Revenue

1.       The foreign-funded enterprises are taxed at the income tax rate of 30%. All the foreign-funded productive enterprises here will enjoy the income tax rate of 24%. Those operating periods exceed 10 years will enjoy two years’ exemption from the profit year on and three years’ reduction by half in the third to the fifth years. The foreign-funded enterprises with skill-intensive and knowledge intensive industry, and those engaged in energy resources and transportation construction will enjoy the income tax rate of 15%.

2.       After the above-mentioned enjoyment for 3 years, the enterprises will enjoy the income tax rate of 15%. During the enjoyment, if they are acknowledged advanced-tech enterprises or their export values exceed 70% of the total output value, the enterprises will enjoy a return of 50% of their 8income tax. The tax rate after this return should be over 10%.

3.       All those foreign-funded enterprises will be exempt from the local income tax.

4.       To those productive enterprises (including initiating raw material base) with wholly foreign investment, or as joint-venture or cooperation with more than 10 years, extra charges to circulation tax collected by the government is free to them.

5.       Investors engaged in development of farming, forestry, animal husbandry and fishery in Yinchuan will be exempt from agricultural tax and special tax of farm and forestry for the first 6 years when they start to make profits.

6.       To those foreign investors who start activities such as setting up companies for tech-transference, tech-services and tech-training, the extra charges to turn over tax will not be collected.

7.       Foreign businessmen can be in a position of trust with the enterprises of serious economic losses in accordance with the regulation of the local government. During the period, the extra charge for circulating tax will be exempt. And their newly increased profits will belong to the managing side and they will be treated as having paid the tax on condition that the goal of the property guaranteed is achieved.

8.       The foreign investors investing in this West Region will enjoy the preferential policies, upon their further investment with their funds over 25%.

USE OF LAND

1.       Foreign-invested enterprises set up in Yinchuan, in the form of joint venture or cooperation, utilizing the land of their sin0-partner’s, can be exempt from land charge during the construction period. The enterprises built up on the expropriated land will be exempt from the charge for land use for 3 years.

2.       Those enterprises adopting advanced technology or engaged in making export products will be exempt from the charge for land use (below RMB2/m2 annually) during the construction period. When they start to make profit, the enterprises can be exempt from the charge for land use for 5 more years. The enterprises engaged in infrastructure construction of energy resources and transportation, etc., will be exempt from the charge for land use for 5 years besides the exemption during the construction period.

3.       Enterprises undertaking agriculture, forestry, animal husbandry and fishery on virgin lands will be exempt from the charge for land use (RMB 0.1-0.2 m2 per annum) for 10 years.

4.       Joint-ventures and cooperative enterprises in villages and towns will be exempt from the charge for land use for 10 years.

5.       With the approval of the local government, the productive enterprises established in Yinchuan, will enjoy the favor of purchasing land at price of 30-50% discount compared to the market price on condition that they need cultivated land for construction.

Others

1.       Those foreign investors whose products for export enjoy inland transportation subsidy RMB Yuan 0.05 for one dollar.

2.       Any intermediaries who have introducing foreigner to invest in Yinchuan will get the reward at the rate of 0.5-1% of the actual arrival of the funds. The reward will be provided by the beneficiary with the approval of the local government.