Preferential Policies in Gaoyou, Jiangsu

In order to ensure that the foreign investment in Gaoyou is reliable and profitable. Our city will fully carry out the preferential policies stipulated by the state and the province and in the same time implement the preferential treatments in the other regions equal to our city as well.
Land Use
1.	The newly-built foreign-owned productive enterprises which obtain land-use right by transferring the state-owned 1and can be exempted from the net transfer expense for industrial land. The land supp1y can adopt transfer or lease.
2.	The foreign-owned enterprises can apply for the land right certificate after paying a considerable sum of transfer expense. They start to construct before paying the left-over sum by installments and can rent land before transfer.
3.	Those who invest in the productive enterprises and obtain the land use right by leasing the collective land can rent the land from the villages and groups. The rents within 3 years are as follows: Duty farmland: 300 Yuan RMB/mu.year; Private plot: 600 Yuan RMB / mu.yea1; Ration farmland: 900 Yuan RMB / mu.year. 3 years hereafter. The rents will be adjusted according to the price rising.
4.	For the investors with fixed investment capital of over 50 million Yuan RMB or the foreign investors who directly invest in the productive projects infrastructure projects with the fixed capital of over 5 million Yuan RMB, the government will give special policy.
Stipulated Construction Fees
1.	Those newly-bui1t foreign-funded productive enterprises shall enjoy exemption from urban infrastructure; supporting fee, wall rebuilt fee, expenses for making city green, fee for bulk of cement and civil air defense building expenses.
2.	For intermediary service, the relevant intermediary organization chosen by a foreign-funded enterprise shall provide a paid service. An intermediary service agency inside the city should charge half price for the foreign-funded enterprise.
3.	The investment in the urban construction (including real estate development, old rebuilt, urban infrastructure ) shall be implemented according the temporary provisions for preferential treatments for investment in urban construction in Gaoyou"(YZF No.2002-231), "The Gaoyou city government's opinions on further flourishing the real estate of the city"(YZF No.2002-9 ), "The items and payment standard of urban construction in Gaoyou".
Taxation Awards
l.	Those newly-built foreign-funded productive enterprises which have been in operation for l0 years or more shall enjoy the following preferential treatments in value-added tax controlled by local financial dept shall be given to those foreign-funded productive enterprises in the first year, 30% in the second year and 20% in the third year, and an award of 80% shall be given to those foreign-funded enterprises whose projects are encouraged by our country or whose investment is over 5 million USD in the first year, 50% in the second year and 30% in the third year. These awards shall be paid respectivc1y in the next year.
2.	Any productive enterprises of foreign investor intended to conduct business for over 10 years shall, from its first profit-making year, be entitled to three year's income tax exemption adjoining four year's 50% reduction and may enjoy its local financial incentive for the part exceeding "two year's income tax exemption adjoining three year's 50% reduction" stipu1ated by the State Council. To those enterprises whose export production attain 70%, the 50% reduction sha1l be applicable. To those enterprises approved as provincial advanced technological enterprises shall be entitled to another three year’s 50% reduction. During the period of implementing 50% reduction, the income tax shall be imposed at the rate of l0%, while after expiration of 50% reduction the income tax shall be imposed at the rate of l5 %.
3.	The new-built foreign funded productive enterprises shall enjoy exemption from urban maintenance and construction tax, expansion funds for local undertakings. educational expense extra, grain risk funds and flood control funds and other stipulation fees.
Intermediary Awards
To any individual or organization who introduces the foreign investment in productive enterprises with fixed investment of over 50 million Yuan RMB. We will give award of 5%-10% of the actual investment capital according to(YZF No.2003-22).Those special and important enterprises which are engaged in such projects as high and new technology, infrastructure, energy, communications, agricultural development. purchasing and merging the enterprises inside Gaoyou and have invested over 5 million USD can obtain the special favorable policy according to the investors’concrete conditions and requirements.