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Policy of investment in Yumeng Industrial Zone

2014-09-12    


Article 1 In order to improve the development of Yunmeng Industrial Zone and provide a better environment for all investors, the preferential policy is formulated specifically in the spirit of the State Council, Hubei Province, Xiaogan City and the actual condition of Yunmeng to help open up and solicit investment.


Article 2 In addition to the preferential policies formulated by the State Council and governments of Hubei Province and Xiaogan City, all foreign, Hong Kong, Macao and Taiwan investors (Hereinafter referred to as “Foreign Investors”) who invest in Yunmeng Industrial Zone shall be entitled to the preferential policies formulated by Yunmeng. 


Article 3 Enterprises with internal connection are entitled to relevant preferential policies compared with foreign-invested enterprises. 


Article 4 Foreign merchants are entitled to the following policies if they invest in land acquisition in Yunmeng Industrial Zone: 

(Ⅰ) The foreign-invested enterprises that comply with the national industrial policy and planning of Yunmeng Industrial Zone could have the priority to select places for building factories in the Industrial Zone and legally obtain the land use rights.

 

(Ⅱ) As for the newly-constructed land, except for the special requirements imposed by Employer, foreign-invested enterprises obtain the land use rights by means of transfer.

(Ⅲ) As for enterprises whose disposable investment for fixed assets is above ten million yuan (including ten million yuan) and below thirty million yuan, the standard for land acquisition cost is 33500 yuan/mu; as for enterprises whose disposable investment for fixed assets is above thirty million yuan (including thirty million) and below fifty million, the standard for land acquisition cost is 25000 yuan/mu; as for enterprises whose disposable investment for fixed assets is above fifty million (including fifty million yuan), the construction land for production plant is used by voluntary assignment, and the standard for land acquisition cost of other construction land is 20 000yuan/mu. 


(Ⅳ) The land service life for enterprises in the zone is 50 years; after the expiry, if the foreign-invested enterprises require to continue using the land, a separate agreement should be made. 


(Ⅴ) The fixed investment of foreign-invested enterprises is verified by assets appraisal department with qualification.

 

Article 5: Foreign-funded enterprises which are established in Yunmeng Industrial Zone (including new items of original enterprises within the Zone scope) must legally pay taxes, calculate the land acquisition cost by rate, and they are entitled to the following preferential policies as well as the national preferential tax policies: 

(Ⅰ) County government implements award policy based on the taxation contribution on foreign-invested enterprises in the zone; based on the retention part of local finance after taxation for the year, it shall provide award by the ratio of 60%, 50% and 40% in the first three years. 


(Ⅱ) Initiating export-oriented enterprises in Yunmeng Industrial Zone could meet the indicator of tax reimbursement for export and realize the tax reimbursement for the year.

 

Article 6 The foreign-invested enterprises in the zone are entitled to the following charging preferential policies: 


(Ⅰ) If formalities of initiating, approval and certificate issuing and registration of enterprise projects are prepared in the county, these formalities are only charged with nominal fees.

 

(Ⅱ) During the construction period of project, the administrative charge is based on 50% of the minimum standard, and service charge is only the nominal fee.

 

(Ⅲ) All kinds of raised funds collected by relevant authorities in the county are exempted.

 

(Ⅳ) When enterprises in the Zone need to pay the above charges, they shall be served by foreign investment and service center in Yunmeng County.

 

Article 7 If the introduced projects and capital by all the companies, authorities and individuals subordinate to the county need to enter Yunmeng Industrial Zone, provide awards based on the provision of Award Method of Investment Attraction of Yunmeng County. 


As for enterprises introduced by towns and established in the Zone, the production, sales, profit and investment attraction belong to the statistics scope of towns. If the land acquisition subsidy of enterprise is undertaken by towns, the tax for enterprises to contribute and be put into storage is managed by towns; if the land acquisition subsidy of enterprise is undertaken by the Zone, the tax for enterprises to contribute and be put into storage is respectively managed by counties and towns, zone and town each taking up 50%, the same percentage for award for enterprises. 


Article 8 The infrastructure construction of foreign-invested enterprises in the Zone enjoy the following preferential treatment: 


(Ⅰ) The road out of enterprise plants in the Zone is constructed by county government in charge, opened up by priority, with no cost charged. 


(Ⅱ) The main pipe for industrial and domestic water is opened up for free. 


(Ⅲ)The power charge is based on the same price of enterprises in county; as for major clients of power utilization, county government strives to obtain relevant favorable electricity price policy in power utilization category from superior authority; if the capacity increase is below 1000 KVA and it is required to erect special line for power distribution, cost price is only charged; if the capacity increase exceeds 1000 KVA and it is required to erect special line for power distribution, county government strives to obtain relevant favorable policy from superior authority; as for special industry, county government could implement the subsidy on electricity price.

 

(Ⅳ) The foreign-invested enterprises complete the telephone installation within three working days; fax machine in the same circuit could enter the grid for free.

 

(Ⅴ) If the foreign-invested enterprises lay the gas pipeline, the initial installation cost is exempted, with only cost being charged.

Article 9 Implement the following policies on the foreign-invested enterprises in the Zone:

(Ⅰ) Implement “two-isolations”. Namely enterprises in the Zone are isolated from departments and the Employer is isolated from local residents, and Management Committee of Yunmeng Industrial Zone takes charge of the isolation work. 


(Ⅱ) Prepare and issue the protection card. The People’s Government for the county prepares and issues the protection card for personnel in foreign-invested enterprises; public security provides the critical protection for personal and property safety of card-holding personnel by laws. 


(Ⅲ) Employers and family members for enterprises in the Zone are considered as permanent residents in the county, and their exit formalities are handled in the county.

 

(Ⅳ) As for preparing and issuing the payment instruction card, except for taxation, water charge, electric charge and social insurance charge, other administrative charges are jointly verified by the foreign investment office in the county and other relevant departments; as for preparing and issuing the Payment Instruction Card for Foreign-invested Enterprises, the cost is charged by Yunmeng Foreign Investment Service Center and settled by relevant departments. 


Article 10 The method is subject to the explanation by People’s Government Office of Yunmeng in charge.

 

Article 11 The method is implemented after one month since the printing and issuing day. 


Yunmeng County Committee of CPC Provisions of People’s Government on Investment Attraction 


In order to further enlarge the opening up policy, encourage and attract more merchants outside the county to invest in and purchase property and promote the sustainable, healthy and fast development of our county, the provision is prepared based on the principle of mutual benefit and actual condition of Yunmeng in accordance with the national laws and regulations. 

  

Article 1 “Merchants outside the county” in the provision refers to domestic and overseas enterprises, groups, organization and individuals outside Yunmeng. If outward workers with Yunmeng registered permanent residence return to invest in and purchase property, they are considered as merchants outside the county. 


Article 2 If merchants outside the county arrive in Yunmeng to establish joint venture, cooperation and sole proprietorship enterprises, carry out “three-processing and one compensation” (processing of supplied materials, processing of supplied samples, assembling and processing of supplied parts and compensation trade) business and merger, rent and purchase the enterprise property of the country and carry out other allowable forms in national laws and regulations, they are protected by laws and enjoy all preferential policies and services in the provision. 


Article 3 Except the ban by explicit orders in national laws, the investment fields for merchants outside the county are not restricted. Mainly encourage merchants outside the county to participate in asset restructuring, contracting, leasing and merging and joint venturing by shares of state-owned and collectively-owned enterprises in the county; develop “four-waste” (waste maintain, waste water, waste slope and waste sands) by piece, establish development enterprises for agriculture, livestock and aquatic products; invest in establishing infrastructures like water & electricity, traffic and municipal administration, exploitation of mineral resources, development of tourist resources and social and public welfare undertakings; establish enterprises earning foreign exchange through export and high-tech industries.

 

Article 4 Implement the taxation preference for merchants outside the county. 

(Ⅰ) As for the enterprise by merchants established through investment, starting from the profit-making year, after local part for corporate income tax is levied, the financial disbursement is provided for the enterprise by ratio for technical transformation. In the first two years, the enterprise could obtain the financial disbursement based on the same amount, during the period from the third and fifth year, it could obtain 50% of financial disbursement; after five years, the enterprise could obtain certain award each year based on its contribution to county finance. 


(Ⅱ) If merchants outside the county re-invest the profit after tax obtained from their enterprises, increase the registered capital or invest in and establish other enterprises as capital, county finance regards the action as expanded reproduction based on the capital disbursement of the same amount in the local income part of the paid corporate income tax for the reinvested part of profit after tax. 


(Ⅲ) If merchants outside county invest and are engage in series of development projects like agriculture, forestry, animal husbandry and fishery and their invested amount is above RMB 500000 with the operation duration of above 5 years, 50% of the disbursed amount on agricultural tax and tax on agricultural specialty by county finance is used for their development; if they make use of “four-wastes” in the development projects of ecological agriculture or agricultural technology, the disbursed amount on agricultural tax and tax on agricultural specialty by county finance is used to support the production for three years; and during the fourth and fifth years, county finance disburses 50% based on the paid amount; after five years, they could obtain certain award each year based on its contribution to county finance. 


(Ⅳ) If merchants outside the county invest in and establish enterprises and their registered capital is above RMB 500 thousand, after enterprises are approved by the tax authority in charge, the local income part of corporate income tax is postponed for one year to be levied. 


(Ⅴ) If merchants outside the county are engaged in the transformation of old city by piece, their business tax for construction, business tax for house selling and contract tax are levied on the basis of the minimum standard, providing 50% of financial disbursement as award. 


(Ⅵ) As for enterprises earning foreign exchange through export which are established by merchants outside the county through investment, state tax department declares and handles formalities on their tax reimbursement for export so that the tax reimbursement could be promptly handled.

 

(Ⅶ) If the invested enterprises of merchants outside the county pay tax at above RMB 100000 for the corporate annual taxation, financial sector of country and town shall provide the lump sum award based on 2% of total tax payment; if the newly-increased annual tax payment of enterprises is above RMB 100000, they shall be provided with award based on 5% of the newly-increased amount

 

(Ⅷ) VAT of newly-established enterprise of merchants outside the county is levied on the basis of VAT rate; if the enterprise pays over RMB 500 thousand for annually paid VAT, county finance shall invest in the enterprise for the successive five years based on 50% of local retention without asking for return.

 

(Ⅸ) If merchants outside the county invest in the transformed projects in our county, based on the spirit of [2000] No. 59 Document, they shall enjoy the offsetting of corporate income tax for investment, and the specific method is implemented on the basis of national provisions. 


(Ⅹ) After the local income part in corporate income tax of merchants outside the county in investing traffic, municipal administration, development of tourists attractions and public welfare projects of meager profit is levied, the county finance shall provide the disbursement based on the same amount. 

Article 5 Implement charging preference for the invested enterprises of merchants outside the county. 


(Ⅰ) As for licenses that the invested enterprise of merchants outside the county should legally apply for, relevant departments charge the specified cost based on the specified standard and must not overcharge or overcharge in other unspecified forms.

 

(Ⅱ) The invested enterprises of merchants outside the county are charged with administrative fees; except for charge items specified by state and provincial government, other charges are exempted. If the charge items of state and provincial government have the amplitude to be adjusted, charge the fees based on the standard not higher than the lower limit.

 

(Ⅲ) As for the supporting facilities like water, electricity and communication required by the invested enterprise of merchants outside the county, relevant departments should provide the preference above 20% of total cost based on the investment nature. During the construction stage, as for facilities in power and water utilization for the temporary installation of construction site, relevant departments only charge the material cost and necessary labor service cost.

 

(Ⅳ) If merchants outside the county merge and purchase enterprises in our county, we do not charge the transfer fee of land and transfer fee of house property. All costs for assets appraisal, legal service, assessment and identification by CPA and transaction intermediary incurred by property transaction are charged on the basis of the minimum standard. The land-transferring fee is levied on the basis of the state specified standard, 50% of which could be returned to enterprises of merchants outside the county for construction of infrastructure by the approval of county government, and enterprises which have difficulty in paying the land-transferring fee could implement the annual rental system. 


(Ⅴ) If merchants outside the county entirely purchase the exceptionally poor enterprises in our county and sell the enterprise property for staffing, they could be entitled to the preferential policy of [2001] No. 25 Document issued by Yunmeng County Committee of CPC. 


(Ⅵ) The required land for the invested enterprises of merchants outside the county could obtain the land use right through transfer patterns like agreement, tender and auction. If they aim at establishing the social welfare projects, they could obtain the supplied land through administrative transfer pattern based on relevant provisions within the approval authority of county level. 


(Ⅶ) If merchants outside the county obtain the land use right for establishing industrial enterprises through transfer pattern, they could enjoy the preference as per 20% of land benchmark price in the region of the same category. 


(Ⅷ) If the lump sum investment is above RMB 10 million, reduce the half of local income part in the levied land-transferring amount; if the lump-sum investment is above RMB 30 million, after land acquisition formalities are legally handled by Yunmeng, the land is used for sole proprietorship or joint venture enterprises for free during the operating duration (the land user only legally pays the land use tax). 


Article 6 As for the high-tech industrial projects which are invested above RMB10 million by merchants outside the county, they could be provided with more preferential policies through the pattern of “one-project-one-policy”. 


Article 7 County Party Committee and county government establish the leaders’ panel for investment solicitation and project development that take charge of investment solicitation and project development. The internal leaders’ panel is set office (hereinafter referred to as Investment Attraction Office, and address set in Project Office of county), Administrative Vice County Chief of county government acts as Director of investment attraction and Director of project office acts as Administrative Vice Director of Investment Attraction Office. The Investment Attraction Office exercises the power on behalf of county government and it manages and serves for the entire investment attraction and project development. The regular communion system is established through agreement with merchants to obtain advice and suggestions.

 

Article 8 Legally protection of legal right of merchants outside the county.
(Ⅰ)Investment Solicitation Office and charging managements of the county prepare and issue the protection card for merchants outside the county, clearly marking the preferential policies that merchants outside the county could enjoy. Merchants outside the county could reject all kinds of charges beyond the card based on the card. 


(Ⅱ) Any unit or individual is forbidden to charge the raised funds and sponsor beyond the policy from the invested enterprises of merchants outside the county; and transfer the economic burden to the invested enterprises of merchants outside the county in the unspecified form; forcefully require the invested enterprises of merchants outside the county to participate in activities like appraisal, upgrading, identification and reaching standard; in random inspection and punishment on the invested enterprises of merchants outside the county; if enterprises need to be inspected and punished, carry out the inspection and punishment after approval of county government. 


(Ⅲ) Provide special protection on personal and property safety of merchants outside the county. If merchants outside the county suffer illegal infringement which leads to personal injury and property loss, judicial department should quickly register and investigate. If injury or loss could not be correctly handled or legally handled in the legal time limit, NPC should legally supervise, Disciplinary Inspection Department and Monitoring Department shall investigate the direct person in charge and malpractice, discipline violation and illegal responsibility of unit director. 


(Ⅳ) Fully respect and understand the living habit of merchants outside the county. Without approval, any authority and organization in the county must not infringe the personal right through the wards and night patrol, nor randomly punish merchants outside the county.

(Ⅴ)House-purchase, shopping, water supply, power supply, children’s schooling and employment of merchants outside the county should be equal to residents in the county. 

  

Article 9 The invested enterprises of merchants outside the county independently determine the quantity and pattern of labor based on labor laws, independently recruit, appoint, manage and fire laborers. The enterprises that hire laid-off workers at the specified ratio shall be entitled to the preferential policy on re-employment specified by our country and Hubei government.


Article 10 Provision of high-quality service for the invested enterprises of merchants outside the county. 

(Ⅰ) Declaration, project approval, approval, certificate handling, annual review and annual inspection on the investment project of merchants outside the county are intensively handled; one institute handles the external affairs; one window handles the due affairs, with one-stop service. If formalities are completed without special requirements, the above affairs must be handled for all formalities in the county within 7 days after acceptance, and Investment Attraction Office takes charges of convergence and supervision.

 

(Ⅱ) As for all kinds of charges undertaken by the invested enterprises of merchants outside the county, Investment Attraction Office of the county and relevant organizations annually verify the charged items, charging standard and amount for once and fill the legal toll card. The invested enterprises of merchants outside the county pay series of charges based on the specified times at “agent place for collection on confiscated income and administrative charge” established in each financing institution by financial sector of the county based on the toll card. Without approval, any authority must not arbitrarily charge from the invested enterprises of merchants outside the county.

 

(Ⅲ) Key invested enterprises of merchants outside the county implement enclosed management, and issue the protection card by public security and Supervision Bureau of the county. If the state personnel need to enter the listed protection enterprises for official activities due to the legal working duty, they should show their certificate and legally prepare relevant formalities, otherwise enterprises have the right for rejection. 


Article 11 Award policies: 

(Ⅰ) Set up the special fund for project development. As for the capital source, first extract 12 yuan by each year per person from the financially-supplied expenditure by number of people; then extract 3% from newly-increased financial revenue by county finance; still finance and raise funds through other methods. Three items are merged into the special user for storage and used for making up the insufficient cost at the early stage of key projects.

 

(Ⅱ) Set up the award fund for investment solicitation and project development. 5% of newly increased financial revenue from the county finance shall be extracted each year as capital source, stored by special account.

 

(Ⅲ) Annually appraise the excellent invested enterprises and individuals and provide certain material reward for foreign invested enterprises and individuals with large contribution. 


(Ⅳ) As for organizations and individuals that introduce funds and projects for our county, provide the following award (the working award method within the scope of official duty is separately formulated). 


1. Enterprises which introduce the unpaid capital are provided with awards based on 3% of introduced capital amount for domestic capital (capital outside county, similarly hereinafter) and 5% of introduced capital amount for foreign capital (including capitals in Hong Kong, Macau and Taiwan, similarly hereinafter).  


2. Enterprises which introduce the compensated capital (excluding credit funds of bank) as interest-free capital are provided with award based on 2% of the introduced capital amount; if the compensated capital belongs to low-interest capital (refer to the annual interest rate which is lower than the loan rate of the same category in the same period), enterprises are provided with award based on 0.5% of introduced capital amount for domestic capital and 1% of introduced capital amount for foreign capital.

 

3. Enterprises which introduce the credit capital of bank are provided with award based on 2% of the affirmed asset by introduced bank. 


4. Enterprises which introduce projects are provided with award based on 1% of actual input amount of fixed assets for projects (excluding the supporting revenue in the county)

 

5. The introduced capital is used in our county for one year and the introduced projects are provided with award after completion and put into operation and producing effect, and the award is provided from the disbursement in special account for award funds of investment attraction and project development.

 

Article 12 Miscellaneous. Special cases are handled with special methods; one issue is solved in one negotiation, and award is separately implemented. 

 

Article 13 The provision is implemented since the issuing day, subject to the explanation of Office of Legislative Affairs in county government in charge.