6.4.3 WNHZ Special Preferential Policies
Difficult climb to Hua Mountain
On the Basis of General Preferential Policies
>>> FIEs will enjoy import and export tariff reductions;
>>> Companies agreeing to invest/operate for >10 years shall pay 15% of the tax rate;
>>> Fresh investing companies agreeing to invest/operate >10 years are also exempt from company income tax for the 1st 2 years and have to pay
50% of said tax for the following 3 years;
>>> FIEs agreeing to invest/operate at least 5 years will enjoy the policy for refunded revenues;
>>> The preferential policies shall apply to domestic, Chinese procurement of material the FIE has contractually to bring in as foreign investment in kind.
This means the FIE procures equipment, he would have to bring from his home State inChina. Then any VAT paid with procurement inChinashall
be reimbursed to him.
>>> The General Preferential Policies , as a.m.)shall apply for services of technical support and include the technology transfer
>>> Other preferential policies may be granted to software and integrated circuit including tax incentives for respective freshly investing enterprises are
>>> Preferences for Chinese domestic procurement are available in line with indent 4 above.
>>> Preferential Policies for domestic enterprises are available as follows:
On the basis of specific Preferential Policies in the City-based Development Zones
>>> Major projects enjoy the "One Case One Meeting"-Policy;
>>> Land use depends on the scale of the enterprise;
>>> FIEs will enjoy exemption from the company income tax for two years from the 1st profit-making year and pay 50% of said tax for the following three years
>>> Relax restrictions for enterprises do not limit the business scope, the ratio of investment on each side etc.