Ｎｕｒｔｕｒｉｎｇ　ＳＭＥｓ

Practical financial, tax and accounting issues affectinginternational SMEs during the early stages of investment.

VAT and customs policies

Chinese customs provides preferentialtreatment to foreign companies as a tool toencourage them to set up operations in certainindustrial sectors. For example, some foreignenterprises are entitled to the preferentialvalue-added tax (VAT) treatment to importequipment tax-free and use such equipmentwithin the total investment. Investors need tobe aware of these policies to correctly plantheir investments and ultimately save costs.