The local government has designed highly favorable legal framework consistent with all relevant national policies to facilitate investment in Zhongjie International Economic Park (ZIEP) and create a successful and prosperous operating business environment.
Land
As it is a targeted national development area, there is a vast area of non-agricultural use land available for exploitation, designated in the lowest possible price level compared with national level (RMB96000/mu, US$ 21/m2). Local authorities would further support innovative investment projects according to type, scale, and technical scope of the installations, and in certain cases, may waiver land fees altogether for purchasing, renting or shareholding.
Land utilization (highest prices recorded in 2008)
Price for Industrial Utilization: RMB 25,000-30,000/mu (375,000-450,000/acre), free of charge for 2 years.
Policies are favorable to the developers of large areas. The price is negotiable and even without charge.
LAND
1. The enterprise could get the land-use right by purchasing, renting and shareholding.
2. Price of the land-use right: 30,000Yuan/Mu
3. Price of the uncultivated land:
- (1). for investment of 10 million Yuan RMB: 30,000Yuan/Mu
- (2). for investment of 10 million -50 million Yuan: 25,000Yuan/Mu
- (3). for investment of 50 million -100 million Yuan: 20,000Yuan/Mu
- (4). for investment over 100 million Yuan, the price for the land-use right will be under 15,000Yuan/Mu.
4. For new industrial project (subject to the planning of land-using stipulated in the feasibility report), the enterprise could get refund from the development zone of the profit produced from land and reserved by local government, after paying the total amount of the land-use right.
5. The development zone supplies the land-use right by means of transferring if the project complies with the CATALOGUE OF LAND TRANSFERRING stipulated by the Land Resource Ministry.
6. The enterprise has rights to transfer, lease, mortgage and inherit the land within the period of validity of the land contract. Once upon the expiration of the contract, the user could apply for extension.
7. After paying the total amount of the land-use right, the buyer is exempt from the land using fees in the first 2 years and only pays 50% of it from the 3rd year to 5th year.
8. We offer more favorable policy on land for the encouraged projects.
Taxation
The local government provides a complete package of tax incentives and subsidies on a range of investment and industrial projects. ZIEP´s unrivaled tax environment aims to maximize the competitive advantage of investment, to keep companies efficient and provide sound financial support to business entities.
In order to stimulate wider development opportunities, local authorities have offered investors significant tax advantages for capital invested in ZIEP.
Companies operating in ZIEP are exempt from local income tax during the first two years operations, beyond which they benefit from additional tax measures with a minimum of 50% rebate on income tax.
Those export-oriented enterprises, advanced technology companies and agricultural businesses benefit from further tax advantages.
TAX
1. For the newly established productive enterprise whose investment on fixed assets is over 100 million Yuan RMB, a gratis fund will be granted since the year it is put into operation. The amount of the fund equals to the proportion of VAT reserved by the county. From the 2nd year to 3rd year, a gratis fund which equals to 50% of VAT reserved by the county will be granted to the enterprise. For enterprise whose investment on fixed assets is over 50 million Yuan RMB, a gratis fund will be granted since the year it is put into operation. The sum of the fund equals to the proportion of VAT reserved by the county. In the 2nd year and 3rd year, 25% of VAT reserved by the county will be rewarded to the enterprise as gratis fund. For the enterprise whose investment on fixed assets is over 10 million Yuan RMB, a gratis fund of 75% VAT reserved by the county will be granted to the enterprise in the first year after it is put into operation and from 2nd to 3rd year, 25% of VAT reserved by the county will be rewarded as gratis fund to the enterprise.
2. For newly established productive enterprise, a gratis fund will be granted during the first 5 years since it is put in to operation. The amount of fund equals to the proportion of income tax reserved by the county. For the productive enterprise who is dealing with infrastructure project ( such as water, electricity, steam and gas )，the gratis fund will be granted during the first 5 years since its profitable year.
3. For the newly established enterprise who is engaged in commerce, storage, service and so on and meanwhile whose investment is over 10 million Yuan RMB, 75% of sales tax as well as 100% of income tax reserved by the county will be rewarded as gratis fund during the first 5 years since it is put into operation.
4. For the wholly-owned foreign company or joint-venture whose operation period is over 10 years, they can enjoy not only the preferential tax policy offered by the State in the first 5 years but also they will be rewarded 100% of income tax reserved by the local government from 6th to 8th year.
5. For the hi-tech enterprise, more favorable policy will be offered. In addition, it could get a gratis fund during the first 5 years since its profitable year. The amount equals to 100% of income tax reserved by the county.