YANGZHOU ECONOMIC DEVELOPMENT ZONE(YZEDZ)

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Geographic Location

Environment
            1.Nature Environment
            2.Environment Protection

Planning Area

Infratructure in yzedz
           1.Water Supply
           2.Electricity Supply
           3.Gas Supply
           4.Heat Supply
           5.Communications
           6.Road Facilities
           7.Rain and Waste Water Drain

Adaministrative Agent

Labour Source

Forms of Investment

Procedures of Investment

Special Policy
           1.Taxation
           2.Land Use
           3.Factory Buildings for Lease

Projects

The present items of taxation in YZEDZ include value-added tax,consumption,income tax,business tax,house tax,urban maintenance and construction tax,and some other minor items of taxation.Regulations and preferential measures as to major items of taxation and exemption are stipulated as follows:

1.Value-added tax is to be collected in accordance with "The provisional regulations for Duty on Value Added"

1.1 The tax ratio of application for value-added tax is 17%, 13%, 0, respectively.

1.2The starting point of tax payments for sales of goods and service supply and items of exemption are to be implemenied in accordance with "The Provisional Regulations for Duty on Value Added" and the relevant regulations stipulated by the Ministry of Finance.

1.3For the foreignfunded export enterprises which were established on or after January lst, 1994, tax on
expori goods is to be levied and refunded as is stipulated by the drawback system.

2.Consumption tax is to be collected in accordance witk "TheProvi- sional Regulations for Cousumption Duty",according to which export consumption goods are to be exempted from consumption duty.

3.Income tax for foreign-funded enterprises and foreign enterprises.

3.1Tax ratio of application is 15%.

3.2The enterprises concerned enjoy tax reduction and exemption as listed below:

a.Those foreign-funded productive enterprises which have been in operation for 10 years or more shall enJoy exemption from enterprise income duty in their first two profit-making years.

b.Those Sino-foreign Joint ventures who arc engaged in such construction projects as thosc of energy resources. communications and wharfs or docks may enJoy exemption from enterprise income tax, both national and local. in their first 5 profit-making years, provided that they have been in operation for 15 years or more.

c.Those foreign-funded export enterprises shall still enjoy a 50% reduction of what they should have paid as income tax as stipulated by taxation law, provided that the period for incoime tax reduction and exemption stipulaied by tax law is expired, and that the export output value of these enterprises in that year amounts to 70% of their total output value.

d.Those foreignfunded technologically advanced enterprises may enJoy 3 more years of income tax reduction at half the tax ratio stipulated by tax law.

e.All the foreign-funded productive enterprises in YEDZ may enjoy exemption from local income tax.

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