Preferential Measures To Encourage The Further Development Of Foreign

And Private Enterprises Of Taishan City

  In order to attract foreign and private investment to our city and hasten the pace of economic development of our city,we draft the following preferential measures according to state regulations and policies and the situation of our city .

1 . For the newly founded ( excluding local moving, ending the old business and starting a new one, similarly hereinafter)foreign-invested enterprises and private enterprises paying value-added tax of no less than CNY50,000 annually , 50% of the city retaining amount of value-added tax within 5 tax years from the date of sale shall be used for enterprise development fund by city finance to support their development.

2. For the newly founded foreign-invested enterprises and private enterprises that are producing industrial and agricultural products and have an annual turnover no less than CNY 2,000,000, in addition to enjoying the preferential policies stipulated by the state, 100% of the city retaining amount of income tax levied within 5 tax years from the date of paying this tax shall be used for enterprise development fund by city finance to support their development.

3. For the newly founded foreign-invested enterprises and private enterprises that pay no less than CNY50,000 in business tax annually (excluding traffic and power projects) , within 5 tax years from the date of paying this tax ,100% of the city retaining amount of business tax levied in the first two years and 50% of the city retaining amount of business tax levied in the following 3 years shall be used for enterprise development fund by city finance to support their development.

4. For the foreign-invested enterprises, private enterprises and individuals industrial and commercial business (with the involvement of state-owned, collectives, joint share and other economic types) already registered and conducting business in our city before the
implementation of this provision ,within 5 tax years beginning from 1999,if one of the value-added tax,business tax and income tax reported by the enterprises themselves to be paid each year reaches CNY50,000~500,000 per year(excluding increase stated by policy reguation and export refund proportion, the same with the following)with annual increase of more than 20%,or reaches CNY500,000~1,000,000 per year with annual increase of more than 10%,or, reaches over CNY1,000,000 per year with annual increase of more than 5%,100% of the city retaining part of tax increase shall be used for enterprise development fund by city finance to support their development.

5. Products processed by processing enterprises with duty-free imported materials provided by foreign business people in the trade form of "processing against customer's material" and their processing fee can be exempted from value-added tax and consumption tax.

6. Land invested by foreign-invested and private enterprises for productive industrial projects can be exempted from charges levied by our city.

7. Construction report fee for newly-constructed factory buildings of foreign-invested and private enterprises shall be reduced by 50% from original.

8. Tap water construction fee of newly founded produtive projects operated by foreign-invested and private enterprises shall be charged by 50% reduction of the set standard; self construction of water conduits can be exempted from such fees. Power supply adhibition fee
can be paid by installment.

9. Large projects in the city that amount over CNY50,000,000 of investment by foreign-invested enterprises, private enterprises and large and medium-scale domestic enterprises can be reported to the municipal government to be treated as a special case and enjoy special preferences in the use of construction land, fees and recruitment. Specific cases are to be handled specifically.

10. The municipal government will keep a certain area of land in the city for industrial, commercial,tourist construction according to city construction planning and industry layout. And entrust foreign business people, domestic units or personnel concerned to invite business
investment on the basis of basic land price. The part over the basic
land price shall belong to the entrustee.

11. Enterprises in the foreign and private investment demonstration districts approved by the municipal government are given more preferential policies than provisions mentioned above in fees for construction land and construction report fee for newly-constructed factory buildings. The service shall take "one window dealing with charge and one continuous line with all issues from the beginning to the end". All functional departments shall give energetic support to the development of enterprises, render high-quality services for them and create a relaxed environment for the production and business activities within the districts.