| Investment - Policy& Regulation |
Chapter I General Rules
Article 1:These regulations are formulated according to the relevant laws and regulations of the state and Guangxi Zhuang Autonomous Region for promotion Beihai's development and construction.
Article 2:These regulations are applied to Chinese-foreign joint ventures and Chinese-foreign cooperation enterprises and wholly foreign owned enterprises in Beihai, hereinafter referred to as "foreign investment enterprises" established by foreign companies, enterprises and other economic organizations or individuals, hereinafter referred to as "foreign investors".
Article 3:These regulations are also applied to foreign investment companies and enterprises in Beihai established by Hongkong, Macao and Taiwan companies, enterprises and other economic organizations or individuals.
Article 4:Projects, which have substantial effects on the development of Beihai's national economy, will enjoy more preferential policies based on these regulations.
Article 5:The taxes mentioned in these regulations, which are needed to be refunded, will be given back within one year in principle.
Chapter II Tax
Article 6:With an operation period of 10 years or more, a foreign investment enterprise of a productive nature can enjoy exemption from enterprise income tax in the first two year beginning from the year the enterprise begins to earn a profit, a 50% reduction of enterprise income tax in the next three years, and the other 50% of the income tax can be fully given back through the local finance bureau after it is paid, 50% of the income tax in the next five years (from the sixth to tenth year) can be refunded through the local finance bureau after tax is paid.
Article 7:A foreign investment productive enterprise established in Beihai will enjoy a reduced income tax rate of 15% if it is a project that requires high and new technology or is engaged in construction related to energy, transportation and ports or has a long repayment period and total investment is more than 30 million US$.
Article 8:A foreign investor, who invests in barren mountains, disuse ditch, wild beach including uncultivated lands, desert slope, barren sand, disuse grass and water in countryside, can be fully refunded agricultural specialty tax through the local finance bureau within 3 years beginning from the year the enterprise obtains income after the tax is paid. If he invests in other projects such as planting, breeding, sea products processing, he can be given back 70% of the agricultural specialty tax after it is paid.
Article 9:Foreign investment enterprises established in Beihai Economy and Technology Development Zone, Bonded Tariff Zone, High and New Technology Development Zone and Beihai Silver Beach State Vacation Zone will enjoy the preferential policies related to these special zones.
Article 10:After the tax reduction period, and the enterprise that produces goods for export pays a reduced income tax of 50% when its output value of the exports in the given year exceeds 70% of its total output value in the given year but the enterprise, which has paid income tax according to tax rate of 15% stipulated, pays a reduced income tax of 10% if it meets the above requirements. After the tax reduction period, a high and new technology enterprise technology enterprise which is still recognized as a high and new technology enterprise can enjoy a reduced enterprise income tax of 50% in the next three years.
Article 11:A foreign investor obtaining his share of profits of the enterprise after paying necessary tax can enjoy a refund of personal income tax after it is paid.
Article 12:A foreign investor, who uses the share of profits in the business to reinvest in Beihai in expanding production, or increasing registered capital or establishing a new enterprise whose operation period is five years or more, can be refunded 40% of the enterprise income tax of the reinvested part the business paid when applied to and approved by the tax authority. If the reinvestment is for expanding export-oriented business or advanced technology business, the investor enjoys a hundred percent refund on the reinvested part the business has paid.
Article 13:A foreign investment enterprise can use the income of the next year to make up for the losses in a given year, he can use the income of the following year when the income of the next year cannot meet the losses yet he cannot continue to do this in the sixth year or later.
Article 14:A foreign investment enterprise established before or by December 31,1993, which is tax-burdened due to the new levy of the value-added tax, consumption tax and business-tax, can be given back the above-mentioned tax paid when it applies to and is approved by the tax authority within a period of and no longer than five years (excluding the deferred period approved after January 1,1994).
Article 15:A foreign investment enterprise established before or by December 31,1993. Whose products are for export, except the products restricted for export by the state, enjoys exemption from the value-added tax. A foreign investment enterprise established after January 1, 1994 can be refunded the value-added tax after it is paid.
Article 16:A foreign investment enterprise, which falls within the category of encouragement and belongs to Item A in restriction category and technology transfer projects listed in Guide For Foreign Investment Trades, can enjoy exemption from customs duties and import value-added tax from January 1, 1998. When it imports necessary equipment with the invested capital, except for those restricted by the state and listed in Guide For Import Goods not Exempt From Tax in Foreign Investment.
Article 17:A foreign investment enterprise, whose products are for export, except the products restricted for export by the state, enjoys exemption from export customs duties.
Article 18:Water, power, transportation and telecommunication facilities needed for construction and production by a foreign investment enterprise will be provided first before other state-owned enterprises but charged according to the standard for state-owned enterprises in Biehai,except the standard provided by the state. A high and new technology enterprise or foreign investment enterprise with foreign exchange generated by exports can be charged 10%-20% reduction of the standard.
Chapter III Residence RegistrationArticle 19:With an operation period of 10 years or more, a foreign investment enterprise, which employs technical and management staff from other parts of China , can apply for residence permits in Beihai according to the investment and the requirement of the enterprise. For productive enterprises, one person will be permitted to register residence in Beihai per 30 thousand RM. investment of fixed assets. For non-productive enterprises, one person will be permitted to register residence in Beihai per 50 thousand investment of fixed assets. Advanced technology enterprises and enterprises engaged in export business can enjoy an 20% more residence permits. Large-scale enterprises with total investment less than 20 million US$, and enterprises with special conditions, which need more staff to be permitted to register residence in Beihai, can be examined and approved separately. The fee for residence registration will be collected according to Document No.43 promulgated by Beihai City Government in 1997.
Article 20:For residential buildings in Beihai bought by overseas Chinese and compatriots in Hongkong , Macao and Taiwan , people who move in can be permitted to register their residence in Beihai. One person will be permitted for every 25 square meters of residential buildings. But for one apartment, six persons will be permitted at most. The fee for residence registration will be collected according to Document No.43 promulgated by Beihai City Government in 1997.
Article 21:Foreign investors who engage in business operation in Beihai can appoint their relatives and friends as their agents and can be permitted to choose a number of them to reside in Beihai. One person will be permitted for direct investment of every 50 thousand US$.
Chapter IV Land UseArticle 22:A foreign investment enterprise can obtain land-use right according to related Chinese regulations. If the enterprise has difficulty in paying the land use fee for industry, storage and infrastructure construction projects, it can sign a contract for payment by installments with the land administration department after being approved by Beihai City Government. It can pay the remaining fees within four to five years after paying the cost for making a requisition for land and land administration or the land administration department buy a share by using the related fee excluding the cost for making a requisition for land and land administration on behalf of Beihai City Government after negotiation.
Article 23:Foreign investment enterprises, which invest in large and middle size projects, technology-intensive and capital-intensive projects and good agricultural projects, will enjoy preferential policies on the transfer price for land use right.
Article 24:The beach and sea area necessary for the construction of port, wharf and sea communication and transport facilities shall be provided by transfer and leasing. If there is a need for people in this area to remove, the land use unit shall pay compensation fee.
Chapter V Others
Article 25:Foreign investors are encouraged to invest in projects related to agricultural development, transportation, energy, advanced technology, processing products for export and technical innovation. Foreign investors are welcome to invest in other industries as well. But if foreign investors want to invest in finance, wholesale, retail and foreign trade which are restricted by the state, it needs to be reported to the state authorities concerned for approval.
Article 26:A foreign investment enterprise can apply for a loan in the bank it opened an account after paying all registered capital. A foreign investor, who has established three or more foreign investment enterprises engaged in production or infrastructure construction in Beihai city proper an has actually paid more than 30 million US$ of the registered capital, shall be encouraged and assisted to establish investment enterprises in Beihai after being approved by the authorities concerned.
Article 27:A foreign investment enterprise, which can balance foreign exchange by itself, can increase the portion of domestic sales for export products, except those restricted by the state for export.
Article 28:To simplify the application procedures for setting up a foreign investment enterprise project encouraged by the state, if the total investment is less than one million US$ ( excluding the expense for making a requisition for land), or if the total investment is less than 500 thousand US$ (excluding special and exclusive businesses and projects restricted by the state and who cannot and feasibility study do not need to be reported for approval after being checked and for record. For a new foreign investment enterprise, the Foreign Trade & Economic Cooperation Bureau and the Industrial & Commercial Administration Bureau will issue the approval certificates and the business licence within five working days after receiving all application documents. The departments of tax, bank, planning, land, construction and Beihai Customs will cooperate with the relevant procedures within the set time limit.
Article 29:Other items not stipulated in these regulations will be implemented according to the related Chinese laws and regulations. The former regulations different from these regulations all accord with these regulations.
Article 30:Beihai Foreign Trade & Economic Cooperation Bureau is responsible for the explanation of these regulations.
Article 31:These regulations come into force on the date of promulgation
Preferential Policies Towards Weizhou Island
Weizhou Island enjoys special policies promulgated by the State Council and Guangxi Zhuang Minority Autonomous Region besides the preferential policies towards Beihai city.
"Essentials of the plan for the provinces in the south & southwest of China " worked out by the State Planning Commission was approved in Document No.56 promulgated by the State Council in 1993. It puts forward the following:
Sanya,Jinghong and Weizhou Island can be developed into special and comprehensive tourist-amusement centers which only serve tourists who come from foreign countries, Hongkong , Macao and Taiwan through leasing land and international advantages. Under the conditions of perfect facilities, these three places will be approved to state tourist vacation zones and enjoy relevant preferential policies approved by the state.
Weizhou Island became a provincial tourist vacation zone approved in Document No.84 promulgated by Guangxi Zhuang Minority Autonomous Region in 1995. The document pointed out that Beihai Weizhou Island Tourist Vacation Zone, which is connected with Beihai Silver Beach State Vacation Zone, has subtropical natural scenery typical of South Asia along with features of a volcanic island. Weizhou Island attracts overseas and domestic tourists and investors with its special and rich tourist resources. In order to develop and utilize the tourist resources of Weizhou Island , promote the development of tourism in Beihai, Weizhou Island was approved to be an autonomous region tourist vacation zone.
The overall plan for Weizhou Island Tourist Vacation Zone was appraised and approved by experts and authorities concerned. The infrastructure construction of Weizhou Island Tourist Vacation Zone should be organized and carried out according to the overall development plan. The development, construction and administration of Weizhou Island Tourist Vacation Zone should be carried out according to Document No.56 promulgated by the State Council in 1993 and Document No.104 promulgated by Guanxi Zhuang Minority Autonomous Region Government in 1994. In order to build Weizhou Island into a comprehensive tourist vacation zone with special functions for tourists who come from foreign countries, Hongkong , Macao and Taiwan , the relevant departments of Guangxi Zhuang Minority Autonomous Region will support the development of the Zone.
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