Provisions of Guiyang Municipality on Encouraging Foreign Merchants, Overseas Chinese and Compatriots from Hong Kong, Macao and Taiwan to Invest

Article 1 In order to encourage foreign businessmen, overseas Chinese, compatriots from Hong Kong, Macao and Taiwan and their companies, enterprises and other organizations (hereinafter referred to as investors) to invest in Guiyang, these Provisions are formulated in accordance with the relevant laws and regulations of the state and Guizhou Province and the actual situation of our city. Article 2 These Provisions shall apply to enterprises invested and established by foreign businessmen, overseas Chinese and compatriots from Hong Kong, Macao and Taiwan in Guiyang (hereinafter referred to as foreign-invested enterprises). Third to encourage investors to invest in our city to set up enterprises in line with national industrial policies, to set up export enterprises, advanced technology enterprises and import substitution production enterprises; In particular, encourage cooperation with existing enterprises in our city, introduce advanced technology, equipment and management experience, and set up joint ventures and cooperative enterprises. Article 4 Investors may transform existing enterprises in Guiyang by contracting, leasing, equity participation and capital purchase. Investors who have contributed more than 25% of their capital can enjoy the foreign-invested enterprise policy after going through the relevant formalities upon approval. Article 5 Encourage investors to invest in agriculture and urban infrastructure; Investors are allowed to develop land in pieces according to the urban planning of our city. Upon approval, investors can invest in real estate, tourism, transportation, services, finance, information consultation, design, medical care, hotels and other projects in our city. Article 6 Productive foreign-invested enterprises established in our city shall pay enterprise income tax at the rate of 24%.

Enterprise income tax shall be levied at the reduced rate of 15% if it belongs to energy, traffic construction, development agriculture or other projects encouraged by the state.

Technology-intensive and knowledge-intensive projects, or those with an investment of more than 30 million US dollars and a long payback period, will be subject to enterprise income tax at a reduced rate of 15% after approval. Article 7 For productive foreign-invested enterprises with an operating period of more than 10, the enterprise income tax shall be exempted from the first year to the second year, and the enterprise income tax shall be reduced by half from the third year to the fifth year.

For non-productive foreign-invested enterprises that have been operating for more than ten years, the enterprise income tax collected in the first year shall be refunded by the government, and the enterprise income tax collected in the second to third years shall be refunded by the government. (This paragraph is applicable to enterprises whose income tax is deposited in Guiyang) Article 8 For productive foreign-invested enterprises, the enterprise income tax may be reduced according to the following different situations after the expiration of the enterprise income tax reduction or exemption in accordance with Article 7:

Belonging to product export enterprises, where the output value of export products in that year reaches more than 70% of the output value of enterprise products in that year, the enterprise income tax can be levied by half, but not less than10%;

As an advanced technology enterprise, enterprise income tax can be halved within three years;

If the output value of export products reaches more than 40% of the output value of enterprise products in that year, the enterprise income tax levied shall be refunded by the government at 30%; (This paragraph applies to enterprises whose income tax is deposited in Guiyang)

Enterprises located in remote towns and ethnic minority towns in our city will be refunded 50% of their income tax by the government within ten years after approval. (This paragraph is applicable to enterprises whose income tax is deposited in Guiyang) Article 9 If an investor directly reinvests the profits obtained from the enterprise, increases the registered capital, or establishes other enterprises as capital, and the operating period is not less than five years, 40% of the reinvested income tax will be refunded upon approval. Investment in product export enterprises, advanced technology enterprises and educational undertakings will be fully returned. If the reinvestment is withdrawn within five years, the tax refund will be refunded. Tenth foreign-invested enterprises operating for more than ten years shall be exempted from local income tax for seven years (including enterprises invested by overseas Chinese and compatriots from Hong Kong, Macao and Taiwan for ten years); Investment in energy, raw materials, transportation, communication, agriculture and other development projects, establishment of export enterprises, advanced technology enterprises and establishment of enterprises in ethnic minority areas and remote areas are exempted from local income tax 10 year (including overseas Chinese, Hong Kong, Macao and Taiwan compatriots investing enterprises 15 year).

Houses built or purchased by foreign-invested enterprises shall be exempted from property tax for five to eight years from the date of completion or purchase (including houses built or purchased by overseas Chinese and compatriots from Hong Kong, Macao and Taiwan).

Enterprises with foreign investment shall be exempted from vehicle and vessel license tax for ten years. Article 11 The depreciation of fixed assets of foreign-invested enterprises shall be fully accrued, excluding the residual value. If there are special reasons for accelerating depreciation or changing depreciation methods, it must be approved by the financial department. Article 12 Income tax shall be levied at the rate of 20% on dividends, interests, rents, royalties and other income obtained by investors in various legal forms without establishing an institution in Chinese mainland. Article 13 The leasing fee of land use right granted by the state to foreign-invested enterprises shall be given preferential treatment according to the lowest price of similar land in China. Fourteenth in the form of joint venture and cooperation to carry out technical transformation of existing enterprises in our city, the civil part shall be exempted from supporting fees for urban infrastructure. Fifteenth foreign-invested enterprises have the right to refuse to pay unreasonable fees in addition to paying various fees in accordance with national, provincial and municipal regulations. Article 16 After being approved and registered, foreign-invested enterprises shall be governed and protected by the laws of People's Republic of China (PRC). No unit, organization or individual may illegally interfere with the normal business activities of foreign-invested enterprises and infringe upon their legitimate rights and interests.