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Preferential Policies

Article 1.
In order to improve the investment environment in Siping, to encourage foreign capital, technology, equipment and administrative experience, to expand export potential and speed up the economic development of our city, we have instituted certain preferential policies.

Article 2.
These stipulations apply to enterprises outside Siping who invest in the Siping region (including foreign-invested enterprises and Hong Kong, Macao & Taiwan -invested enterprises ).

Article 3.
By law, the decision-making power of the outside investment enterprise in Siping and the lawful rights of investors are guaranteed.
1. Within the scope of the approved contract, the investment enterprise can manage itself. The wage scale, rewards and allowances can be decided by the enterprise.
2. The investment enterprise has decision-making power over its employees. It can employ, recruit and dismiss workers and staff without impediment.
3. The civil rights of the investment enterprise are under the protection of law. No organization or individual may infringe.
4. The entire investment of the investors, the assets purchased, the industrial property rights, the investment profits and other lawful rights are under the protection of law. Further more these can be transferred and inherited by law.

Article 4.
After a foreign-invested enterprise is approved by the relevant department, its registration formalities can be simplified and made effective immediately. Many markets can be exempted from industrial & commercial administration charges for 3 years. Private enterprises can be exempted from industrial & commercial administration charges for 3-5 years.

Article 5.
When using land, outside investment enterprises enjoy the following preferential policies:
1. In accordance with the amount and direction of the investment, the transfer expenses in Siping are preferential to the investors.
2. Outside investors have the option of paying their land transfer fees in installments or, with permission of the local government and relevant units, the fees can also be used as shares.
3. There are preferential policies for those making use of city or town land, the bare mountains or waste lands.
4. Large scale projects and projects playing an active role in the development of the city's economy are given the highest preference.

Article 6.
New outside investment enterprises may be able to have basic fees, such as those for facitlities, administration and planning, either exempted, reduced or spread out in installments over several years.

Article 7.
In response to the needs of outside investors, the financial department will soon be opening an individual and enterprise account to facilitate cash flow and credit.

Article 8.
Outside investment enterprises enjoy the following preferential tax policies :
1. Any enterprise that hires more than sixty percent of the unemployed of our city will be exempt from income tax for 3 years. Any enterprise recycling waste materials, such as waste water, waste gas or waste dregs in it's production facility will be exempt from income tax for 5 years. Any enterprise engaged in the service sector will be exempt from income tax for 1 year. Enterprises engaged in transportation, post & communication, consulting services or information and technical services are exempt from income tax for 2 years. Any income received from services benefitting agricultural production or from technical services to scientific units or colleges is exempt from income tax.
2. All foreign-invested manufacturing enterprises which have been in operation for over 10 years will be exempt from local income tax for the 6 years following their first profit-making year, and will enjoy a 50% reduction of the local income tax for 4 years starting from the 7th year. At the expiration of the local income tax exemption and reduction period, if a foreign-invested enterprise exports goods having a value of more than 50% of its total output value for a given year, it will be exempt from local income tax.
3. When the tax exemption and reduction preferential policies stipulated by the state or the province have expired, local taxes may still be postponed with the approval of the taxation authority.
4. If a foreign-invested enterprise has difficulty paying its taxes during the starting-up period, payment may be deferred in certain situations.
5. If an outside investment enterprise reinvests any part of its share of profits earned, the income tax paid on that profit and more than fifty percent of the increment value duties already paid will be returned.

Article 9.
Outside investment enterprises will be supplied with the forms with which to invoice themselves.

Article 10.
Outside investors and their relatives can change their residency from countryside to city if they wish. Their childrens' nursery and school entry and employment can be arranged first. Foreign staffers and their relatives enjoy the same status as the citizens of Siping City, after certification by the public security organ.

Article 11.
If outside investors invest more than 20 million yuan in agriculture and industry and more than 10 million yuan in the service sector, their projects are considered to be key ones and enjoy preferential policies. Water, electricity, material, fuel, transport, etc., are arranged and charged at the lowest standard price available in Siping City.

Article 12.
Every government department at every level of government has been instructed to facilitate investment. New enterprises may not be examined or charged without reason.

Article 13.
Fast and convenient service will be provided for outside investment enterprises, and many service charges will be exempted or reduced.

Article 14.
Groups or individuals who introduce foreign or domestic capital (which can be used for over 3 years.) and grant it without consideration will enjoy the following rewards:
1. The amount of the reward for introducing outside investment will be 0.3% of the amount of the actual funds.
2. If the foreign or domestic capital introduced is used to reform an existing enterprise, the reward will be 0.55 of the amount of the actual funds.
3. Those who introduce money or equipment without consideration will be awarded 2% of the value of the contribution.
4. The people's government of Siping City will pay a one-time reward or provide a prize, merit, promotion, etc., to the bureau grade cadres who contribute to the absorption of outside capital and the introduction of projects.
Cadres under section grade (including retired older cadres) and the masses will be awarded according to the above method.
5. Anyone introducing 5 million yuan or more into the local economy can change his residence card from rural to urban upon approval by the relevant organ. His childrens' school entry, nursery and employment can be arranged first.

Article 15.
Rewards are paid out by the unit benefited on the principle of "Who benefits, who pays".
The financial department pays the reward in cases of independent investment.
When foreign exchange is absorbed, the reward is paid by the benefited unit in the form of RMB, which is converted according to that day's foreign currency exchange rate.

Article 16.
Any other demands put forward by outside investment enterprises can be settled individually.

Article 17.
Outside investment enterprises which invest in certain economic areas, such as new, high technology industrial areas, may enjoy other preferential policies not enumerated here.

Article 18.
These policies take precedence over past policies of Siping City.

Article 19.
The Siping Leader Group Office of Absorption of Businessmen to Invest is responsible for the explanation of the above stipulations.

Article 20.
These stipulations are currently in force.