Preferential treatment for foreign-funded enterprises in development zones of Anhui province

1. The leasing fees of land-using rights collected from the date of approval of the development zones will all be used in the basic facilities construction and land development within the development zones. 

2. The foreign-funded enterprises in the Development Zones can enjoy the following preferential treatment: 

(1) The productive enterprises with the running period over 10 years, will be exempted from the business income tax for the first two profit-making years and allowed a 50 percent reduction from the third to the fifth year. 

(2) The period for 50 percent reduction in business income tax may be extended for 3 years for those foreign-invested enterprises who use advanced technology and still keep technologically advanced after the expiration of the tax exemption and reduction. The reduced tax rate is no less than 10%.

(3) After the time limit of being treated as in the Item 1, all those export-oriented enterprises with the current year’s export value attaining 70% of their total output value, can only turn over the business income by half, the rate is no less than 10% of the current tax rate. 

(4) All foreign-invested enterprises will be exempted from the local income tax. 

3. Those enterprises processing with supplied material for export products are exempted from the import duties and import links taxes on their raw material, components, parts and equipment. If their products are sold domestically, the import duties and import links taxes will be made up for in accordance with the related regulations.

4. The enterprises with export operating right, when exporting their own products, are exempted from the export duties unless there are special rules stipulated by the State. 

5. For the foreign-invested enterprises, the departments concerned should simplify the exit & entry approval formalities of the overseas personnel and the Chinese personnel dispatched to abroad for business contacts.

6. Besides the above-mentioned treatment, the overseas investors investing in the Development Zones can enjoy other preferential policies stipulated by Anhui province and the State.