Incentive Policies to Investment

1、Foreign-invested manufacturing enterprises 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、Preferential land-use policy is to be granted to those investors who make investment on industrial projects. Upon approval, the investors who make investment on major industrial projects which are to be operated over 10 years are entitled to pay land leasing capital by installment in compliance with the land-use contract.

3、The investors whose investment volume surpasses 3 million US$ and the annual levied tax reaches 10 million RMB are entitle to receive 30-100% of the land capital he or she has paid from the relevant financial authorities.

4、Upon approval from the municipal government, the investors who has made investment in major projects which are to be operated over 10 years are to be entitled to incentives in land-use, local prize, and relevant fee deduction. They have also to meet one of the following requirements:

（1）Over 1000 locals are employed in the venture;

（2）The tax levied in the year following the venture’s going into operation surpasses 10 million RMB ( excluding customs tax and the tax levied by customs on behalf)

（3）The annual export volume of the venture is over 10 million USD;

（4）The invested project has positive impact on the readjustment of the economic structure of Hefei.

5、The investors who make investment on industrial projects in the development zones and industrial parks are exempted from administrative fees. And operational fees shall be deducted by 50%.

6、The investors who make investment in the development zones and industrial parks are allowed to purchase construction land by batches for later development.

Incentives to Those Who Introduce the Project

Prizes will be given to both domestic and overseas individuals or institutes who introduce a project involving over 1 million RMB capital. The standard varies according to in which area the investment is made:

1、The prize will be equivalent to 5% of the registered capital if the investment is made in the areas of industry, high-tech industrialization , industrialization of agriculture and other productive projects.

2、The prize will be equivalent to 3% of the registered capital if the investment is made in the areas of education, health care, culture, tourism, sports and operational civil undertakings.