Regulations on Encouraging Investment in Taiwan Industrial Park and the Hi-Tech Industrial Park of Jiangmen Municipality
CreateDate:2016.09.24

Document No. [1999]12 of Jiangmen Municipal Government
 
The following regulations are stipulated to encourage Taiwan businessmen and overseas investors to invest in hi-tech projects and productive enterprises in Taiwan Industrial Park and the Hi-tech Industrial Park.

I. Preferential Treatments in Industrial Use of Land

1.Land use right sale price: 70,000 yuan / mu on installment, 50% as initial payment and the rest to be paid off within 2 years; in case of full payment within 3 months from the date of contract signing, the price is 63,000 yuan /mu. The land area is calculated from the central line of planned roads. The maximun term of industrial use of land is 50 years.

2. Land use right sale price shall be calculated at the rate of 90% of the price specified in regulation 1 for an individual enterprise whose investment exceeds $10 million; land use right sale price shall be calculated at the rate of 80% of the price specified in regulation 1 for an investor whose investment exceeds $50 million.

3. The monthly rent of industrial land and industrial buildings shall be calculated with preferential considerations according to different areas, different environments and varied project actual situations in the light of the rent in Jiangmen urban areas.
 
II. Exemption and Reduction of Capital Construction Listing Charges

4. Zero taxation for fixed assets investment adjustment shall be effected for industrial projects  which are in conformity with the state’s industrial policy.

5. Supporting municipal construction project charges and civil defense project charges are exempted for industrial projects building.

6. Environmental assessment charges and construction project quality supervision charges are reduced by 50% for industrial projects.

III. Preferential Treatments in Water, Electricity, Communication and Other Charges

7. Charge for industrial water shall be reduced by 50% for 3 years, at the rate of charges for residents’ daily use of water (0.85 yuan /cubic meter).

8. Electric power engineering charges ( capicity increase charges) shall be paid in installment: 20% at the time of installation, 30% at the time power is supplied and the rest 50% at the time power is supplied for a full year. 0.03 yuan shall be refunded to the user for every kwh for 3 years in industrial power supply.

9. The charges of telephone installation and exterior line construction charges shall be collected at the rate of 70% of the current rate for city’s urban areas and the municipal telephone charge is the same as the municipal standard. Wire TV installation fee shall be collected at half the rate.

10. Temporary workers deployment fee shall be exempted for 3 years and employee temporary residence fee shall be collected at half the rate.

11. Dam maintenance and management fee shall be collected at half the current rate for 3 years.

 IV. Preferential Taxation
Taiwan businessmen invested enterprises in the industrial park shall be given the following preferential treatments in taxation:

12. Enterprises whose operation exceeds 10 years shall be given the following preferential treatments in enterprise income tax: exemption of tax in the first 2 years beginning from the first profiting year and 50% tax reduction in the next 3 years.

13. Productive enterprises whose export of products exceeds 70% of their output value of the curr ent year shall, after the expiration of tax exemption and reduction, be exemped half of the tax specified by tax law.

14. Technically advanced enterprises confirmed by the provincial authority shall, after the expiration of tax exemption and reduction, be exemped half of the tax specified by tax law for another 3 years.

15. Investors who invest their profit in expansion of their enterprises or in other projects in this industrial park with a minimum operation period of 5 years shall, after the examination by the taxation authority and with the approval of the financial authority, be refunded 40% of the municipal share of their reinvestment profit income tax.

16. Foreign investors who remit their enterprise-derived after-tax profit abroad shall be exemped income tax.
Hi-tech enterprises in the industrial park or hi-tech products produced in the industrial park shall be given the following preferential treatments in taxation:

17. Hi-tech products produced by hi-tech enterprises confirmed by the provincial authority or above shall be exempted the local share of enterprise income tax for 2 years ( including the period after confirmation and before entry into the industrial park); after the expiration of the above preference period, 15% of the specified income tax shall be exempted. Within 3 years, all the local share of value-added tax shall be collected first and then refunded to enterprises.

18. The local share of new value-added tax on new products listed in the national plan or patented products listed as the first of its kinds in the provincial plan shall be refunded by the finance to enterprises in full in a period of 3 years beginning from the date of sale and new products or newly patented products at the provincial level shall be refunded by the finance to enterprises in full in 2 years.

 V. Other Regulations

19. The same preferential treatments in the industrial park shall be given to investors from Hong Kong, Macao, other countries and areas.

20. The municipal financial share of enterprise income tax on domestic capital enterprises in the industrial park shall first be levied and then refunded from the profiting year: fully refunded in the first and the second year and 50% refunded in the third, fourth and fifth year.

21. All the exempted or reduced taxes, charges and prices, unless otherwise stated, shall be calculated from the date an enterprise comes into operation. In case an enterprise meets the same tax preference in more than one condition, it is given only one preferential treatment of all.

22. These regulations are valid only in the 41st and 42nd Areas of Taiwan Industrail Park in Jiangmen Municipal Hi-tech Industrial Development Zone and Jiangmen Hi-tech Industrial Park. These regulation shall be subjected to adjustment in case of major adjustments in the national taxation policies.
23. These regulations are interpreted by the leading group of Taiwan Industrial Development Park in Jiangmen Municipal Hi-tech Industrial Development Zone and the Hi-tech Industrial Park.
 
 
All Informations comes from Jiangmen Municipal Government
Translator:ZhouYubo,JiangMen Translators Association

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