Preferential Policies

In order to implement the opening up strategy, attract foreign businesses to invest in Mudanjiang, the following policies are formulated in accordance with the corresponding regulations promulgated by the central and provincial governments based on the local circumstance.

Article 1. Taxation

1. Newly built productive and processing enterprises of wholly foreign investment: Preferential quota and time limit will be determined by the local financial authorities according to the operation period and taxation already turned in. Enterprises scheduled to operate for a period of over 10 years:

A. Value-added tax retained by the local government will be refunded for the first 3 years;

B. Income tax and other local taxes will be refunded from the profit-making year for a period of 5 continuous years.

Newly built commercial businesses with fixed assets investment 3 million Yuan or more shall be allowed a 50% reduction by reference to the above clauses.

2. Joint ventures, cooperative enterprises: Preferential quota and time limit will be determined by the local financial authorities according to the operation period and newly-increased taxation referring to newly built wholly foreign investment enterprises.

3. Investors purchasing the property rights of local enterprises: A 28% deduction of estimated price will be given for a lump-sum payment, and 25% for installments by which down payment couldn't be less than 30% of the total value, and payment period couldn't exceed 3 years. Those purchasing by installments will enjoy the property rights with unpaid payment as debts, and 2% of occupancy expenses should be paid per year.

4. Investors re-investing with their shares of profits with operation period over 5 years: 50% of income tax already paid for the re-investment will be refunded in one time. If they re-invest in export-oriented and hi-tech oriented enterprises, income tax already paid for the re-investment will be refunded totally in one time.

Article 2: Land Use

1. Foreign investors who attain land use right by the way of selling shall purchase the land at a reduced price of 1 to 2 levels lower depending on the characteristics, scale and location. 20% of discount will be offered for a lump sum payment.

2. Investors purchasing the whole property right of bankrupt state-owned enterprises shall enjoy reduced prices of 30% to 70% of the nominal price. Those purchasing the whole property right as well as employing its stuff without changing the purpose shall alter the right of land use directly.

3. Investors who operate business utilizing existing factory buildings, working area and equipment or invest in the development of agriculture, forestry, animal husbandry and fishery shall enjoy favorable prices of 30% to 70% of the nominal price.

4. Investors in public facilities shall be granted land use right by means of administrative assignment.

5. Investors purchasing the land use right shall be allowed to transfer, lease, mortgage, exchange, inherit, denote or to cooperate with other investors during the operation period.

Article 3: Charges

1. The operation expenses charged by the administrative institutions will be undertaken according to the related regulations of the central and provincial governments, and charged at the lowest level if bound is stipulated. All charges beyond the regulations will be exempted. If the enterprises have difficulty in paying the due expenses, exemption, reduction or installments will be acceptable against approval by competent authorities.

Article 4: Finance

1. When investors apply for loans from financial institutions with conditions and terms in line with the loan policies of the state, the financial institutions shall grant the loan in 3 days provided the funds are available; if funds are not available active measures shall be taken to grant the loan within 30 days.

2. When investors withdraw cash from banking institutions with which accounts are opened, all convenience will be offered.

Article 5: Talents

1.Graduates of shortage specialties from junior college or higher education are welcome without any restraints on origin or ways of education.

2. Any units won't have right to collect any charge on the talents absorbed by any reason exclusive of explicitly stipulated.

3. Undergraduates or higher education, graduates of shortage specialties from junior college or higher education shall be granted formalities of employment, personal files, permanent residence and quota certificate of staple food against check-in certificate and diploma.

4. Postgraduates and higher education introduced in enterprises shall be offered basic wages of 5 levels higher than the fixed wages, while undergraduates 3 levels or more higher, graduates from junior college the fixed wages, of which those of shortage specialties 1 level higher is permitted.

5. Talents originate or operate non-sole-investment enterprises with 3 continuous years of prominent financial achievement will be rewarded by the beneficiary enterprises at a rate of 10% to 30% of the after-tax yearly profit. Special award will be given to those who have exceptionally outstanding contributions. Those who achieve conspicuous efficiency in originating sole investment enterprises will be granted a lump sum award from the local financial authority.

6. Talents introduced shall have his/her spouse and one unmarried child transferred or moved in the urban area of Mudanjiang.

7. Technical talents needed by enterprises will enjoy priority in granting the formalities concerning transfer. Those who hold leading positions in their specialties or technological fields or with important achievements will be offered housing by the employer and settle down allowance of 20,000 Yuan, and 40,000 Yuan or more will be given to those who have senior title or doctorate.

Article 6: Others

1. Investors shall be allowed to accelerate the depreciation of fixed assets against approval of tax authorities.

2. Investors with total investment over 500,000 Yuan will have his/her spouse, one unmarried child and himself/herself settle down in the urban area. Every increment of 200,000 Yuan will permit one of his/her relatives to settle down, ten at most.

3. Investors will enjoy the same rights and treatment as citizens of Mudanjiang on supply of water, electric power, heating, health care, and enrollment into nurseries, kindergartens and schools.

Article 7: Guarantee

1. Lawful civil rights and interests of investors and their enterprises will be protected by the law, which no one or no organization will be permitted to infringe.

2. The enterprises will have independent personnel power. Appointments and removals of personnel in-charge from state-owned investors should be carried out upon consent of the investors based on consultation. Employment or dismissal shall be decided by enterprise itself according to the related regulations of the state, and reported to labor authorities on files. Special issues arising during practice will be considered and resolved by concrete conditions.

The stipulated preferential policies herein are applicable to all companies, enterprises, organizations and individuals both at home and abroad that invest in Mudanjiang excluding those within administrative division of Mudanjiang. Projects and enterprises of foreign investment are to be confirmed by the municipal Planning Committee, among them Solely foreign-invested enterprises are to be confirmed jointly by the municipal Planning Committee and Foreign Fund Bureau.

The provisions stated herein are interpreted by Mudanjiang Planning Committee.

The provisions come into effect starting from the date of issue. In case of divergences with provisions issued before, this text shall prevail.