Investment
Tax Incentives
A tax incentive has value only when the company genuinely qualifies, can maintain the required business substance and can support the position with current records. Investment and location decisions should remain viable without the incentive, with the benefit modelled separately under base and downside scenarios.
Testing Incentives Against the Real Business Model
01
Define the business facts first
Record activities, products, technology, people, assets, location, revenue and investment independently of incentive language.
Business baseline: Activity / People / Assets / Revenue / Location
02
Verify eligibility and duration
Identify the official basis, qualifying conditions, approval or filing process, effective period, review points and events that could end the benefit.
Eligibility record: Source / Conditions / Process / Duration / Loss trigger
From Eligibility to Sustainable Tax Position
03
Model net value and downside
Calculate the expected benefit after compliance cost, timing, uncertainty and the effect of failing to qualify or retain status.
Scenario model: Benefit / Cost / Timing / Probability / Downside
04
Maintain evidence through the lifecycle
Assign owners for personnel, activity, asset, accounting and application records, periodic reviews and change notifications.
Evidence map: Requirement / Record / Owner / Review / Change
Incentive Decisions Before Investment
Guide
Guidance on China tax-incentive eligibility, substance, applications, economics, documentation and lifecycle control.
Comparison
Comparisons of incentive and location scenarios across net value, conditions, timing, certainty and operating fit.
Review
Reviews of qualifying activities, people, assets, records, approvals, ongoing conditions and downside exposure.
FAQ
Answers to management questions on eligibility, locations, applications, duration, evidence, changes and loss of benefit.
Resources
Eligibility assessments, source records, scenario models, application files, evidence registers and review schedules.
Tool
Tools for eligibility screening, net-benefit analysis, location comparison, evidence tracking and change review.
Case
Examples of how foreign companies assessed incentives, documented substance and avoided building projects around uncertain benefits.
News
Developments affecting tax-incentive programmes, eligibility, administration and location decisions.
How to Use the China Tax Incentives Hub
Use Guide to frame the work, Comparison and Review to test alternatives and risk, and FAQ and Resources to prepare the working file. Tool and Case support the management recommendation; News confirms whether the underlying assumptions remain current.
Management should approve the investment case without depending on an incentive, then assess the benefit under verified current conditions. Tax advisers should confirm eligibility and documentation for the specific company and project.