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.
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| Investment Subsidy
After the production of the project, 1%-5% of actual
fixed assets investment will be subsidized, three times
in three years.
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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.
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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.
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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.
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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.
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Incentives on Construction Fees
For major IT manufacturing projects, construction fees
will be exempted in totality (152 yuan/m2 at the city
level)
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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.
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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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