Among the major free trade zones in China, Quingdao FTZ is one of the leading ones. The units operating out of this FTZ are offered a considerable number of benefits and advantages in terms of tax benefits and relaxations. Efforts are on to develop the Quingdao FTZ in China as a major free trade zone in the region that will provide the best of trade and export facilities to the units operating out of the zone.
Companies are allowed to secure processing orders and enter into trade contracts with other units in the zone. They can also trade with companies outside the zone with designs, raw materials and equipments.
Units in the Quingdao FTZ in China are allowed to purchase raw materials and semi-finished products made in China through domestic trade and processing inside the zone.
Processing units in the Chinese free trade zone of Quingdao may apply for permission to sell a part of their products inside the country after paying tariff and securing a license for imported materials.
The materials imported at the Quingdao FTZ in China are fully bonded.
When its products are shipped across the country, tariffs will be imposed on the imported raw materials.
The warehousing units inside the Quingdao free trade zone can store all kinds of goods except those prohibited by the state. Imported goods into the domestic market can be stored here too.
Domestic and international business organizations operating from the Quingdao FTZ can display their import and export products and use the exhibition halls.
Usual warehousing operations such as sorting, sub-packing, labeling, marking are allowed for the warehousing units at the free trade zone.
The companies registered in foreign lands have to form as independent legal entities and secure a license for doing trade, imports and exports from the Quingdao FTZ in China.
Trading companies do not have to pay any VAT while doing trade with each other and with import and export trade provided they have operations within the Quingdao FTZ in China.
Trading units within the Quingdao FTZ are allowed to retain in full their foreign exchanges and carry on with the settlement and sale of exchange in banks, within the guidelines of concerned regulatory authorities.
Irrespective of the nature of businesses and foreign trade handled by companies inside the Quingdao free trade zone, all are treated as exports and relevant benefits are accrued to them.
Trading companies in the Quingdao FTZ in China are levied up to a maximum of 15% enterprise income tax rate. However, companies with more than a decade of operations at the Quingdao FTZ are provided with a tax holiday in the first year of profits and 10% flat income tax for the next two consecutive years.
In addition to the features discussed, the Quingdao FTZ in China provides for a simplified and relaxed trade regime. From tax rebates to relaxation in customs and positive trade policies, Quingdao FTZ has all for the companies to make this one of the popular free trade zones in China.
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