NHZ's Financial Policies for Supporting the Enterprises in the Zone

These policies are formulated specially for speeding up the construction of the NHZ, for improving the investment environments of the NHZ, for speeding up the development of the new & high-tech industries in the NHZ, for promoting the industrialization of the new & high-tech results, and for encouraging the establishment of the enterprises invested in the NHZ by the organizations coming from various regions, the units, the enterprises and the individuals.

These policies are applicable to the enterprises which have been approved by the Administration Commission of NHZ and entered in the zone; have been registered by the industrial and commercial administrations in the NHZ, and have paid the tax to the taxation organ in the NHZ: and have been financially registered by the financial organ and submitted all sorts of reports to the related organs in time.

(1) An enterprise, which has invested in the NHZ, and retained its tax in the NHZ, can enjoy the following policies:

1) As for a new & high-tech enterprise invested in the NHZ, after the period of two years for the enterprise income tax exemption expires according to the State regulations, the enterprise income tax, which has been levied on it at a reduced rate of 15%, can be refunded by the financial departments within 3 years at a rate of 50% of the NHZ' retained tax. As for a non-new & high-tech enterprise invested in the NHZ, the enterprise income tax can be refunded by the financial departments at a rate of 100% of the NHZ' retained tax within 2 years starting from the year of putting into production, and be refunded at a rate of 50% of the NHZ' retained tax from the third year to the fifth year; and since the sixth year, the enterprise income tax, which has been levied on it at a rate of higher than 18%, can be refunded by the financial departments in proportion to the NHZ's retained tax.

2) As for an enterprise, which has invested in the NHZ to construct such infrastructure projects as the water supply, the power supply, the gas supply and roads, etc., with its operation period of more than 10 years, the enterprise income tax can be refund at a rate of 100% of the NHZ's retained tax from the first year to the fifth year starting from the year when the project had been put into production; from the sixth year to the tenth year, the enterprise income tax, which has been levied on it at a rate of higher than 7.5%, can be refunded by the financial departments in proportion to the NHZ's retained tax; and after the tenth year, the enterprise income tax, which has been levied on it at a rate of higher than 15%, can be refunded by the financial departments in proportion to the NHZ's retained tax.

3) As for a Chinese-invested enterprise with its investment of more than 40 million RMB Yuan in the NHZ or a foreign-invested enterprise with its investment of more than 5 million USD, it can enjoy the refunds of the value-added tax at a rate of 50% of the NHZ's retained tax, within two years starting from the year when the enterprise had gone into production.

(2) A productive enterprise, which has been acknowledged by the Administrative Commission of NHZ as the enterprise in the fields of major industries in the zone, can enjoy the following preferential policies

1.) As for a newly-established enterprise which is engaged with the electronics & information industry and the bioengineering & pharmacy, the value-added tax or the business tax paid by it, can be refunded at a rate of 100% of the NHZ' retained tax , within two years starting from the year of putting into production, via its application for the refunds and the approval of the Administration Commission of NHZ; the enterprise income tax, which has been paid by it, can be refunded at a rate of 100% of the NHZ's retained tax within the first two years, and be refunded at a rate of 50% of the NHZ's retained tax within 5 years starting from the third year to the seventh year.

2) As for a productive enterprise which has engaged with the two major industries mentioned above in the NHZ, the enterprise income tax on the profits from the newly-increased investment and the expanded shares, can be refunded at a rate of 100% within two years via its application for the refund and the approval of the Administration Commission of NHZ;

3) As for the above-mentioned enterprises' new-product development projects listed in the municipal or above-the-municipal-level Torch Plan, the increased loans for development of the new products can be partially granted a discount on interest, via the enterprises' application for the refunds and the approval of the Administration Commission of NHZ.

(3) As for the general enterprises (except the new & high-tech ones) in the NHZ, they can be refunded for their paid VAT at a rate of 30% of the NHZ's retained tax, via the enterprises' application for the refunds, the verification of the financial departments, and the approval of the Administration Commission of NHZ, if they have not retained their tax in the NHZ, so that they can not enjoy the preferential conditions of the enterprise income tax.

(4) The funds for financially supporting the enterprises should be used in the expansion of the production of the enterprises. The enterprises which have executed the above-mentioned policies, with an operation period of less than 10 years, have to return the financial-support funds which have been enjoyed by them in the NHZ.

(5) If there occur some repetitions in all financial policies and taxation policies mentioned above, the most preferential policies can be executed.

(6) These policies should be executed from the 1st of January, 1999. The procedures of application for the financial-support funds will be otherwise formulated.