Social capital and individual
will be identically entitled to enter
and engage in the cultural fields into
which the foreign capitals are allowed
to enter by commit-ment of our country
upon entry of WTO. Apart from the news
media which has been exclusively controlled
and managed by the country, social bodies,
entreprises (including individually-run
cultural enterprises), individual and
foreign capital may enter and engage in
cultural fields such as schools, hospitals,
sports facilities and cultural facilities
(including concert hall, museum,art gallery,
theatre, children's palace, and science
exhibition hall) according to relating
policies.
The following preferential
policies will be granted to the newly-established
welfare cultural establishments (including
concert hall, museum,art gallery, theatre,
children's palace, and science exhibition
hall) with investment amounting to over
10 million yuan or above.
Power
& water
Water & power installation application
fee,water resource fee, will be exempted
.
Land
1) Land for the newly-established public
welfare cultural establishments will be
allotted according to document titled
Announcement of the State Council on Enforced
Management on the Land Assets which is
numbered Guofa[2001]#15. Class 2 expenses
for the construction projects and relating
supplementary facilities of the welfare
cultural establishments will be fully
exempted or partly exempted.
2) The cultural establishments are en-titled
to manage, lease and transfer land, and
real estate they own.However the application
for management, lease and transfer on
land use right and buildings on the land
acquired by way of governmental allotment
must be subject to approval of the relating
land administration department at county
level or above and the related necessary
procedures for paid land use right must
be completed. If the land use right will
be retrieved by the country, 60% of the
proceeds (with deduction of taxes levied
by state and province as stipulated) of
the transfer may be refunded to the former
land users for construction of cultural
facilities. The total amount of proceeds
accrued from land development and transfer
should be exclusively refunded for cultural
infrastruc-tural construction.
3)Land will be allotted by local govern-ment
for establishment of primary school, high
school, kindergarten with a campus area
of 33,000 square meters, constructed area
of classroom of 15,000 square meters,
24 classes and over 1200 students. Land
will also be allotted by local government
for establishment of high school, vocational
school with a campus area of 66,000 square
meters, constructed area of classroom
of 30,000 square meters, 48 classes and
over 2400 students. Land for school will
not be transferred for other purposes.
So long as it is in compliance with the
panoramic land plan, the land requisitioned
for investment of over 50 million yuan
on establishment of higher education or
public welfare cultural facilities will
only be levied taxes and be exempted from
any fees except for the amount remunerating
the farmers and the part turned over to
the state and province.
Regulated
fee
Only taxes will be levied and administratively
regulated fees will be exempted except
for the part turned over to the state
and province. Non administratively regulated
and operative service fees will be reduced
or exempted or charged 50% according to
the lowest standard in accordance with
preferential policies for foreign investors
in Qingyuan..
Tax
1) Donation on public welfare facilities
is encouraged. After it is subject to
assessment and confirmation of the relating
cultural, publicity promotion department
and examination of tax department, donators
may be granted the following preferential
tax treatment: 10% of the income tax of
tax-payer whose donation on culture, arts
is involved in relating preferential policy
will be deducted. If the donation is not
over 30% of the donator's personal income
tax, then it may be deducted in other
items.
2) With approval of tax department, technologic
research expenses incurred in the cultural
enterprises will be deducted before tax.
If the amount of technologic research
expense increases by 10% or above compared
with that in the previous year, then 50%
of the technologic research expense will
be deducted from the income tax. If enterprise
accounting system is applied in cultural
enterprises, the annual depreciation rate
of the electronic equipments will be 20%.
System of accelerated depreciation of
fixed assets is encouraged to be applied
in cultural enterprises if possible, yet
adjustment should be made in the process
of corporate income tax declaration according
to tax law.
3) Nationality treatment will be granted
to those investing on cultural establish-ments,
individually-run schools, jointly-funded
school buildings, sports ground etc. in
the process of industrial & commercial
registry, project ratification, land requisition,
tax exemption and reduction, public financial
support, acadenmic accredition, achievement
appraisal etc.. Preferential tax policies
will be implemented for schools of any
kind invested by government, social organization
or individual according to document titled
Announcement on Preferential Policies
for Education numbered Caishui[2004]#39
jointly issued by State Finance Department
and State Tax Bureau.
4) In order to support development of
newly established cultural sector, from
2004 to 2008 when the annual increase
is over 20%, 50% of local reserve will
be rewarded to enterprises by the public
financial department, If the local reserve
of business tax (value-added tax) and
corparate income tax (with deduction of
the amount that should have been levied
by tax and public financial departments
in the past few years )of the newly estabilshed
cultural enterprises exceeds 1 million
yuan, with an annual progressive increase
over 20%, then 50% of the local reserve
will be rewarded to enterprises by public
financial deparment.
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