BIZCHINA / Investment
The Preferential Policies for Foreign Investment in Chongqing
(cqnews.net)
Updated: 2006-05-18 11:54
(Promulgated by Chongqing Municipality in January 1st , 1997)
����I - TAXES
����1. Local Income Tax Preference
����(1) Any foreign investment enterprise of a production nature
scheduled to operate for a period of not less than ten years shall, from
the year beginning to make profit, be exempted from local income tax in
the first to sixth years and allowed a 50 percent reduction in the
seventh to tenth years; the enterprise scheduled to operate for a period
of not less than fifteen years or with its total investment exceeding
US$30 millions shall, from the year beginning to make profit, be exempted
from local income tax in the first to eighth years and allowed a 50
percent reduction in the ninth to fifteenth years. Any foreign investment
enterprise of a production nature scheduled to operate for a period of
less than ten years or of a non-production nature scheduled to operate
for a period of not less than ten years shall, from the year beginning to
make profit, be exempted from local income tax in the first and second
years and allowed a 50 percent reduction in the third to fifth years.
����(2) In the regions inhabited by the minority nationalities or in the
remote underdeveloped areas defined by the State Council or the
provincial people��s government, any foreign investment enterprise of a
production nature engaged in the prospecting and exploitation of mineral
resources and scheduled to operate for a period of not less than ten
years may, upon approval by the tax authorities of an application filed
by the enterprise, continue to be allowed a 50 percent reduction of the
amount of local income tax payable following the expiration of period for
tax exemption and reduction; the enterprise scheduled to operate for a
period of less than ten years may, upon approval by the tax authorities
of an application filed by the enterprise, continue to be allowed a 50
percent reduction of the amount of local income tax payable in the sixth
to eighth years following the expiration of the period for tax exemption
and reduction.
����(3) Any foreign investment enterprise of a production nature may,
when its annual export value exceeds 50 percent of the output value, be
exempted from local income tax that year, after the specified reduction
and exemption expires.
����(4) Any foreign investment enterprise engaged in the exploration and
comprehensive utilization of natural resources, in power station,
airport, highway, bridge, harbor, wharf, waterworks (not including the
pipe network), water conservancy and other infrastructure facilities,
shall be exempted from local income tax.
����(5) Any foreign investment enterprise engaged in the housing projects
for the medium and low income urban residents shall, upon approval by
Chongqing People��s Government, be exempted from local income tax.
������2. Enterprise income tax preferences
����(1) The income tax on foreign investment enterprises of a production
nature shall be levied at the reduced rate of 24 percent.
����(2) The income tax on foreign investment enterprises established in
Economic and Technological Development Zones or the high and new-tech
enterprises in the High and New tech Development Zones defined by the
State Council shall be levied at the reduced rate of 15 percent.
����(3) The income tax on foreign investment enterprise in
technology-intensive, knowledge-intensive projects, in projects with
investment over USD$ 30 million, and with long time period for recovery
of investment, in energy, transportation and harbor constructions shall,
upon approval by the tax authorities, be levied at the reduced rate of 15
percent.
����(4) Any foreign investment enterprise of a production nature
scheduled to operate for a period of not less than ten years shall, from
the year beginning to make profit, be exempted from income tax in the
first and second years and allowed 50 percent reduction of the amount of
income tax payable in the third to fifth years.
����(5) Any advanced technology enterprise set up by foreign investment
enterprise may be levied at the reduced rate of 50 percent of income tax
for a period of another three years following the expiration of the
period for tax exemption and reduction.
����(6) Any foreign investment enterprise producing products for export
shall, when the annual export value exceeds 70 percent of its output
value, upon approval by the tax authorities, be levied at the reduced
rate of 10 percent of income tax for that year after the expiration of
the period for tax exemption and reduction.
����(7) Any foreign investment enterprise engaged in agricultural
development, deep processing of agricultural by products, agricultural
products for export shall, upon approval by the tax authorities of an
application filed by the enterprise, be allowed a 15 to 30 percent
reduction of the amount of income tax payable for a period of another
five years following the expiration of the period of tax exemption and
reduction.
����(8) Any foreign investment enterprise established in the regions
inhabited by the minority nationalities and in the remote underdeveloped
areas defined by the State Council and the provincial people��s
government, and engaged in agricultural development, in deep processing
of agricultural by-products with new technology in forestry development
shall, upon approval by the tax authorities of an application filed by
the enterprise, be allowed a 15 to 30 percent reduction of the amount of
income tax payable for a period of another ten yeas following the
expiration of the period for tax exemption and reduction.
����(9) Any foreign investor of an enterprise with foreign investment
which reinvests its share of profit obtained from the enterprise directly
into the enterprise by increasing its registered capital, or uses the
profit as capital investment to operate for a period of not less than
five years shall, upon approval by the tax authorities, be refunded 40
percent of the income tax already paid on the reinvested amount. The
investor which reinvests the profit as capital investment in the
enterprise producing export products or in technologically advanced
enterprise scheduled to operate for a period of not less than five years
shall be refunded all the income tax already paid on the reinvested
amount.
����(10) Any foreign investor which has no establishment or place in
China but derives profit, interest, rental, royalty and other incomes
from sources in Chongqing shall, besides the exemption on income tax
according to the law, be levied at the reduced rate of 10 percent of
income tax on such income.
������Where the funds, equipment is provided on favorable conditions, or
technology supplied is advanced, more preferences on income tax reduction
or exemption shall be decided by Chongqing People��s Government.
����(11) The income tax on the profit from the tollgate of the highway
invested by foreign investor shall be levied by the Tax Bureau of
Chongqing and be collected in Treasury of Chongqing Municipality, the
share of which that belongs to Treasury of Chongqing municipality shall
be wholly refunded to the investor before the foreign investment is
recovered.
������3. Preference of refund of tax on export products and extra tax paid
����(1) The tax exemption, refunding and compensation to the export
products by the foreign investment enterprises shall be dealt with
promptly by the tax authorities according to the Regulations of the State
Council on Tax Refunding for Export Products by Enterprises with Foreign
Investment.
����(2) The extra tax paid by the foreign investment enterprises
established before December 31, 1997, shall, due to the appearance of tax
on value added, tax on consumption and tax on business, upon approval by
the tax authorities of an application filed by the enterprise, be
refunded for a period of not more than five years within the approved
term of operation.
������4. Other taxes preferences
����(1) The business tax from tollgate on the highway with foreign
investment shall be levied by the local tax authorities and collected by
the Treasury of Chongqing Municipality, and shall be refunded or
reinvested on the construction of other highways before the investment of
the foreign investor is recovered.
����(2) Foreign investment enterprise of a production nature and foreign
investment enterprise of a non production nature scheduled to operate for
a period of not less than fifteen years shall be exempted from land on
housing tax (newly constructed buildings) and license tax on vehicle and
boats for ten years and three years respectively.
����(3) Foreign investment enterprise shall, upon the verification by the
tax authorities, be exempted from tax on housing and land and license tax
on vehicle and boats within the operation period when engaged in the
comprehensive agricultural exploration, the deep processing of
agricultural by products with new technology, the comprehensive
exploration and utilization of natural resources, energy and
energy-saving construction, transportation infrastructure, technical
renovation in state-owned medium and large enterprises, advanced
technology, products of export, urban infrastructure, protection of
environment and ecological equilibrium, development of tourism, middle
and higher technical education.
����(4) Foreign investment enterprise engaged in scientific agricultural
exploration in waste hills and waste land shall, from the year beginning
to make income, be exempted from tax on agriculture in the first to fifth
years.
����(5) Foreign investment enterprise engaged in agricultural specialty
products in waste mountain, waste hill, wasteland (uncultivated land)
shall, from the year beginning to make income, be exempted from tax on
agricultural special products in the first to third years.
����(6) Foreign investment enterprise engaged in the improvement of
grassland, pasture, grassed and breed of domestic animals shall be levied
3 percent of tax on animal husbandry.
����(7) Foreign investment enterprise of a production nature established
in the regions inhabited by the minority nationalities and in remote
underdeveloped areas defined by the State Council and provincial
people��s government shall be exempted from tax on housing and land, and
license tax on vehicle and boats.
����II - Business Registration
������5. Financial institutions overseas shall be encouraged to set up
branch establishments in Chongqing, international consortiums,
international corporations shall be encouraged to set up joint ventures,
cooperation venture, wholly foreign owned enterprises, and branch
establishments in Chongqing.
����6. Foreign investment enterprise shall be encouraged in the form of
joint venture and cooperation venture in the projects of power station,
airport, highway, bridge, harbor, wharf, of waterworks (not including the
pipe network) water conservancy and other infrastructure facilities.
Specific facilities from aforesaid projects can be run by foreign
investor independently, upon the approval of the government. Foreign
investment enterprise can invest in other enterprises or service business
related to the aforesaid projects according to the regulations of the
State.
������7. Foreign investment enterprise shall be encouraged to become a
shareholder, to purchase, merge or contract, lease the domestic
enterprises of Chongqing.
������8. Units with legal personality of colleges, universities and
research institutes, private enterprises shall be encouraged to set up
joint venture and cooperation venture with foreign businessmen. Overseas
Chinese students shall be encouraged to set up enterprises with
investment in the name of the company or works, the enterprises set up in
this way shall be regarded as foreign investment enterprises.
����9. Promotions for the development of foreign investment enterprises
and for rational flow of assets:
����(1) Foreign investment enterprise with good supply of funds or with
good markets for their products shall be encouraged to set up constituent
companies. Foreign investment enterprises shall be encouraged to
cooperate with domestic enterprises to open new foreign investment
enterprises or domestic enterprises.
����(2) The transfer between foreign capital and domestic capital shall
be encouraged for the rearrangement of foreign capital and domestic
capital. The transfer shall be regarded as change of registration, and no
registration fee shall be charged.
����(3) Foreign investment enterprise shall be encouraged to set up
market for means of production, market for essential factors of
production and other new types of market with the purpose of revive
assets, particularly the housing and land resources.
������10. Foreign investment enterprise engaged in major projects or with
registered capital of over US $2 millions can adopt a name with the
category of its trade. When overseas investor purchases or merges
domestic enterprises, it can either apply for a new name or keep the
original name for the new enterprise.
����III - Foreign currency control & credit
������11. Any foreign investment enterprise can open foreign currency
accounts in any banks or financial institutions in Chongqing Area which
have the right in foreign currency business. If there are special needs,
one can open foreign currency accounts at banks (including foreign banks)
in any other cities which have the right in foreign currency business.
Any foreign investment enterprise can open one or two balance accounts
according to one��s needs, if there are special needs, more than two
balance accounts can be opened.
������12. There is no borrowing limit for foreign investment enterprises
to get loans from financial institutions, enterprises and individuals
abroad, or from foreign financial institutions in China. The foreign
currency borrowed can be changed into Renminbi for the purchase of raw
materials and equipment in China. Foreign currency can be bought by
Renminbi for the payment of loans.
������13. The profit in foreign currency derived legally from one��s
investment can be freely remitted abroad. With agreement form the board
of directors and duty paid proof, one��s profit in Reminbi can be changed
into foreign currency in the bank appointed by the foreign exchange
control administration, the foreign currency can be remitted abroad or
used as capital investment in China.
������14. With an investment agreement a foreign investment enterprise
can open a three-month temporary foreign currency account for its
investment credit, the account can be extended if there are special needs.
������15. Foreign currency in cash from exports can be deposited into
foreign currency liquidating account or used for the payment of loans, or
be converted in Renminbi in foreign exchange bank and foreign exchange
center.
������16. Foreign investment enterprises shall have the same credit
support the Chinese export enterprise has from the banks in Chongqing
Area when there is shortage of working fund for the production of goods
for export.
����IV - Land and housing
������17. Any foreign investment enterprise which obtains the right to
the use of land from the grant of administrative authorities, and the
land is for business use, pays at the reduced rate of 50 percent of site
use fee (including development fee and land use fee) according to the
standard decided by Chongqing People��s Government; independent developer
pays at the reduced rate of 50 percent of land use fee according to the
standard decided by Chongqing People��s government; commissioned
developer pays development fee once and for all and pays at the reduced
rate of 50 percent of land use fee according to the standard decided by
Chongqing People��s Government.
����Any foreign investment enterprise which obtains the right to the use
of land from the grant of administrative authorities shall be exempted
from the land use fee when the land is used for agriculture, animal
husbandry, forestry, and fishing production, for scientific, educational
and public health purposes, for the construction of power station,
airport, highway, bridge, harbor, wharf and waterworks (not including the
pipe network), water conservancy facilities and other infrastructure
facilities.
������18. Any foreign enterprise producing goods for export or
technologically advanced enterprise or projects funded by foreign
investment enterprise shall be exempted from site use fee or land use fee
for a period of three years following the operation day, pay at the
reduced rate of 50 percent of the standard decided by Chongqing People��s
Municipal Government from the fourth year. The enterprise scheduled to
operate for a period of more than ten years shall be exempted from land
use fee for five years.
����Any foreign enterprise uses land temporarily for the prospecting of
mineral resources shall be exempted from the land use fee for a period of
not more than six months, and pays at the rate of 50 percent of land use
fee according to the standard decided by Chongqing People��s Municipal
Government when the period is more than six months.
������19. Any foreign enterprise established in the regions inhabited by
the minority nationalities or in remote underdeveloped areas defined by
the State Council or the provincial people��s government shall be
exempted from land use fee.
������20. Any foreign investment enterprise which purchases the right to
the use of land for the construction of power station, airport, highway,
bridge, harbor, wharf, waterworks (not including the pipe network), water
conservancy, and other infrastructure facilities shall, upon approval of
the authorized government, be allowed the lowest land price, the purchase
payment can be entered as suspense debit and be paid by installments
within ten years after the project is in operation.
������21. The site use fee or land use fee payable by foreign investment
enterprise begins to calculate from the operation day, one pays six-month
land use fee for period of more than six months but less than twelve
months, shall be free from land use fee for a period of less than six
months.
����The standard of site use fee or land use fee payable by foreign
investment enterprise may, under circumstances, be subject to adjustment
every five years. Those enterprises which pay up all the fee for fifteen
years, the standard remains unadjusted.
������22. Any foreign investment enterprise of a production nature
established in the form of joint venture, cooperation venture, technology
investment, and other forms shall, on the condition that the legal
personality of Chinese party as the controlling one in the business be
not changed, be exempted from the payment for the right of using the land.
����The Chinese party uses the land from the grant of administrative
authorities as contributions in the joint venture or cooperation venture,
and the legal personality of Chinese party as the controlling one is
changed, the foreign investment enterprise can, upon application, obtain
the right of using the land at the rate of 20 percent of the price. If
the Chinese party still has difficulty in meeting the specified
investment proportion, the enterprise can apply for even lower price for
the right of using the land or apply for a five-year delay payment.
������23. Any foreign investment enterprise in high-technology
enterprise, urban infrastructure facilities, public welfare, power
station, airport, highway, bridge, wharf, waterworks (not including pipe
network), water conservancy facilities, the housing projects for the
medium and low income urban citizens and the housing projects for
teachers, shall upon approval by Chongqing People��s Municipal
Government, be exempted from the additional charge for road construction
and vegetable plots funds when rural land of collective ownership is
needed.
����Any foreign investment enterprise engaged in the construction of
highway, harbor and wharf shall, along the highway and in the harbor
district, have priority in housing and land development projects, in
service facilities, in road and water transportation. The foreign
enterprise can obtain land for its development and use at favoured price
in the neighboring towns.
������24. When the ownership or management right of Chinese party is
leased to body corporate abroad and the legal personality of the Chinese
party is canceled, the right of using the land shall be claimed back by
the county government, and then be transferred or leased out to the lease
enterprise for its use, the lessee shall pay the price for the right of
using the land or land use fee according to the regulations of the
government.
����When the whole Chinese enterprise but the legal personality of
Chinese party is leased out or only the management right is leased out,
the right of using the land can either be dealt with according to the
aforesaid provision or, upon the approval of the land management
department of Chongqing People��s Municipal Government, be leased out to
the lessee by the Chinese enterprise, the lessor (or the party stipulated
by the lease contract) pays the land use fee.
������25. Any foreign investment enterprise engaged in the housing
projects for the medium-and-low income urban residents shall be allowed
the preference stipulated in the regulations on the management on the
Housing Projects for the Medium and Low Income Urban Residents by
Chongqing People��s Government, the land shall be granted by the
administrative authorities, and the project shall be exempted from or be
network of trading establishments, the fee to the construction of civil
air defense, the fee to the post and telecommunication facilities, the
fee to fire-fighting facilities, the funds for the renovation of
hazardous school buildings, the funds for water and electricity. The
apartments houses for the medium and low income urban residents is to be
sold at parity price or at low profit first and then to be rented.
������26. Only registration fee is charged when foreign investment
enterprise registers for the right to the use of land. And only the cost
is charged for the land appraisal to foreign investment enterprise
engaged in high tech enterprise, products exporting enterprise, basic
industry, public utilities, the housing projects for the medium and low
income urban residents, the housing projects for teachers, the
transformation of the enterprises in difficulty or the old enterprises.
������27. Any foreign investment enterprise which needs land owned by the
rural collectives for its projects, the land management department shall
represent the government of the same level to make plans on the supply of
land, and sign a contract with the foreign investment enterprise.
������28. Any foreign investment enterprise engaged in public welfare,
the scientific and educational programs supported by the state, the
construction of power station, airport, highway, bridge, wharf,
waterworks (not including the pipe network), the housing projects for the
medium and low income urban residents and the housing projects for
teachers, and other uncommercial enterprises, the land for the projects
shall be granted by the county and above governments. Foreign enterprise
engaged in production, services, real estate, tourism and other
profitable enterprises, the land for the projects shall be acquired by
means of purchase, transfer and lease.
����The right to the use of land acquired by the means of lease by
foreign investment enterprise can, upon approval and within the term of
the lease contract, be subleased and inherited, but cannot be mortgaged.
������29. The land use fee or site use fee shall be collected by the land
management department of district, city or county.
������30. When the right to the use of land is acquired by foreign
investment enterprises through the grant of the administrative
authorities, or the ownership of real estate is transferred to foreign
investment enterprises, the actions should be ratified by the authorized
government according to the regulations of State Council. When the
authorized government decides not to ratify such actions, the transferor
should hand in the land earnings from the transfer to the Treasury
according to the regulations of State Council.
������31. Any foreign investment enterprise established in regions
inhabited by minority nationalities and in the remote underdeveloped
areas defined by the State Council and the provincial people��s
government, be allowed the more favorable policy separately negotiated.
������32. When the land owned by the rural collectives is needed for
foreign investment enterprises, the land shall be first purchased by
Chongqing People��s Government, county(city) government, and then be
leased to the foreign investment enterprises according to the law. When
the rural collective economic entity uses the original site as
contributions or as the condition for cooperation, or use other land in
the joint venture with foreign investment enterprises in agriculture,
forestry, animal husbandry, fishing development, the site or land shall,
upon approval by the land management department of Chongqing People��s
Government, and the concerned agreement shall be presented to the
Chongqing People��s Government for record. The land ownership cannot be
changed and the land cannot be transferred within the term of the
contract.
����When the land owned by the rural collectives is needed for foreign
joint stock company, it can either be dealt with according to the
aforesaid provision or according to the regulations of the State on the
land management for joint stock company.
������33. When appraisal in real estate of foreign investment enterprise
is entrusted, only half appraisal fee of the standard shall be charged.
����V - Operation of business
������34. Foreign investment enterprises shall be able to decide by
themselves the ratio of their products for overseas market to for
domestic market without restrictions, except for those products for which
the State has special regulations.
������35. When the foreign investment enterprise investing in the
construction and operation of highway, the standard of tollgate it
charges can be adjusted according to price inflation index, upon the
approval of Bureau of Finance, Bureau of Price Administration, Bureau of
Transportation.
������36. In the Chinese-foreign cooperation enterprise engaged in the
construction and operation of airport, highway, bridge, harbor, wharf,
waterworks (not including the pipe network) and water conservancy
projects, the foreign partner shall have priority in the allotment of
earnings from the above projects during the cooperation period.
����VI - Material import & export
������37. Any foreign investment enterprise producing products for export
can, upon approval by the customs of an application filled by the
enterprise, set up bonded warehouses or bonded factories according to its
needs.
������38. When a foreign investment enterprise needs to import goods for
the manufacture of products for domestic market or to export its own
products, it should apply to Committee of Foreign Trade and Economy of
Chongqing for licenses according to the regulations on the management of
import license on commodities of the State, if necessary, those goods for
which no import or export licenses are needed should be released in order
by the customs after examination of the concerned certificates.
������39. Any foreign investment enterprises established between October
1, 1995 and March 31, 1996, and its total investment is below US$30
million, the deadline for the arrival of imported goods will be put off
for six months to June 30, 1997, or its total investment is over US $30
million (including US $30 million), the date of arrival of imported goods
is before June 30, 1998, the goods imported shall have the going tax
preferences.
����If the singed import contract of above foreign investment enterprises
cannot be completed during the period of grace, the period can be
extended again according to the regulations of the State.
����Tax exemption and reduction on special vehicle and boats within the
scope of business of foreign investment enterprises shall be approved by
the Customs Head Office.
������40. If the foreign investment is brought into the line with the
technical innovation projects which were included in the technical
innovation plans of the State and of Chongqing before April 1, 1996, and
the projects with investment of over 50 million Renminbi in energy,
transportation and metallurgy projects, and the projects with investment
over 30 million Renminbi in light industry, textiles, electronics, the
equipment imported before December 31, 1997 shall be allowed a 50 percent
reduction on taxes. As to the above projects with investment below 50
million Renminbi and below 30 million Renminbi respectively, the
equipment imported before December 31, 1996 can still be allowed a fifty
percent reduction on taxes. If the import contract cannot be completed
before the date, the foreign investment enterprise can apply for the
extension of the period of grace through Committee of Trade and Economy
and Treasury, the extension is to be approved by the State Council.
������41. Import equipment and articles for science and education
purposes by colleges, universities and research institutes continue to
enjoy tax immunity.
������42. Import articles specially designed for the handicapped continue
to enjoy the tax preference. The tax preference on articles donated
gratuitously by foreign governments and international organizations shall
still be valid. The tax immunity is to be approved by the customs.
������43. The regulations ratified by the State Council in the
correlation of ratio of parts made in China to import parts and the
variable levy system on cars, other vehicle (light truck) and video
cameras remain valid during��the Ninth Five-Year Plan��.
������44. In the��Ninth Five-Year Plan��the airplanes imported by the
civil aviation departments shall continue to have a reduced rate of duty
on value added, the materials and goods imported by the Aircraft Industry
Corporation for the production of mainline airplanes shall, within the
import quota approved by the State Council, be exempted from customs duty
and duty on value added.
������45. The special equipment imported with the approval of Ministry of
Transportation and other competent industrial departments for
communication, harbor, railway, highway and airport continue to have a 50
percent reduction on taxes.
������46. The domestic enterprises engaged in the developmental
settlement of population in the Three Gorges Reservoir District shall
have quota fixation management for the goods imported for their projects,
the import duty and duty on value added shall be totally refunded.
����The customs shall give priority and simplified procedures in passing
the imported goods for major agricultural projects, major projects, key
products, high-tech products, high-tech enterprises and for the
enterprises with credit worthiness classified by the customs.
������47. When the inspection and testing of imported equipment of
foreign investment enterprises is conducted jointly by the Commodity
Inspection and Testing Office and the technical personnel of the
concerned enterprises, and the foreign investment enterprises engaged in
the exploration of natural resources, power station, airport, highway,
bridge, harbor, wharf, high-tech enterprise, or its export value
exceeding 50 percent of total annual production value, the fee to
commodity inspection and testing shall be charged at reduced rate of 50
percent of the standard of the State, on this basis, a 20 percent
reduction of the fee shall be allowed to the part above 5000 RMB Yuan, if
the charge for one inspection and testing is over 5000 RMB Yuan.
������48. Toward those foreign investment enterprises which are qualified
for the certificate of origin for general system of preferences, the
Commodity Inspection and Testing Office should help them understand and
make use of the preferential treatment from the general system of
preferences, and offer to provide certificate for general system of
preferences for every shipment exporting to the country offering the
reference.
������49. The imported machinery, equipment or spare parts for the
foreign investment enterprises shall, for which the foreign investor sets
the price and provides the capital, or the foreign investor is entrusted
for the purchase, be subject to the appraisal of the Commodity Inspection
and Testing Office and a quick, efficient and fair appraisal shall be
made.
������50. In order to enhance the competitiveness of the products of the
foreign investment enterprises in both the international and domestic
markets, the Commodity Inspection and Testing Office shall make use of
its advantages in technology and personnel to help the enterprises in
quality control so as to enhance the quality of product according to the
international standards, to spread and implement ISO9000 systems.
����VII - Personel and labour management
������51. Cadres with status of ownership by the whole people should be
allowed to move to foreign investment enterprises, with the exception of
those who are under the special restriction of the State. Their moves
should be regarded as moves to the work units of ownership by the whole
people, and the working units, the personnel departments of governments,
personnel exchange agencies should deal with necessary formalities for
them. Those managerial and technical personnel working in foreign
investment enterprises, their moves should abide by the labor contract
signed by the two parties, one cannot sign a new labor contract before
the old contract terminates.
������52. The returned personnel from abroad and the graduating students
from colleges and technical secondary schools retain their own status
stipulated in the regulations of the State, and their status shall be
acknowledged in the future transfers. The personal files of the
professional and managerial personnel, the graduating postgraduates,
graduates from colleges and technical secondary schools shall be managed
by personnel exchange agencies under the personnel department of local
governments.
������53. When the professional and technical personnel working in
foreign investment enterprises need to apply for the professional or
technical qualifications, or participate in the examinations conducted by
the State for the qualifications or for practice licenses, the personnel
exchange agencies under the concerned personnel department of government
shall deal with the matter according to the regulations formulated by the
Working Group on the Reform on Academic and Technical Titles.
������54. Foreign investment enterprises can, according to their needs,
employ personnel belonging to work units of different ownership, who may
be transferred (shifted) or temporarily transferred to the enterprises.
����VIII - Exploration of mineral resources
����55. Foreign investment enterprises engaged in the exploration of
mineral resources shall have the following preferences besides the
preferences in the concerned regulations of the State:
����(1) The fee to the prospecting in the specified district can be paid
by installments before tax in the first and fifth years beginning from
the commercial exploitation of the ore deposits, and can be paid by
installments before tax in two years where the term of the license for
mineral exploitation is less than 10 years.
����(2) The regulations of the State on the acceleration of depreciation
for fixed assets shall be applicable during the phase of commercial
exploitation.
����(3) Reduced rate for mineral resources compensation shall be taken
into consideration where the exploitation are done in the regions
inhabited by the minority nationalities and in remote underdeveloped
areas defined by the State Council and the provincial people��s
government.
����(4) Reduced rate or exemption from mineral resources compensation
shall be taken into consideration where internationally advanced
technology is used in the exploitation of low-grade ores or ores
difficult for dressing and smelting.
����(5) Foreign investment enterprises which operate at a loss due to
force mature can be allowed a maximum of 50 percent reduction of the
mineral resources compensation or delayed payment for the deficit year.
����(6) For the comprehensive exploitation of associated minerals in the
specified district, the mineral resources compensation shall be levied at
the reduced rate of less than 50 percent, where the kinds of ores are
under the restrictions of the state, reports shall be presented to the
Administration on Geology and Mineral Resources of Chongqing for record;
those kinds of ores of which the purchase is monopolized by the State
shall be purchased by the departments appointed by the State.
����(7) When the mineral products mined are to be smelted and processed
in Chongqing, the concerned departments shall provide help and
convenience for its smelting, processing and transportation.
����IX - Local fees
������56. A special ID card for foreign staff and workers in the foreign
investment enterprises can be obtained upon application, with the card,
the foreign staff and workers shall enjoy national treatment when having
accommodation in the hotels for foreigners and tourists or receiving
medical care in hospitals of Chongqing, the charges can be settled in RMB.
������57. Water, electricity and gas supply for foreign investment
enterprises should be included in the supply program of the local
departments, and foreign investment enterprises and domestic enterprises
shall be treated equally and be charged with the same standards of price.
������58. The standard of the road user charges for the cars for their
own use or the cars brought in from abroad by the foreign investment
enterprises shall be the same as that for domestic enterprises, the
original standard of double charges shall be canceled.
������59. Foreign investment enterprises have the right to refuse any
administrative, institutional fees which are not stipulated in the
regulations of the State Council, the Ministries and Commissions of the
State, or not approved by Chongqing People��s Municipal Government.
����X - Other matters
������60. Foreign investment enterprises which invest in transforming
bankrupt enterprises, enterprises in difficulty, and take responsibility
for the take-over and arrangement of the staff and workers of the
original enterprises shall be exempted from the land use fee, and shall
be allowed other preferential policy.
������61. When state-owned enterprises use part of their assets as
contributions in Chinese-foreign joint ventures and cooperation ventures,
in the appraisal of the assets as contributions, medium-size enterprises
shall have a right of modification within the extent of 10 percent, small
enterprises, 20 percent.
������62. Companies, enterprises, economic organizations or individuals
from the regions of Hong Kong, Macao and Taiwan engaged in joint
ventures, cooperation ventures or wholly foreign-funded enterprises shall
be treated with reference to these measures.
������63. These preferential measures shall be in force in January 1,
1997. The preferential measures and tax preferences for the foreign
investment enterprises established before January 1, 1997 remain
unchanged.
(For more biz stories, please visit Industry Updates)
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