Preferential Policy

1,Foreign invested enterprises scheduled to operate for a period of 10 years shall be exempted from income tax in the first two years starting from the profit making year , and be granted a 50% reduction in the next three years .

2.Productive enterprises , Hi-teach modern agricultural projects with an actual utilized capital of US 1 million and a business operation of over 10 years, can still enjoy100% refund of the local income tax for another three years and 50% refund for the next five years. After the period of tax exemption and tax reduction mentioned above.

3. With regard to the science research, education, tourism , service agency ,transportation , storage business, local part of the paid income tax will be refunded fully in the first two years and 50% in the next three years after the profit-making year.

4.If foreign investors reinvest the profit earned in the enterprise with the operation period of over 5 years after paying the enterprise tax, they will have a draw-back 40% of the income tax already paid for the reinvestment amount after approval. If they reinvest in the enterprises manufacturing products for export or providing advanced technology, they will have a total drawback of the income tax paid for the reinvestment amount.

5.As regard to the encouraged foreign-funded manufacturing projects, 50% of the customs duty and added values for the imported equipment will be refunded from the income tax after its operation .

6.The encouraged projects (including value-added projects) neighbouring Hangzhou with an operation period over 10 years, local part of value-added tax will be fully returned within a certain period , Those with an actual utilized capital between $1 million and $3 million can enjoy this policy for a year, US 3 million----5 million , two years, over $5 million , three years.

7. 80 % of the house property tax paid for the local for the buildings built or purchased by foreign investors for their own use shall be returned to the enterprises .

8. The regulations and service fees for the large-scale projects or projects from the 500 strong enterprises are allowed to enjoy special preferential policies.

9.Foreign-funded enterprises are entitled to accelerating the depreciation of their fixed assets.

10.The foreign-invested enterprises are offered to take the green channel in the process of certificate application and approval. Priority is also granted to the foreign investors' health care and their children's school education .

11.Great encouragement will be provided to the enterprises in export, brand building ,credit insurance and exhibition abroad.