Chongqing
BIZCHINA / Policies
Newly Released Incentive Provisions for Encouraging Foreign Investment
in Chongqing
(investcq.gov.cn)
Updated: 2006-05-17 10:48
Chapter 1 Taxation
Article 1
For sectors, which are encouraged by the state to receive foreign
investment, only 15% of the corporate income tax may be levied for 3
years following the expiration of the currently stipulated tax exemption
period.
Article 2
The income tax imposed on the incomes from technical transfer,R & D,
consultancies, technical service of foreign-invested enterprises, R & D
institutions or foreign individuals can be exempted, subject to the
approval of the State Taxation Bureau, Income tax can be levied at 10% of
the normal rate on the incomes of foreign enterprises from their
provision of patent technology covering areas of R & D, energy
development, traffic development, agriculture, forestry, husbandry and
rest of important technical development, and may even be exempted for
those with favorable conditions or those which have advanced technology,
subject to the approval of the State Taxation bureau.
Article 3
In case that R & D expenses of foreign-invested enterprises increase by
over 10%(inclusive of 10%)of the same of last year, 50% of the actually
incurred R & D expenses of a same year is allowed to off-set the
corporate income tax of the year, subject to the approval of taxation
authorities.
Article 4
In case that a foreign-invested enterprise, within its total volume of
investment purchases Chinese made equipment and in case that such
equivalent equipment will be also duty free if imported, the total VAT
associated with such a Chinese made equipment shall be returned, and an
off-set to corporate income tax shall also be effected.
Article 5
Preferential deed taxes available for local employees shall also apply to
foreign-invested enterprises in the event of their purchase of houses for
employees.
Article 6
Preferential tax exemptions as stipulated Chongqing's Preferential
Policies for Encouraging Employments shall also apply to foreign-invested
enterprises recruiting local laid-off workers or the unemployed for a
period of 3 years, according to the employed numbers.
Chapter 2 Financial Management
Article 7
In the event of a foreign-invested enterprise seeking financing support,
foreign shareholders guarantee can accepted by Chinese commercial banks,
loans in RMB can be extended by designated Chinese commercial banks
handling foreign currencies to foreign-invested enterprises upon mortgage
in foreign curreney.
Article 8
A foreign-invested enterprise is allowed to mortgage its overseas assets
in the overseas branches of Chinese commercial banks in PRC, and the loan
shall be provided by Chinese commercial banks inside PRC or their
overseas branches.
Article 9
Qualified foreign-invested enterprises are allowed to issue stock A or
stock B.
Article 10
Foreign investment in energy and traffic sectors as encouraged by the
state may be provided with performance insurance and guarantee insurance
on a positive and prudent basis.
Article 11
Restrictions on foreign currencies of foreign-invested enterprises
resulting from non-trading shall be relaxed.
Article 12
Special Foreign & Economy loans available for state-owned foreign trade
companies shall be extended properly to cover foreign-invested enterprise
to enable more export.
Chapter 3 Land and Housing
Article 13
Foreign-invested enterprises that obtain the land-use right on a let out
basis is free of land-use fee.
Article 14
70% of the first 5 years rent can be returned to the foreign-invested
enterprises that have obtained the land-use right on a rent basis.
Article15
In the event of a merge or take-over of state-owned enterprises by
foreign-invested enterprises and on condition that the employees of the
state-owned enterprises are properly settled,the applicable incentive
policies to restructuring of state-owned enterprises shall also apply to
foreign-invested enterprises in addition to the favors given to the
land-use.
Article 16
Land-use fees shall be exempted for foreign-invested enterprises
participating in economical residential constructions.
Article 17
50%or 100% of the land-use fees paid by the foreign-invested enterprises
that have entered Chongqing Top 50 Enterprises may be returned for the
same year, subject to the approval of municipal government.
Article 18
Land may be arranged by Chongqing Economic & Technical Development Zone
and Chongqing High & New Technology Development Zone for those
foreign-invested enterprises that are located inside the zones covering
public utilities and the state encouraged sectors.
Chapter 4 Import & Export
Article 19
Advantageous projects of Chongqing with foreign investment as approved by
the state will enjoy the preferential policies as defined in A Guided
Catalogue of Sectors for Foreign Investment. For such project, import of
equipment for their own use, accessories and spare parts which are not
available in PRC or which do not have the required technical specifica
shall be duty and VAT free.
Article 20
For already established foreign-invested enterprises which are in the
Encouraged Project or in Restricted Project Grade 2, R & D centers,
advanced technology-oriented enterprises and export-oriented
enterprises,import of equipment auessories and spare parts which are not
available in PRC or which do not have the required technical
specifications shall be duty and VAT free provided that the import is for
the purpose of technical renovations in line with their approved scope of
business.
Article 21
R & D organizations set up by foreign-invested enterprises are allowed to
import within their total investment volume equipment, technology
accessories and spare parts which are not available in PRC or which do
not have the required technical specifications on a duty and VAT free
basis.
Chapter 5Means of Investment & SAIC Registration
Article 22
In case that a domestic enterprise is taken over by foreign companies and
the name of the taken enterprise is required to stay the same, the
registration authority will direct handle the procedure of the enterprise
being changed from domestic nature to a foreign-invested nature.
Article 23
Qualified Chinese individuals are allowed to join in the joint ventures
or co-operative ventures.
Article 24
The maximum amount of foreign investment that is made in manner of
technology may reach over 35% of the total registered capital, subject to
mutual consent and assessment of relevant authorities.
Article 25
Foreign enterprises investing in local state-owned enterprises shall
enjoy the preferential policies of both foreign-invested enterprises and
state-owned enterprises, Chinese partners are allowed to use their
premises, buildings equipment, intellectual property, materials and their
own capitals, as well as the designated financing for technical
renovation as means of investmetn.
Chapter 6 Charges
Article 26
The transport, accommodation, medical treatment, schooling ,tourist and
shopping of foreigners in Chongqing are all as same as Chinese citizens.
Article 27
In case that foreign-invested enterprises would need country side
collective owned land for construction of high-tech, infrastructure and
public utility projects inside Chongqing Economic & Technical Development
Zone and Chongqing High & New Technology Zone, the Extra charge on road
construction may be exempted subject to the approval of Chongqing
Government.
Article 28
Foreign-invested educational organizations and internation al shools in
Chongqing shall enjoy the same preferential policies applicable to local
schools, their schooling charges are to be made according to their own
cost of running ,all fees are exempted.
Chapter 7 Exit & Entrance
Article 29
Foreigners, HK Macao and Taiwan Patriots who are in Chongqing for
investment and business including their family members may obtain a
residence card or visa that is valid between 1-5 years.
Article 30
Foreigners with tourist visa who are visiting Chongqing for investment,
technial & cultural exchanges or who are recruited as senior managers
will be allowed for change of visa.
Article 31
Foreigners working in state-owned enterprises and foreign-invested
enterprises will be allowed for a 1-year multiple re-entry visa if agreed
by the enterprises the applicant is working for.
Article 32
On special cases foreigners without a visa entering China via Chongqing
Jangbei Int��s Airport for business, technical & cultural exchanges are
allowed for a visa upon arrival within Chongqing��s scope of authority.
Article 33
Foreigners who have made special contributions to Chongqing may be given
a permanent residential right, enabling them to be free of extensions or
verifications for their stay in China, they are entitled to apply for a
5-year valid multiple visa and their family members may also be allowed
to stay in Chongqing with them.
Article 34
Taiwan patriots who are investing in Chongqing and the senior managers
who are working in Chongqing are allowed for a multiple visa or longer
stay provided that their traveling passport are valid.
Chapter 8 & Miscellaneous
Article 35
Project with investment of foreign-invested enterprises shall be treated
as foreign-invested enterprises if the investment reaches over 25%.
Article 36
Foreign-invested enterprise in coastal areas is allowed to come to
operate foreign-invested enterprises and domestic enterprises in
Chongqing on a contracting basis.
Article 37
Sectors for foreign investment, conditions for setting up foreign
enterprises and proportion of foreign investment in foreign-invested
enterprise shall be further relaxed, details to be publicized later.
Article 38
Trials for foreign investment shall be made in the service sectors or
intermediary agencies in the areas of finance, commerce, insurance,
telecom, foreign trade, transport, tourism, education hospital,
accreditation and inspection authorities.
Article 39
Project which is encouraged for foreign investment and which does not
need general considerations and co-ordinations to the state can be
approved by local government without restrictions of the total investment
volume.
Article 40
The Exit & Entrance Inspection Authorities shall stop inspections,
evaluations of the equipment imported by wholly foreign-owned
enterprises,a record system shall be implemented instead, no compulsory
inspections shall be imposed on the evaluations.
Article 41
In case that a technical achivement brought in by foreign investors is
effectively utilized in Chongqing and proved to be of significance to the
development of Chongqing, special discounted financing support shall be
provided and the foreign investors who have contributed to this
achievement will be awarded with a title of "onored citizen of
Chongqings'y Chongqing Government according to law."
Article 42
Place of accommodation for foreigners will be just approved once being
recorded instead of the past rules that such places would be strictly
assessed before operations.
Article 43
Correspongding preferential policies shall be applied to foreign-invested
enterprises whose manufacturing is located outside of Economic &
Technical Development Zone for better utilization of resources while
their assembly, sales, registration and tax paying happen inside the
zones.
Article 44
Vehicles registrations shall be administered separately for foreign
representation offices, foreign-invested enterprises,as well as units
outside of Chongqing, A separate service counter shall be set up
respectively in Chongqing Vehicle
Administration Office, Wanzhou Vehicle Administration Office. Qianjiang
Vehicle Administration Office, Fuling Vehicle Administration Office, as
well as the rest of branch offices.
Registrations shall be dealt with in a responsible manner and be
completed at once if the documentation of the applicant is complete and
corrtect.
Article 45
The above incentive provisions come to effect from 1 July 2000, and is
governed by the state laws.
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