YANGZHOU ECONOMIC DEVELOPMENT ZONE(YZEDZ)

ENGLISH VERSION           CHINESE(GB) VERSION            CHINESE(BIG5) VERSION

We are looking forward to cooperate with you!

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

a.Those foreign investors rrom the roreign-funded enterprises who have invested in the same enterprises the profiis distributed to ihem and who have increased registered capital or have invested the profits as capital in the establishment of the oiher roreignfunded enterprises which have been in operation for no less than 5 years shall enjoy drawbacks for duties paid, 40% of the total income tax already paid on that portion of reinvestment, provided that the investors have applied for drawbacks to the local taxation authorities. The preferential measures stipulaied by the State Council, if any, are to be imple- mented for that matter.

b.Foreign investors who have invested within the borders of this country the profits distributed to them by the enierprises to establish or expand enterprises or technalogically advanced enterprises shall be refunded the total amouni of enierprise income tax upon approval by the tax authorities.

c.The preferential measures for investors in terms of tax rembursement are only applicable to foreign investors. The foreignfunded enterprises shall not be categorized as foreign investors provided that they invest as investors in the other enterprises. Those foreign-funded enterprises whose stock is 100% held by foreign investors and who specialize in investment business may be considered as foreign investors, and shall, therefore, enjoy the relevant preferential measures stipulated by tax law of application in tax reimbursement ror reinvestment.

4.Domestic Enterprises Income Tax

Newly-established domestic enterprises whose in the Development Zone may enjoy preferential treatmenis of  tax reduction and exemption stiputated as follows:

4.1Newly-established high-tech enterpriscs (confirmed by the authorities concerned) shall enjoy exemption from income tax from the year in which they go into operation.

4.2Newly-established enterprises of tertiary industry shall enJoy the preferential treatments of income tax reduction or exemption for a given length of time in the light of the industry policy.

4.3Those enterprises products manafactured by making use of waste water, waste gas, waste residue and other waste material shall enjoy income tax reduction or exemption for 5 years.

4.4Those enterprises or institutions which are engaged in technology transfer and the relevant technical consultation, technical services and technical training shall enJoy exemption from income tax for a given period of time, provided that their net income is not more than 300,000 RMB yuan.

4.5Newly-established employment agencies may enJoy income tax reduction or exemption within 3 years provided that they have managed to find jobs for the citizens hitherto unemployed, the number of which has met the stipulated requirement.

4.6Welfare productive enterprises run by the civil administration organs may enjoy income tax reduction or exemption.

4.7Enterprises in the Development Zone shall be lavied upon at 15% flat tax in the case of enterprise income tax.

5.Foreign-funded enterprises shall be exempted from urban main- tenance and construction tax.

6.Other preferential treatments with regards to tax reduction or exemption are to be given in the light of the pertinent rcgulations stipulated by the Ministry of Finance.