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Preferential Policies of Wenzhou Economic and Technical Development Zone
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2008-10-30
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1. Foe foreign-funded productive enterprises, the income tax is paid at the reduced rate of 15%, of which the enterprises with the business operation of over ten years, the tax will be free for two year starting from the profit-making year and reduced to 50 percent and levied at 7.5 percent of the rate from the third to the fifth year.
2. After the expiration of the aforesaid reduction and exemption period, for the technically advanced enterprises, the period of income tax payment at 50 percent of the rate will be extended for another three years. And for export-oriented enterprises, if their annual exports amount to 70% or plus of their yearly turnover, the income tax will be paid at 10% of the rate.
3. For foreign-funded productive enterprises, the local income tax will be paid at the reduced rate of 1.5% and will be free for tow years starting from the profit-making year and reduced to 0.75% of the rate from the third to he fifth year.
4. If a foreign-funded enterprise has suffered a loss for a given year, the deficit can be made up for by drawing the same amount from the profit earned in the following year. If this is not sufficient to cover the loss, the compensation can be continued in the same manner for following five years.
5. If foreign investors reinvest the profit earned in this or other enterprise with the operation period of over five years in the development zone after paying he enterprise income tax, they will have a draw-back 40% of the income tax already paid for the reinvestment amount. If they reinvest in the enterprises manufacturing products for export or providing advanced technology in the development zone, they will have a total draw-back of the income tax already paid for the reinvestment amount.
6. The products manufactured for export by enterprises are free from export duties and value added tax, except that other regulations will be stipulated by the state.
7. The products manufactured by foreign enterprises can be sold in
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China
through approval.
8. The rates for state land lease are lowered by RMB 10,000 to 50,000 Yuan per mu depending on the size of investment and status of paid-in capital, and for such hi-tech projects as confirmed by the Provincial or Municipal Scientific Commission, the rates can be lowered by RMB 30,000 Yuan to 60,000 Yuan per mu.
9. Enterprises can apply for raising a mortgage on foreign currencies or fixed assets in accordance with regulations stipulated by banks. The funds needed by enterprises manufacturing products for export or providing advanced technology can be granted preferentially from banks.
10. Enterprises have the right for recruitment of he workforce on their own according to laws. They have he right to decide on he establishment of set-ups and personnel, the right to hire or dismiss workers and staff members, the right to decide on the forms of wages, the pay scales and the rewards, penalties and subsidies for their workers and staff members. Enterprises implement the contract work system.
11. Enterprises can simultaneously enjoy a series of preferential terms stipulated by the state, provincial and municipal laws and regulations. In addition to the above preferential terms, the enterprises funded by overseas Chinese and Hong Kong and Taiwan compatriots will be allowed to make proper arrangement for the employment of their relatives, whose residence registration can be changed from the countryside to the development zone, according to the state regulations concerned.
12. Internally joined enterprises in the development zone can also enjoy certain preferential policies in accordance with the concerned regulations and with reference to foteign-funded enterprises.
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