TNAG-1458-FCO40-1982-Relations-between-Hong-Kong-and-China-1986 — Page 73

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industrial joint ventures in the economic and

technological development districts are exempted from such

a tax.

19.

The Industrial and Commercial Consolidated Tax,

which is levied on enterprises and individuals engaged in

industrial production, import business, retail business,

transportation and service trades, applies also to

Sino-foreign joint ventures. But imports of machinery, spare parts and other necessary materials in the form of capital investment, and imports of commodities which are necessary for producing exports, may be exempted from the

consolidated tax with the approval of the department concerned (3).

Import duties for these items may also be

exempted. Commodities produced by the joint ventures for export, except those which are under regulation by the state, are also exempted from the Industrial and

Commercial Consolidated Tax.

20.

Apart from these major types of taxes, various

local taxes, including real estate tax and vehicle and

vessel licence tax, are levied at the discretion of the

local authorities.

(c) Controls exercised by the Chinese government

21.

To ensure that the original objectives of setting

up Sino-foreign joint ventures are met, the Chinese government exercises controls over their operation. Agreements concluded between the joint venture partners must be submitted to the Foreign Investment Commission of

(3)

After the opening of the Second Control Line, the imports of all goods (except mineral oils, cigarettes and wine and liquors) into the Shenzhen Special Economic Zone were exempted from the Industrial and Commercial Consolidated Tax.

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