Land Cost

1.Price of land in industrial

  development zones where access

  to water, power, transportation,

  telecommunication is available

  and ground is leveled

2. Rent of workshops (to be

  negotiated)

145-180 yuan/ m2

6-9 yuan / m2 per month

Operational Costs

1.Salaries and Wages

2.Water for industrial use

3. power for industrial use

4. freight from Jiangmen to Hong Kong:

1) Land (40-foot container)

2) water (40-foot container)

5. Environmental protection and

  sewage discharge fees 

Salaries and wagers for various

levels of employees are

correspondingly slightly lower

than those in other cities in the

Pearl River Delta;

Within the first three years,

1.20 yuan/m3;

after the first three years,

1.35yuan/m3;

For large industrial users:

0.9968yuan/kilowatt.hour at peak time;

0.7486 yuan/kilowatt.Hour at usual time;

0.3298 yuan/kilowatt.Hour at valley time.

For ordinary industrial users:

1.1706 yuan/kilowatt.hour at peak time;

0.7486 yuan/kilowatt.hour at usual time;

0.3848 yuan/kilowatt.hour at valley time.

HKD 5,300

HKD 1,600

Enterprises that are up to pollution

standards will be exempt.

Taxes

1.  Production enterprises with a licensed operation period of over 10 years will be exempt from corporate income taxfor the first two profit-making years and for the next three years, the tax will be collected at half rate.

2.  Corporate income tax rate and local income tax rate for foreign-funded production enterprises

3.  Value-added tax rate

4.  Individual income tax: the portion in excess of 1600 yuan/month for domestic employees and 4000yuan/month for employees from overseas will be taxed.  

24-3%

17%-13%

5-45%

Social

security fees

(the part to

be paid by

enterprise)

1. Medical insurance

2. Pension insurance

3. Unemployment insurance

4. Job injury insurance

5. Maternity insurance        

Equal to 6.5% of employees' wages;

Equal to 20% of employees' wages;

Equal to 2% of employees' wages

Equal to 1% of employees' wages

1.5 yuan /employee per month