three preferential national policies aimed at relieving tax burdens of high-tech firms are extended to Shanghai's Zhangjiang High-Tech Park, according to the municipal government.

The pilot programs include two pre-tax deductions that will cut research and development expenses and those of personnel training, as well as a payment extension of personal income tax, said Hou Jin, vice-head of the high-tech zone.

Enterprises are encouraged to pay for five insurances and old-age pension to retain research workers. A pre-tax deduction is allocated in proportion to 150 percent of the actual amount of R&D expenses.

Training expenses, in the amount of up to eight percent of personal income, can be waived when enterprise income taxes are calculated.

Personal tax payment can be made in installments in five years, upon verification of a competent taxation authority, if equity shares are awarded to research fellows as incentives.

Similar policies were first introduced in Zhongguancun, Beijing's high-tech zone. All the pilot programs will expire by Dec 31, 2014.