TNAG-1458-FCO40-1982-Relations-between-Hong-Kong-and-China-1986 — Page 94

Income tax

Joint

venture income

withholding

tax, levied

on the

amount

repatriated

Equity joint venture

Joint venture income tax at 30% of gross income. Surtax at 10% of joint

venture income tax. Altogether 33% of gross

income.

10% of the amount

repatriated.

Contractual joint venture

For joint venture a) described above, 33% of its 20

gross income as in the case of an equity joint venture.

For joint venture b) described above, each of the Chinese and foreign parties pays its own income tax on the profit received, (if in terms of product, the product should be represented in terms of Renminbi), at the progressive rates 20 40% of the profit received, plus a surtax of 10% of the income tax.

For joint venture a) described above, 10% joint venture income tax shall be levied on the amount repatriated.

For joint venture b) described above, no such

tax shall be levied.

A

Joint development

40% at progressive rates of the portion of income received, (if in terms of product, the product should be valued in Renminbi).

Nil

Compensation trade

Nil

Wholly foreign-

owned enterprises

20 - 40% at progressive

-

rates of the portion

of income received.

Nil

Requirements uncertain.