Preferential Policies For Software and IT Companies Investing in Dalian

by Adam Livermore, Senior Associate, Dezan Shira & Associates

Dalian High Technology Park, in the city's HIDZ, is gearing up to become the "Bangalore of the Far East", and has already attracted a host of multinational companies working in the areas of software development and business outsourcing. Major players like Citibank, Dell, Hewlett Packard, and Accenture are already heavily involved in projects, forming a nucleus around which a larger industry is expected to develop.

In order to encourage further expansion of this industry, the local government is offering a range of incentives to companies looking to locate operations within the Park. Many of these incentives will be familiar to investors, as they relate to Foreign Enterprise Income Tax waivers, VAT and customs duty reductions for software developed by the Chinese entity, and future income tax rebates in the event profits are reinvested to expand local operations. However the local government is also directly addressing one of the major concerns of companies in the IT and professional services sector in China - staff retention.

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This article included in China Briefing Magazine
December 2006: HANDLING YOUR ANNUAL AUDIT, LICENCE RENEWALS, COMPLIANCE & DIVIDEND DECLARATIONS	Other articles in this issue: Recent Revisions to Export Tax Rebates by Alberto Vettoretti, South China Regional Partner, Dezan Shira & Associates Preparing For Your Mandatory Annual Audit In China by Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates