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Investment Policy
Preferential Policies

        1. For the nationally encouraged and restricted class B foreign-invested enterprises, foreign-invested research and development centers, and technology transfer foreign-invested projects, the imported equipment for self use within the total investment is exempted from import tariffs and link tax, with the exception of those included in the list of Imported Commodities for Foreign Investment Projects without Exemption of Taxes.

  2. For the technical innovation projects in the nationally encouraged and restricted Class B foreign-invested enterprises, foreign-invested research and development centers and advanced technology and export-oriented foreign-invested enterprises, if the equipment self private use and the accessory technologies, components and spare parts can not be produced domestically or the homemade can not meet the performance requirements, they can be imported. If they are within the approved scope of production and operation and are purchased with the self-possessed funds which are not included in the total investment, they are exempted from import tariffs and link tax.

  3. If the imported counterpart of the homemade equipment purchased by the nationally encouraged and restricted Class B foreign-invested enterprises within the total investment is exempted from taxes, the VAT (Value Added Tax) of all the homemade equipment will be refunded, and the enterprise¨s income tax will be deducted or exempted according to relevant regulations.

  4. As to the projects included in Catalogue of Priority Industries for Foreign Investment in Central and Western Regions (Jiangxi) of china, if the equipment for private use and the accessory technologies, components, and spare parts can not be produced domestically or the home-made can not meet the performance requirements, they can be imported and purchased within the total investment, they are exempted from import tariffs and link tax.

  5. The foreign-invested enterprises pay for software oversea according to the contracts for importing advanced technologies that are induced in the List of National Advanced High-Tech Products. These products are exempted from import tariffs and link tax.

  6. The foreign investment and new technology enterprises located in Nanchang High-tech Industries Development Zone will be levied the income tax at a reduced rate of 15%.

        7. In the administrative area of the province, the foreign-invested enterprises of a production nature with an operation term over 10 years will be exempted form the income tax in the first two profitable years and allowed a 50% reduction in the following three to five years.

        8. The nationally encouraged foreign-invested enterprises may be levied the income tax at a reduced rate of 15% for three additional years after the expiration of enjoyment of the existing tax preferential policies.

        9. The elected advanced technical foreign-invested enterprises may enjoy extension for another three years of 50% income tax reduction after the expiration of the exemption and reduction period or income tax. After the expiration, the export-oriented enterprises whose annual export volume amounts to 70% of higher of the annual output value may enjoy 50% income tax reduction for that year. But if the reduced rate is lower than 10%, the income tax should be levied at the rate of 10%.

        10. In Nanchang and Jiujiang City, the enterprises which operate technology and knowledge intensive projects, or have a foreign investment over US$30 million which need a long period to retrieve, and which are engaged in infrastructural projects of energy, communications and environment protection, may enjoy a reduced income tax rate of 15%.

        11. Foreign-invested enterprises engaged in farming, forestry and animal husbandry or located at underdeveloped remote areas may apply to the tax authority for a 15% to 30% reduction in income tax for 10 years after the expiration of the exemption and reduction period.

        12. Foreign investors who directly reinvest their owned profits in the export-oriented enterprises or technologically advanced enterprises for an operation term no less than five years, may obtain a refund of all the income tax paid on the amount of reinvestment after applying to and being approved by the tax authority.

        13. Foreign investors in a foreign-invested enterprise, who reinvest the net profits directly in this enterprise to increase its registered capital or in new foreign-invested enterprises in China for an operation term of no less than five years, shall obtain a refund of 40% of the income tax paid on the amount of reinvestment, after applying to and being approved by the tax authority.

        14. Foreign-invested enterprises whose technical development expense is 10% higher than previous year may apply to the tax bureau for deduction expected in the amount of duty of that year by 50% of the real technical development expense.

        15. Foreign-invested enterprises and research centers, foreign enterprises and foreign individuals engaged in technology transfer, technical research and the relevant technical consultation and technical service are exempted form business tax.

        16. Those which conform to the law of Tax and its Rules for Implementation and nationally uniform regulations may be exempted form enterprise¨s income tax, simultaneously they are exempted from local income tax. Those which may be levied enterprise¨s income tax at a reduced rate are levied a reduction of local income tax by the same margin.

        17. Foreign-invested advanced technological enterprises with an operation period of more than 10 years shall be exempted from local income tax during the 1st to 5th profit-making years and be exempted from local income tax by half during the 6th to 10th profit-making years.

        18. Foreign-invested export-oriented enterprises whose annual export volume amounts to higher than 70% of the annual output value are exempted from local income tax.

        19. Foreign-invested enterprises which are engaged in energy, communications, port or wharf construction, science and technology development with an operation period of more than 10 years, shall be exempted from local income tax during the 1st to 5th profit-making years and be exempted from local income tax by half during the 6th to 10th years.

        20. Foreign-invested enterprises engaged in farming, forestry, animal husbandry, hydraulics and processing of raw material from agricultural products with an operation period of more than 10 years shall be exempted from local income tax during the 1st to 5th profit-making years and be exempted from local income tax by half during the 6th to 10th years. Those with an operation period of more than 15 years shall be exempted from local income tax during the 1st to 5th profit-making years and be exempted from local income tax by half during the 6th to 15th years.

        21. Foreigners are encouraged to become shareholders of joint ventures and cooperative enterprises by providing technologies, achievements in scientific research, or through being responsible for marketing and management. Foreign investors can hold up to 35% of the total shares by providing technology. The percentage is subject to the agreements between both parties.

        22. Enterprises of this province purchased or established by foreign-invested ones may obtain the approval to register as foreign-invested enterprises and enjoy relevant policies if the foreign fund takes up 25%or higher than the percentage of the total registered capital.

        23. Time limit for the land use through lease by foreign-invested enterprises is as follows the maximum using time is 70 years for residence; 50 years for comprehensive use, such as industry, education, science and technology, culture, public health, sports and agricultural development projects; 40 years of commerce, tourism and recreation.