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New legal era for Shanghai trade zone

By SHI JING | China Daily | Updated: 2013-09-27 08:44

Taxes: A major concern for all

Taxes are another major area of concern for foreign enterprises. Once a company qualifies for tax breaks in the FTZ, it will have a top income tax rate of 15 percent, compared with the present rate, which can be up to 33 percent, said Chen Li, chief securities analyst with UBS AG. That's a big saving for the foreign enterprises that qualify, he added.

New legal era for Shanghai trade zone

Special Coverage: Shanghai FTZ

Any other local regulations that aren't in line with the general plan of the FTZ will be adjusted accordingly for a three-year trial period, the Shanghai municipal legislature's statement said.

Legal and regulatory changes will take effect from Oct 1.

Central government departments that have responsibilities connected with the FTZ and the Shanghai municipal government will issue laws and regulations regarding the admission of foreign investment and registration of foreign-invested companies to ensure a smooth transition, according to Ding Wei, director of the legislative affairs commission of the Standing Committee of the Shanghai Municipal People's Congress.

Wang Xinkui, counselor of the Shanghai municipal government and a key architect of the FTZ plan, reportedly told a forum in Shanghai on Thursday that there will be no offshore duty-free policy in the zone.

Also, local authorities in Shanghai denied media reports that China will lift its ban on Facebook and Twitter in the FTZ, according to the State-owned media outlet people.com.cn.

Internet administration will remain unchanged in the FTZ. There will be no ideological arrangement in this area.

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