1. In order to do well with foreign investment introduction and to bring about economic development, these measures are promulgated in accordance with the related regulations of the central government and the province.
2. Foreign investors (including those from Hong Kong, Macao and Taiwan) are encouraged to invest in Gaoming City in the forms of Joint Venture, Cooperation, Wholly Foreign Investment and Processing and Compensation Trade. They are also encouraged to exercise contractual operation or leasing management over the existing enterprises, or to buy part of or all of the property right of the enterprises.
3. Preferential measures on taxation:
a. Foreign invested productive enterprises with an operative period of 10 years or more shall be exempted from income tax for the first 2 profit-making years, and allowed a 50% reduction for the coming 3 years.
b. High-technological enterprises may enjoy 3 more years of 50% reduction on income tax after the above-mentioned 5 years of taxation preference.
c. For the first year of operation, new enterprises with foreign investment shall enjoy a reimbursement of half the proportion of the value-added tax retained by the municipal finance department. High-technological enterprises or enterprises with an total investment of over 10 million RMB shall have a preference that in the first 2 years of operation, all the proportion of the value-added tax, the business tax and the income tax retained by the municipal finance department be reimbursed, while in the coming 2 years 50% reimbursed.
d. Foreign invested enterprises engaged in agriculture, forestry or farming, shall enjoy a reduction of up to 10% to 30% on income tax for the coming 10 years after the above mentioned 5 years of income tax preference.
Projects of energy, transportation, port, wharf and technology-intensive
encouraged by the state, and the projects with a investment of over 30 million
RMB and a long-term profit-return period, could be given a preferential
income tax rate of 15% upon the approval of the government.
e. Enterprises whose value of export products amounts to 70% or more of the
total production value of the year shall enjoy a 50% reduction on the income
tax of that year. Enterprises who, as stated above, have enjoyed an income tax
rate of 15% shall be given a 5% more reduction for the year that the export
value exceeds 70% of the whole production value.
f. For new enterprises, their exported products can enjoy the national drawback
tax policies for exported products. Upon the approval of the tax authorities,
export-oriented enterprises could be regarded as general taxpayers of value-
added tax and use the special invoice for value-added tax.
g. Enterprises engaged in processing and assembling and compensation trade
shall be exempted from the value-added tax and the consumer tax on the
processing fee and the products processed by themselves and anyone else they
appoint .
h. House property tax shall be exempted for 5 years for enterprises held by
overseas Chinese or by compatriots from Hong Kong, Macao and Taiwan, and
for 3 years for those with foreign investment.
i. Enterprises with foreign investment shall be provisionally exempted from land use tax, city construction tax, real estate investment orientation regulation tax and educational additive fee. Enterprises engaged in agriculture, forestry, farming, energy, port and wharf shall be allowed to get exempted from house property tax and land use tax.
j. Joint-venture enterprises transferring their stock right could, upon approval of
the tax authorities, be exempted from the business tax and land-value-added
tax raised by house and land property transference.
k. For high-tec enterprises, the income from technology transference shall be
exempted from the business tax upon approval of the tax authorities.
l. For new enterprises engaged in transportation, tele-communication, public
utilities, commerce, material service, foreign trade, storage, resident service,
food and drink service and education and sanitation service could, upon
approval of tax authorities, be exempted from income tax for one year.
m. For projects constructing bridges (or roads) by raising funds or loans, the
business tax imposed on the toll income shall be reimbursed by the local
finance department during the period of paying debts.
n. Enterprises reinvesting its profit to increase its own registered capita or to build
up new projects with an operation period of not less than 5 years shall get a
reimbursement of 40% of the paid income tax on the reinvested profit upon
approval of tax authority. If the profit is reinvested in building or enlarging
export-oriented or high-tec-oriented projects, the paid income tax imposed on it
shall be totally reimbursed.
o. All productive enterprises with foreign investment shall enjoy a preferential
income tax rate of 24%.
p. Profits of foreign investors acquired from enterprises with foreign investment
shall be exempted from income tax.
q. Agricultural products produced and sold by enterprises or individuals
themselves shall be exempted from value-added tax.
r. For enterprises whose products are named by the central government or by the
provincial government as 'new products', the proportion of income tax and
value-added tax retained by the local finance department shall be reimbursed
for 3 years for those named by the central government and for 2 years for those
named by the provincial government.
s. Special agricultural products from newly explored barren hills, wasteland,
beaches or water-surface shall be exempted from agricultural special product
tax for 3 years from the time of profit making.
t. We encourage foreign investors to buy parts or all of the stock rights of the
existing domestic enterprises. Investors who have bought over 50% of the
local enterprises owned by the state or by the collective shall enjoy the
preferential policies given to enterprises with foreign investment, and be
given a 30% discount for the administrative fees for the transference of land
and house property.
u. New enterprises with foreign investment shall be imposed at a preferential
standard of 20 RMB per month for each employee for the allowance given to
domestic workers by the state. Enterprises confirmed by authorities as export-
oriented or high-tec-oriented shall be exempted from this fee.
4. Preferential measures on administrative fees:
a. Enterprises having a s
aff of over 100 people shall be free of charge of the
'casual laborer regulation fee' for 1 year. High-tec enterprises shall be given a
50% discount in the coming year.
b. No other pollution fees than 'pollution evaluating fee', 'pollution survey fee' and 'pollution discharge fee' which are stipulated by the provincial authorities shall be imposed on enterprises with foreign investment. An exemption of these fees should be given to the enterprises who never bring about environmental pollution.
5. Preferential measures on land usage and capital construction:
a. Enterprises (excluding those engaged in real estate exploring) with foreign
Investment shall enjoy prior arrangement when buying land for capital
construction on the basis of general layout of city planning. And a discount of
up to 20% to 30% shall be given to the price of land usufruct compared to the market price. For enterprises with a total investment of over 30 million RMB, or those who can promote industrial progress, or those engaged in energy, transportation or agriculture, land usufruct shall be provided according to the cost price, and , if they hire land, a discount of 15% to 25% shall be given to the hire price regarding the term of the lease.
b. The term of land usufruct for enterprises with foreign investment can be as long
as 50 years. It can be applied for postponement.
c. Enterprises with foreign investment who have paid rent for land and factory
buildings shall be exempted from 'infrastructure fee' and 'site usage fee'.
d. Foreign invested civil commonweal projects like gardens, virescence, environmental protection, education, and social welfare shall be exempted from 'building declaration fee' for constructive projects, and only 10% of the fee should be paid by the iatrical projects. Productive enterprises with a total investment of over 10 million RMB shall enjoy a reduction of 30% of the fee.
6. Preferential measures on power and water supply:
Enterprises with foreign investment have the priority of quicker arrangement of installation and quicker access when they apply for power and water supply. Postponement, installment or reduction would be given for the payment of ' water and power capacity fee' regarding to the different conditions of the enterprises. If an enterprise has a total investment of over 10 million RMB, it shall be given a reduction up to 30% of the fee.
7. Other preferential measures:
a. Productive enterprises with foreign investment may determine and adjust the
proportion of products sold domestically or exported by themselves, according
to the demands of the market. Approval authorities do not, unless otherwise
stimulated, or unless the products need State Quota License, restrict the said
proportion.
b. Approving authorities should simplify the approval procedure and improve working efficiency, and publish regulations in order to provide a high quality and safe, comfortable investing environment. The Foreign Investment Service Center offers foreign investors all-in-line service. It provides all kinds of help on project approval, construction declaration and any other problems.
c. Banking departments should strengthen communication and understanding with enterprises, provide up-to-door services and improve the quality of financial service.
d. Super size enterprises or enterprises which bring about important influence to our city shall be provided more preferential measures other than the above mentioned regarding to real conditions of them.
8. Preferential measures for enterprises with investment from other cities or
provinces shall be handled with reference to these regulations.
9. These preferential measures shall come into force from the date of its promulgation. Where other similar regulations promulgated by the city before are not in conformity with these measures, these measures govern.