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POLICIES FOR INVESTMENT

In order to encourage the development of non-pub-lic ownership economy,Maoming Municipality formulated and issued policies and measures like‘Stipulations for Further Encouraging and Supporting of Non-public Ownership Economy by CCPC Maoming Municipality Com-mittee and Maoming Municipal Govemment’and“The lmplementing Measures of‘Decisions to Speed Up the Development of Non-state Operating Economy by CCPC Guandong Province Committee and Guangdong People`S Govemment’by CCPC Maoming MuniCipality Committee and Maoming MuniCipal Govemment",to offer favors to investors.

1.TaxFavors

Taxation policies Shall be carried out in accordance to respective Stipulations by the State Council and Guangdong Province for investing in Maoming by investors from home and abroad.
Charging items stipulated by municipality,county (municipality and distriCt),town and departments and unitS (including province`s subordinating units) on their own,Shall be eliminated along With the managing fee for individual industry and enter-prlses originally intended for company Systemized private enterprises

2.Land Utilization Favors

2.1 Partial or complete free land utilization shall be determined on the basis of the investment Scale of enterprise`s fixed assets and the level of Science and technology content,in accordance With respec-tive Stipulations by the state,when considering the Utilization of municipal industrial lands by pri-vate enterprises and foreign investing enterprises possessing state grade new products determined and registered as a project by Science and technol-ogy administration authorities or invention patent products being produced for the first time in the province or municipality.

2.2 When a production type private enterprise or foreign enterprise is to use municipality-owned in-dustrial land,the price for the government to Sell its land as a standard shall be?75 yuan/m2 for straightened-out land and Y45 yuan/m2 for land not being straightened out respectively.

3.Favors Regarding Water and Power Supplies

3.1 Private enterprises and foreign enterprises Shall enjoy priOrity When applying for power consump-tion for new projects.Electrical installation engi-neering shall be Charged only for 60% of the inStal-lation profit.

3.2 When private enterprises and foreign enter-priSeS start new businesses Within the urban water supply networks,the prie for production water shall enjoy a discount of ?0.10 yuan/m3 on the ba-Sis of in-pOsition water price three years from the start of operation.Meanwhile,price of water for construction Shall enjoy a discount of ?0.20 yuan/m3 on the basis of in-position water price.

4.Relaxation in lnvesting Fields and Operation Conditions

All industries and fields shall be Opened and awarded with the right of fair competition on the condition that they comply With the Stipulations of the state laws and regulations and industry poli-Cies or they’re opened tO home and abroad after the joining of WTO.Project filing system Shall be applied for investment in projects encouraged by industry policies of the country,the province and municipality,unless Otherwise stipulated by the country or the province.Enterprises With the Capi-tal reaching up to 60% of the required sum shall be registered as limited company and awarded With business licenses on the condition that the remain-ing part of capital shall be made Up Within one year.

5.Key Enterprises Supported by The Manicipal Gov-ernment

ln five continuous years Starting from the year 2003,a specialized fund to Support small to medium sized enterprises Shall be budgeted by municipal finan-Cial department to apply Chiefly in Supporting the establishing their credit guaranteeing system and service System as well as Supporting theit techni-cal innovation.Four key categories of private en-terprises Shall be Supported,including resource processing enterprises,Scientific enterprises,for-eign Oriented enterrprises,labor-concentrated en-terprises and those employing Off-position personnel.

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