The policy of “equality
and mutual benefit” is adopted in
foreign economical exchanges in Yunfu,
and the preferential measures for attracting
foreign investment are formulated in accordance
with this policy as follows:
--- With regard to the land
used by foreign investment enterprises,
the urban construction charge, infrastructure
charge and the charge for granting the
right to the use of the land may be levied
at 30% of the local standard for infrastructure
or public projects such as energy, highway,
port & docks construction, and so
on, 50% for productive and tourist projects.
In regard to the projects for development
that use the state-own barren hills or
hillsides, the value-added fee may be
levied at 30-40% of the local standard
when there is a value-added for granting
the right to the use of land and the land
use fee may be exempted from.
--- The terms for granting
the right to the use of the land differ
from different trades of production or
projects for operation with the maximum
of 70 years. During the term of ratification,
re-granting with compensation or mortgage
of such right is allowed upon approval.
--- The income tax of productive
enterprises with foreign investment set
up in Yunfu may be reduced to 24%.
--- Productive enterprises
with foreign investment scheduled to operate
for a period of 10 years or more may,
upon approval, be exempted from income
tax in the first 2 profit- making years
and allowed a 50% reduction in the third
to fifth years and, be exempted from local
income and city construction taxes.
--- When the period of term
for tax reduction or exemption expires,
the enterprises income tax of the foreign
investment enterprises, specialized in
agriculture, forestry and livestock, may
be levied with a reduction of 15%--30%
of the total amount in the next 10 years
upon application of the enterprises and
approval by the taxation department-in-charge
under the State Council.
--- When the period of term
for tax reduction or exemption expires
according to the tax law, foreign investment
enterprises with an output value of export
products of the current year reaching
70% or above of the total output value
for that year may be allowed a 50% reduction
of the income tax according to tax law.
For those enterprises with a tax rate
less than 10% after the reduction, the
income tax shall be levied at a rate of
10%.
---When the period of term
for tax reduction or exemption expires
according to the tax law and still remaining
enterprises of advanced technology, foreign
investment enterprises of advanced technology
may have 50% of the income tax for enterprises
reduced for another 3 years. For those
enterprises of such kind with a tax rate
less than 10% after the reduction, the
income tax shall be levied at a rate of
10%.
--- Profit made by foreign
investors from foreign investment enterprises
may be exempted of income tax. The dividend,
bonus and the legal income of the enterprise
can be remitted outside China freely.
--- Projects included in
the encouraged items listed in the Catalogue
for the Guidance of Foreign Investment
Industries as well as all the permitted
items with all products exported can have
their imports and equipment exempted from
customs duties and import stage value-added
tax, on the condition that the imports
are within the investment volume, for
the projects own use and not included
in the Catalogue for Imports not Exempted
from Tax in Foreign Funded Projects.
--- Foreign investment enterprises
specialize in breeding, planting, livestock
& aquatics raising, when selling the
products of their own production, are
exempted from value-added tax.
--- The export products
and processing charges of the processing
and assembling enterprises with foreign
investment are exempted from value-added
and consumption taxes
--- All the administration
and institution charges paid by the foreign
investment enterprises shall be levied
at the lowest level according to the regulations
of State or province, of which the share
left for the Municipality will be returned
to the enterprises in proportion in the
first 5 production years, 100% for the
first 3 years, and 50% for the next 2
years.
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