| Soft environment for investment in Henan |
| Wednesday,April 29,2009 Posted: 10:41 BJT(0241 GMT) Expo Central China 2009 |
Main Preferential Policies for Foreign Invested Enterprises in Henan Province 1.The equipments imported for the projects falling into Catalogue of Encouraged Foreign Investment Industries in Catalogue for Guidance of Foreign Investment Industries shall be exempted from the tariff. 2.The equipments imported for the projects falling into Henan Part of Catalogue of Competitive Industries in Western and Middle Areas in China shall be exempted from the tariff. 3.The incomes generated from the projects listed below shall be subject to the exemption of enterprises income tax. (1) The planting of vegetables, grains, tuber crops, oil bearing plant, legume, cotton, fiber crops, sugar yielding crop, fruits, nuts; (2) The cultivation of new varieties of crops; (3) The cultivation of Chinese traditional medicine; (4) The cultivation and planting of forest trees; (5) The raising of livestock and poultry; (6) The collecting of forest products; (7) The following projects in service industries for agriculture, husbandry and fishing: Irrigation, preliminary processing of agriculture products, veterinary, promotion of agriculture technique, farm machine operation and maintenance; (8) Offshore Fishing. 4. The income generated from projects listed below shall be subject to the reduced half enterprise income tax. (1) Flowers, teas and other crops for beverage or species production; (2) Mari culture and inland aquatic farming. 5. The incomes from the investment in port, airport, railway, road, urban public transport, electric power, water conservancy shall be subject to the exemption of enterprise income tax from the first through the third profit year, and be subject to the reduced 50% enterprise income tax from the fourth through the sixth year. 6.The projects meeting given requirement for environmental protection, water saving and energy saving, including public sewage disposal, garbage disposal, comprehensive utility of methane, technological innovation for energy saving and pollution reducing, and seawater desalination, shall be subject to the exemption of enterprise income tax from the first through the third profit year, and be subject to the reduced 50% enterprise income tax from the fourth through the sixth year. 7.The technology transfer meeting given requirements shall be exempted from the enterprises income tax. 8.The small and low profit enterprises meeting given requirements shall be subject to the reduced 20% enterprise income tax. 9.The high-new technology supported by the state shall be subject to the reduced 15% enterprise income tax. 10.The following incomes shall be free of tax. (1) The interest of national debt; (2) The dividend, bonus of capital investment between the resident enterprises; (3) The dividend, bonus from established offices of non-resident enterprises in China paid by resident enterprises; (4) The income of non-profit institutions 11.The expense listed below is deductible from the taxable income. (1) The R&D expenditure of new technology, new product and new processing techniques; (2) The wages and salaries paid to the disabled and other employees recruited in compliance with the state’s encouraged placement policies; (3) The given proportion of the venture capital supported and encouraged by the state. Venture Capital which invests by equity in the unlisted small and medium-sized high-tech enterprises more than 2 years is deductible from the taxable income in accordance with 70% of its investment while holding of the equity over 2 years. If insufficient, the deduction can be carried forward in subsequent annual tax. (4) If needed, the reduced appreciation years or accelerated depreciation method shall be adopted for the calculation of the fixed asset depreciation due to the technology progress; (5) The income from certain products supported by the state’s industry policies, which are manufactured by utilizing the comprehensive resources; (6) The proportion of investment on the specialized equipments for environment protection, energy saving, water saving, or manufacturing security; 12.The software industry and integrated circuit industry preferential tax policies. New establishment software enterprises in China, after the identification and designation, shall be subject to the exemption of enterprise income tax from the first through the second profit year, and be subject to the reduced 50% enterprise income tax from the third through the fifth year. IC design enterprises as software enterprises enjoy the same preferential tax policy; 13.The investment in counties listed below in Henan Province shall enjoy the related preferential policies same as those for the Great Western Development: Qi County, Tongxu County, Lankao County, Luanchuan County, Song County, Ruyang County, Yiyang County, Luoning County, Ye County, Lushan County, Jia county, Hua County, Neihuang County, Linzhou County, Yuanyang County, Fengqiu County, Nanle County, Fan County, Taiqian County, Puyang County, Wuyang County, Lushi County, Nanzhao County, Xichuan County, Sheqi County, Tongbai County, Minquan County, Sui County, Ningling County, Tuocheng County, Yu County, Xiayi County, Yongcheng City, Luoshan County, Guangshan County, Xin County, Shangcheng County, Gushi County, Huaibin County, Xi County, Fugou County, Shangshui County, Shenqiu County, Dancheng County, Huaiyang County, Taikang County, Luyi County, Shangcai County, Pingyu County, Zhengyang County, Queshan County, Miyang County, Runan County, Xincai County. 14.The investment in Zhengzhou City, Luoyang City, Jiaozuo City, Pingdingshan City and Kaifeng City shall enjoy the relevant preferential policies same as those for the development of old industry bases in Northeast promulgated by the state. 15.Where the aggregate foreign investment of single project in circular economy, comprehensive utilization of resources, high-tech industries, modern agriculture, modern services and environmental protection projects is at or above 10 million U.S. dollars, or that of single project in deep processing of agricultural products is at or above 5 million U.S. dollars, the local finance will, in accordance with the enterprises’ financial contribution to the local finance, award appropriate reward within 3 years since the enterprises have got operating profit. 16 Where a foreign-invested enterprise is invested in projects of encouraged category with a registered capital of above 10 million U.S. dollars, the industrial and commercial registration fees and examination fees during its establishment will be subsidized in full by the local finance. 17.Award project funding for major attracting investment projects successfully introduced. Where the actual amount in place is above 100 million U.S. dollars for a single project of major projects successfully introduced, the provincial government will award a project funding of 0.5 million RMB; and award a project funding of 1 million RMB for the major project with an actual amount in place of above 200 billion U.S. dollars; and for major project with such an amount of above 500 million U.S. dollars the provincial government will award a funding of 5 million RMB to 10 million RMB, to cover pre-investment expenditures. Major investment project from outside the province will be funded by reference to funding standards for foreign investment. Unless otherwise specified by the country, no investment proportion or operating life is limited where the foreign investment is invested in large and medium-sized public facility construction project. Where the foreign investment is invested in drainage, waste disposal, sewage treatment and such other environmental protection and public welfare projects, and the charge standards are not yet in place, the local government may give subsidies in appropriate manner. 18. Actively attract multinational companies to set up R & D institutions in our province. For certified national and provincial R & D institutions, a lump sum as project funding of 2 million RMB and 1 million RMB will be awarded respectively. |
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