Article 1
For sectors, which are encouraged by the state to receive foreign
investment, only 15% of the corporate income tax may be levied for
3 years following the expiration of the currently stipulated tax exemption
period.
Article 2
The income tax imposed on the incomes from technical transfer,R &
D, consultancies, technical service of foreign-invested enterprises,
R & D institutions or foreign individuals can be exempted, subject
to the approval of the State Taxation Bureau, Income tax can be levied
at 10% of the normal rate on the incomes of foreign enterprises from
their provision of patent technology covering areas of R & D,
energy development, traffic development, agriculture, forestry, husbandry
and rest of important technical development, and may even be exempted
for those with favorable conditions or those which have advanced technology,
subject to the approval of the State Taxation bureau.
Article 3
In case that R & D expenses of foreign-invested enterprises
increase by over 10%(inclusive of 10%)of the same of last year,
50% of the actually incurred R & D expenses of a same year is
allowed to off-set the corporate income tax of the year, subject
to the approval of taxation authorities.
Article 4
In case that a foreign-invested enterprise, within its total volume
of investment purchases Chinese made equipment and in case that
such equivalent equipment will be also duty free if imported, the
total VAT associated with such a Chinese made equipment shall be
returned, and an off-set to corporate income tax shall also be effected.
Article 5
Preferential deed taxes available for local employees shall also
apply to foreign-invested enterprises in the event of their purchase
of houses for employees.
Article 6
Preferential tax exemptions as stipulated Chongqing's Preferential
Policies for Encouraging Employments shall also apply to foreign-invested
enterprises recruiting local laid-off workers or the unemployed
for a period of 3 years, according to the employed numbers.
Chapter 2 Financial Management
Article 7
In the event of a foreign-invested enterprise seeking financing
support, foreign shareholders guarantee can accepted by Chinese
commercial banks, loans in RMB can be extended by designated Chinese
commercial banks handling foreign currencies to foreign-invested
enterprises upon mortgage in foreign curreney.
Article 8
A foreign-invested enterprise is allowed to mortgage its overseas
assets in the overseas branches of Chinese commercial banks in PRC,
and the loan shall be provided by Chinese commercial banks inside
PRC or their overseas branches.
Article 9
Qualified foreign-invested enterprises are allowed to issue stock
A or stock B.
Article 10
Foreign investment in energy and traffic sectors as encouraged
by the state may be provided with performance insurance and guarantee
insurance on a positive and prudent basis.
Article 11
Restrictions on foreign currencies of foreign-invested enterprises
resulting from non-trading shall be relaxed.
Article 12
Special Foreign & Economy loans available for state-owned foreign
trade companies shall be extended properly to cover foreign-invested
enterprise to enable more export.
Chapter 3 Land and Housing
Article 13
Foreign-invested enterprises that obtain the land-use right on
a let out basis is free of land-use fee.
Article 14
70% of the first 5 years rent can be returned to the foreign-invested
enterprises that have obtained the land-use right on a rent basis.
Article15
In the event of a merge or take-over of state-owned enterprises
by foreign-invested enterprises and on condition that the employees
of the state-owned enterprises are properly settled,the applicable
incentive policies to restructuring of state-owned enterprises shall
also apply to foreign-invested enterprises in addition to the favors
given to the land-use.
Article 16
Land-use fees shall be exempted for foreign-invested enterprises
participating in economical residential constructions.
Article 17
50%or 100% of the land-use fees paid by the foreign-invested enterprises
that have entered Chongqing Top 50 Enterprises may be returned for
the same year, subject to the approval of municipal government.
Article 18
Land may be arranged by Chongqing Economic & Technical Development
Zone and Chongqing High & New Technology Development Zone for
those foreign-invested enterprises that are located inside the zones
covering public utilities and the state encouraged sectors.
Chapter 4 Import & Export
Article 19
Advantageous projects of Chongqing with foreign investment as approved
by the state will enjoy the preferential policies as defined in
A Guided Catalogue of Sectors for Foreign Investment. For such project,
import of equipment for their own use, accessories and spare parts
which are not available in PRC or which do not have the required
technical specifica shall be duty and VAT free.
Article 20
For already established foreign-invested enterprises which are
in the Encouraged Project or in Restricted Project Grade 2, R &
D centers, advanced technology-oriented enterprises and export-oriented
enterprises,import of equipment auessories and spare parts which
are not available in PRC or which do not have the required technical
specifications shall be duty and VAT free provided that the import
is for the purpose of technical renovations in line with their approved
scope of business.
Article 21
R & D organizations set up by foreign-invested enterprises
are allowed to import within their total investment volume equipment,
technology accessories and spare parts which are not available in
PRC or which do not have the required technical specifications on
a duty and VAT free basis.
Chapter 5Means of Investment & SAIC Registration
Article 22
In case that a domestic enterprise is taken over by foreign companies
and the name of the taken enterprise is required to stay the same,
the registration authority will direct handle the procedure of the
enterprise being changed from domestic nature to a foreign-invested
nature.
Article 23
Qualified Chinese individuals are allowed to join in the joint
ventures or co-operative ventures.
Article 24
The maximum amount of foreign investment that is made in manner
of technology may reach over 35% of the total registered capital,
subject to mutual consent and assessment of relevant authorities.
Article 25
Foreign enterprises investing in local state-owned enterprises
shall enjoy the preferential policies of both foreign-invested enterprises
and state-owned enterprises, Chinese partners are allowed to use
their premises, buildings equipment, intellectual property, materials
and their own capitals, as well as the designated financing for
technical renovation as means of investmetn.
Chapter 6 Charges
Article 26
The transport, accommodation, medical treatment, schooling ,tourist
and shopping of foreigners in Chongqing are all as same as Chinese
citizens.
Article 27
In case that foreign-invested enterprises would need country side
collective owned land for construction of high-tech, infrastructure
and public utility projects inside Chongqing Economic & Technical
Development Zone and Chongqing High & New Technology Zone, the
Extra charge on road construction may be exempted subject to the
approval of Chongqing Government.
Article 28
Foreign-invested educational organizations and internation al shools
in Chongqing shall enjoy the same preferential policies applicable
to local schools, their schooling charges are to be made according
to their own cost of running ,all fees are exempted.
Chapter 7 Exit & Entrance
Article 29
Foreigners, HK Macao and Taiwan Patriots who are in Chongqing for
investment and business including their family members may obtain
a residence card or visa that is valid between 1-5 years.
Article 30
Foreigners with tourist visa who are visiting Chongqing for investment,
technial & cultural exchanges or who are recruited as senior
managers will be allowed for change of visa.
Article 31
Foreigners working in state-owned enterprises and foreign-invested
enterprises will be allowed for a 1-year multiple re-entry visa
if agreed by the enterprises the applicant is working for.
Article 32
On special cases foreigners without a visa entering China via Chongqing
Jangbei Int¡¯s Airport for business, technical &
cultural exchanges are allowed for a visa upon arrival within Chongqing¡¯s
scope of authority.
Article 33
Foreigners who have made special contributions to Chongqing may
be given a permanent residential right, enabling them to be free
of extensions or verifications for their stay in China, they are
entitled to apply for a 5-year valid multiple visa and their family
members may also be allowed to stay in Chongqing with them.
Article 34
Taiwan patriots who are investing in Chongqing and the senior managers
who are working in Chongqing are allowed for a multiple visa or
longer stay provided that their traveling passport are valid.
Chapter 8 & Miscellaneous
Article 35
Project with investment of foreign-invested enterprises shall be
treated as foreign-invested enterprises if the investment reaches
over 25%.
Article 36
Foreign-invested enterprise in coastal areas is allowed to come
to operate foreign-invested enterprises and domestic enterprises
in Chongqing on a contracting basis.
Article 37
Sectors for foreign investment, conditions for setting up foreign
enterprises and proportion of foreign investment in foreign-invested
enterprise shall be further relaxed, details to be publicized later.
Article 38
Trials for foreign investment shall be made in the service sectors
or intermediary agencies in the areas of finance, commerce, insurance,
telecom, foreign trade, transport, tourism, education hospital,
accreditation and inspection authorities.
Article 39
Project which is encouraged for foreign investment and which does
not need general considerations and co-ordinations to the state
can be approved by local government without restrictions of the
total investment volume.
Article 40
The Exit & Entrance Inspection Authorities shall stop inspections,
evaluations of the equipment imported by wholly foreign-owned enterprises,a
record system shall be implemented instead, no compulsory inspections
shall be imposed on the evaluations.
Article 41
In case that a technical achivement brought in by foreign investors
is effectively utilized in Chongqing and proved to be of significance
to the development of Chongqing, special discounted financing support
shall be provided and the foreign investors who have contributed
to this achievement will be awarded with a title of "onored
citizen of Chongqings'y Chongqing Government according to law."
Article 42
Place of accommodation for foreigners will be just approved once
being recorded instead of the past rules that such places would
be strictly assessed before operations.
Article 43
Correspongding preferential policies shall be applied to foreign-invested
enterprises whose manufacturing is located outside of Economic &
Technical Development Zone for better utilization of resources while
their assembly, sales, registration and tax paying happen inside
the zones.
Article 44
Vehicles registrations shall be administered separately for foreign
representation offices, foreign-invested enterprises,as well as
units outside of Chongqing, A separate service counter shall be
set up respectively in Chongqing Vehicle
Administration Office, Wanzhou Vehicle Administration Office. Qianjiang
Vehicle Administration Office, Fuling Vehicle Administration Office,
as well as the rest of branch offices.
Registrations shall be dealt with in a responsible manner and be
completed at once if the documentation of the applicant is complete
and corrtect.
Article 45
The above incentive provisions come to effect from 1 July 2000,
and is governed by the state laws.
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