Tax Breaks for Malinvestment and R&D

Straits Times: China pledges tax breaks for private infrastructure investors
Beijing has been encouraging local bodies to seek private investment for infrastructure projects to cut down on long-popular methods such as off-balance sheet borrowing which absolve firms of legal claims or responsibilities.

Infrastructure investments will "not only stimulate growth, but also address weak links in the economy and lay a solid foundation for long-term development", NDRC secretary general Li Pumin said earlier.

Xinhua: Improved tax policies to promote innovation, entrepreneurship
The structural tax reduction policy will encourage firms to invest more in innovation and startups, and promote industrial upgrading.

Costs for part-time researchers, experts' consulting fees and other such charges are set to enjoy the preferential tax policy.

It was also decided that taxable income for more venture capital enterprises will be slashed to encourage investment in small and medium high-tech firms, starting from Oct. 1.

...It was also urged that the construction of Shanghai International Financial Center and pilot financial reform measures to be rolled out in the Shanghai Free Trade Zone (FTZ) should both be expedited, as they supported the opening up of China's financial businesses.

The convertible amount of the yuan-denominated capital account will be increased, and free-trade accounts in Shanghai FTZ will be given more functions.

In addition, pilot programs to support investment abroad will also be launched, and an integrated supervision system for RMB and foreign currencies will help enhance risk alert and control.

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