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Special Incentives for Major Manufacturing Projects

Qualifications: Total Investment over $50 million Encouraged Projects in IT, Pharmaceutical and Precision Mechanical .

Land Use
Proper land will be provided in the Zone and the land cost will be fully subsidized by the Zone. Land use right will be legally achieved for 50 years as long as its industrial nature remains unchanged.


Investment Subsidy
After the production of the project, 1%-5% of actual fixed assets investment will be subsidized, three times in three years.


Utilities Subsidies
Utilities Subsidy In 5 years after the production of the project, manufacturing power consumption will be subsidized at 5% -10% of the actual power fee payment.

 

Corporate Income Taxes
An income taxation rate of 15% shall apply. Starting from the first year when operational profit is achieved, income taxes shall be exempted for the first two years, and be levied on a half rate of 7.5% for the third to fifth years; 10% from year 6 to year 8 if company be ratified as advanced technological enterprise.


Financial Support
The Government will reward enterprises for a certain portion of the total of paid VAT, income taxes and operational taxes reserved by the Zone for a period of five years.

 

Individual Income Taxes
Personal income taxes paid by experts and senior managers (yearly salary over 100,000 and less than 10% of the staff total) will be rewarded for 70% of the portion reserved by the Zone for a period of five years.


Incentives on Construction Fees
For major IT manufacturing projects, construction fees will be exempted in totality (152 yuan/m2 at the city level)

 

Reduced Social Security and Benefit Payment Rates
At the municipal level, social securities of pension, medical, unemployment, injuries, birth insurance paid by companies amount at the 31% of salaries while in Hi-tech Zone, a rate of 17.8% shall apply within 5 years since the establishment of this Project. The preferential rates shall not affect the standard for security and benefits entitled to Project employees.

 

Incentive Policy in EPZ
1. The imported machinery, facilities, construction materials for factories and warehousing, molds and spare parts and office equipment used by companies inside EPZ are exempted from tariff and import VAT.
2. Raw materials, spare parts, components, packaging materials and consumables for companies inside EPZ to manufacturing export products are tax bonded.
3. Water, power and gas consumed by company inside EPZ for exportation are qualified for 13% of tax refund.

 


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