Tax Incentive for Agriculture, Forestry, Animal Husbandry and Fishery Industries

Income derived by an enterprise from projects in the agriculture, forestry, animal husbandry or fishery industry may be eligible for exemption from or reduction of CIT.

The tax exemption and reduction on income derived by an enterprise from projects in agriculture, forestry, animal husbandry and fishery refer to:

1. Income derived by an enterprise engaging in the following projects shall be exempt from CIT

(1) The growing of vegetables, grains, tuber crops, oil plants, beans, cotton, hemps, sugar crops, fruits and nuts;

(2) The selection and cultivation of new agricultural species;

(3) The growing of Chinese medicinal herbs;

(4) The cultivation and growing of forests;

(5) The rearing of livestock and poultry;

(6) The harvesting of forestry products;

(7) Irrigation, preliminary processing of agricultural products, veterinary services, promotion of agricultural technologies, operation and maintenance of agricultural machineries and similar agricultural, forestry, animal husbandry, fishery services projects;

(8) Fishing in high seas.

2. The CIT applicable to an enterprise engaging in the following projects shall be reduced by 50%:

(1) The growing of flowers, tea plants and other crops used for beverages and spices;

(2) Sea and inland water aquaculture

  Enterprises engaging in any projects that are restricted and prohibited by the State shall not be entitled to the preferential CIT treatments under this Article.