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Industrial Supporting Policies and Measures

  In order to promote investment, Guiyang CPC Committee and government decided to implement an overall opening-up promotion strategy in the whole city and carry out investment environment innovation. The municipality will regard investment promotion as the lifeline in economic work and endeavor to establish close relationship with investors, making them feel reassured and gain profits. The government plans to attract investment by investment, by resources and by stock assets. Based on the development of seven advantageous industries, namely, aluminum processing, phosphorous processing, mechanic and electrical industry, new materials, contemporary traditional Chinese medicine, green food and eco-tourism, the investment promotion will change the focus to service sectors including exhibition, contemporary logistics, and finance in 2009. Private, social, foreign and other kinds of capital are encouraged to participate into the above mentioned fields. The government will try to stimulate the initiative of non-official capital investment and make breakthroughs in investment promotion so as to further push on the local investment.

  In investment promotion, the government persists in Investment Environmental Innovation, which means to understand and make good use of the policies granted by the central and provincial government. The government will make sure that every project is under policy protection and every investment project should be discussed separately. In order to build Guiyang into an ideal place for investment where investors can enjoy low cost, high profit and superior service, the government adopts some good measures---holding regular meetings to coordinate important projects, setting time limit for completing proceedings, officials’ bearing responsibilities for power abuse, making service commitment, leaders’ bearing the first responsibility, transacting the proceedings without charge, and etc..

  1. As for the domestic-invested and foreign-invested enterprise set up in western China, whose business scope is within the encouraged categories, its corporate income tax will be collected at 15% reduction from 2001 to 2010.

  2. As for enterprise certified by relevant department as new & high tech involved and located in the high- tech zones approved by State Council, its corporate income tax will be collected at the reduced rate of 15%.

  3. As for foreign-invested export enterprise, upon the due term of reduced income tax rate according to the tax law, its corporate tax can be collected at half of the legal rate (but not less than 10%) if the exported value accounts for 70% of the total product value in the current year.

  4. As for the manufacturing foreign-invested enterprise with operation term of over 10 years, the corporate income tax will be exempted from the first two years from the profit-gaining year, and the corporate income tax will be collected at half reduction for the ensuing three years. If the actual operation term was less than 10 years, the enterprise should repay the balance arising from the exemption and deduction amount.

  5. As for the enterprise that successfully makes exportation for the first time, 3 fen per USD income will be rewarded upon the actual export value (according to customs data). As for the enterprise whose actual export value goes up over the previous year, on the basis of added export value, 2 fen per USD income will be rewarded if the added value is less than 1 million USD (including 1 million USD). 3 fen per USD income will be rewarded if the added value exceeds 1 million USD. To the enterprise that expands new foreign market successfully, 2 fen per USD income will be rewarded upon its export value in the new market. For the exportation of the local-made mechanical and electrical products as well as high & new tech products, 5 fen per USD will be rewarded upon the export value. 2 fen per USD will be rewarded if mechanical and electrical products as well as high & new tech products made in other provinces are exported.

  6. In the light of technological content, investment scale, economic benefit and market prospects, in case of land acquisition for factory construction, land transfer fee and farmland reclamation fee will be exempted and other related land fee will be collected at the lowest rate regulated by the law.

  7. Guiyang CPC Committee and municipal government abide by the implementation opinions of “Some Opinions on Encouraging and Guiding Development of Non-Public Economy including Private Enterprises” stipulated by the State Council.

  Supporting policies for investment are as follows:

  1. Aluminum processing, phosphorus chemical industry, new materials industry

  As for investment in aluminum processing, phosphorus industry and new materials industry, land fees will be collected at the lowest rate regulated by the law. Or if the enterprise can afford the land fee at one time, installments are applicable. The down payment may account for 25% and the balance may be paid up within 3 years. If installments are still unaffordable, the land may be leased in the beginning and purchased later. The same amount of lease fee may write off the corresponding land transfer fee.

  2. High-tech industry

  For new software manufacturing enterprises, the corporate income tax will be exempted for the first two years from the profit-gaining year and the corporate income tax will be collected at the half rate for the ensuing three years. For those key software manufacturer involved in China’s planning and strategy, in case that it does not enjoy exemption in the current year, the producer may pay the corporate tax at 10% reduction. For the software or IC companies established in Guizhou, from June, 2006 to the end of 2010, if the self-developed and manufactured software or IC products are sold by the common value-added tax-payers, the value-added tax may be collected at the formulated rate of 17%, and the part that exceeded 3% in the actual tax burden may enjoy the simultaneous levy and refund policy.

  3. Contemporary Chinese traditional medicine industry

  ● For the pharmaceutical enterprise established in Guiyang Pharmaceutical Industry Zone, in case of construction land used for GMP renovation, the local government may provide 40 years’ land use right with low or without charges. In addition, the local government will ensure the installation of public facilities including water, electricity, traffic, communication and television, etc..

  ● For the pharmaceutical enterprise established Guiyang Pharmaceutical Industry Zone, all the expenses levied by the local government are to be exempted according to regulation of localized management.

  4. Service industry

  For enterprise engaged in service industry, the expense for development of new technology, new products and new techniques may be charged at 50% of the actual deduction if the expense is not counted as intangible asset in the current profit and loss; if the expense is counted as intangible asset, it can be amortized at a rate of 150% of the intangible asset cost.

  For enterprises engaged in manufacturing service as supporting measures in state and provincial development zone and municipal service cluster district, it may enjoy relevant favorable policies in the development zone. Exporting enterprises may enjoy the refund or exempt policy on export goods according to state rules.

  Enterprises engaged in research, design, creative innovation, service outsourcing, digital development, movie making, and professional service for energy conservation and emission reduction may enjoy relevant favorable policies after being certified as high-tech enterprises.

  For expense for equipment purchase and operation for environmental protection, energy and water conservation and safe production, 10% of the expense investment may be deducted from the tax amount in the current year; if the expense does not reach the tax credit requirement, the enterprise may carry over the tax credit within the following 5 taxing years.

  For enterprises (except advertisement, real estate intermediary, pawning, sauna bath, massage and oxygen bar) which employ personnel taking the Reemployment Certificate and sign labor contract for over 1 year and pay social security fee for them, the payment may be subsidized within a relevant time limit. Business tax, city maintenance and construction fee, tax surcharge on education and income tax may be deducted at a rate according to the actual number of employee.  The standard of deduction is 4000 Yuan per capita per year.

  As for the projects involved in aluminum industry, phosphorus chemical industry, mechanical and electrical industry, new materials industry, Chinese traditional medicine industry, green food and SOE restructure in different areas of Guiyang, enterprise can enjoy the above policies as well as the relevant preferential policies granted by the local government will be applicable.

  For other related policies, please visit website of Investment in Guiyang of China.www.gyinvest.gov.cn.


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