In order to
draw foreign investment more actively and efficiently, so as to quicken the steps of
opening to the outside world and further develop the opening economy of Sanming city, we
hereby stipulate the following favorite stipulations in accordance with our local
situation that all those foreign business who come to invest in Sanming could, besides the
policies issued by the state and provincial government, share:
Item One: The reduction of income tax and the return of the
received income tax
Item Two: The use of Land
- Sub-Item One: All those foreign business who come to invest in business
production, could share a 24% of imposing the enterprises income tax by the state tax law.
And those who run their business for over 10 years of production could be favored of being
exempted from the business income tax for the first two years after they gain profits. And
from the third to the fifth year, the income tax levied could be reduced by half. After
the tax is levied, it could still be fully returned from the financial department through
the local finances by presenting the paying voucher. From the sixth to the tenth year,
after the tax is levied, it could still be returned by 50% according to the local finances
through local financial department after the annual final accounting, among which from the
seventh year, the levied tax calculated in chain counting, will be fully returned of its
incremental part to the foreign business by the local financial department All those who
run their business by shifting or transforming old enterprises could also share our
favorite policies of sub-item1of this item.
- Sub-item Two: All those foreign business who come to run their
business for over 10 years within our high tech development zone and are confirmed of
running on high tech productive items could follow sub-item 1 and the favoring time could
be lasted till they are expired of their production.
- Sub-item Three: All those foreign investments who run their
business in production could be exempted 5 years of local income tax among which those
advanced technical business and exporting business is exempted from local income tax.
- Sub-item Four: Those foreign business who invest in docks,
transportation, energy and other fundamental facilities will only pay the income tax by
15% of the income tax rate among which those who run dock or power for over 15 years could
be exempted from income tax from the first to the fifth years, and from the sixth to the
tenth year the income tax could be reduced by half. From the eleventh year, the income tax
levied will be 15% of the tax rate. Those who invest for over 10 million Us dollars to 30
million U.S. dollars or those who invest for less than 10 million U.S.dollars in
agriculture, forestry or other supporting production business will be levied an income tax
of 24%, but it could be fully returned to the business by financial department according
to the actual annual income tax rate of 80%by the local finance.
- Sub-item Five: After being approved, foreign business could
invest in the provincial level of tourist economy development zone or holiday zone to
build villas holiday villages and other necessary services no matter productive or non
productive, they could comparatively follow Item One, sub-item one to share the favorite
Item Three: The Reduction of Accessory Fees
- Sub-item One: For all those foreign business that come to invest
in our city, we levy a land-using fee as the follows:
1.For those foreign business who explore the land by themselves,
we only levy a land compensation fee and administration fee .The administration fee is3%.
The land using fee is free before they put into production and this lasts two years after
they put into production From the third year on, we levy a land using fee of 0.5 yuan per
square meter while we reduce it by half for three years. From the sixth year on we levy
the land using fee of 0.5yuan per square meter. Those foreign business who invest for over
1.2million U.S.dollars could be exempted from the land using fee for five years after they
put into production.
2. If we levy the exploring fee together with land using few will
receive 1? yuan per square meter annually.
- Sub-item Two: All those foreign business who invest in exporting or advanced
technical enterprises, could be offered the rights of using land through administrative
allocation. The price of land could be paid according to the actual compensation fee when
using the land, mean while, they could follow Item two, sub-item one,1.If the groups of
countryside collective economy would share their land to open co-operations with foreign
business, the foreign business could apply for free use of the land.
- Sub-item Three: Those foreign business who invest through shifting or
transferring from other enterprises, could use lands through administration allocation,
the land using fee will be favored as the follows:
1.Those who obtain the rights of using land by transferring lands, the
transferring fee could be fixed according to the fixed standard price of land by 10?5% and
get a reduced land using fee.
2. Those who obtain the rights of using land through renting or hiring, will
pay a 15% land use fee of the fixed standard price annually.
3.Those who obtain the rights of using land through shares of land price, the
share price is 10?5% of the fixed standard price, and the shares are taken as evidence for
transferring state share or state owned legal share.
- Sub-item Four: Those foreign business who invest in education, culture,
science and technology, health, social welfare, and non-profitable items could be favored
of a privilege of using lands and could be exempted from paying land using fee.
- Sub-item Five: Those foreign business who invest in high-tech development
zone to open exporting or advanced technical enterprises and who invest over 3 million
U.S.dollars could be favored in levying land use fee.
- Sub-item Six: Those foreign business who make use of the present factory
building or land to run business will be favored even more.
All those foreign business who come invest productive enterprises could be
exempted from civil education fee, commercial community fee, by-products food prices
adjusting fee, city fundamental facilities fee, water supply enforcement fee and power
supply enforcement fee, if the power is supplied by local power net.
Item Four: The Chinese co-operator of foreign business investment could share
a 30% 0f allowance fee for the transportation from the enterprises to the port, but the
total allowance should not be over 50% of the transportation principally.
Item Five: The foreigners in the foreign business could favorably
obtain a permanent registered residence for their relatives in cities or counties they
Item Six: We offer a successive good services of inquiring,
establishing items, feasibility study, approving contracts and issuing certificates,
business licenses, and legal arbitration services etc.
Item Seven: Those foreign business from Hongkong, Macau, and
Taiwan could follow this stipulation.
Item Eight: The right of interpreting this stipulation belongs to
the Sanming municipal government. Those that are against this stipulation must follow this
stipulation. This stipulation starts from Jan. first 1997.