Provisions of Yunnan Province on Encouraging Foreign Investment

Article 1 In order to further improve the investment environment and encourage foreign companies, enterprises and other economic organizations or individuals (hereinafter referred to as foreign businessmen) to invest in Yunnan Province, these Provisions are formulated in accordance with the relevant laws and administrative regulations of the state and the actual situation of Yunnan Province. Article 2 Foreign investors investing in Yunnan Province can enjoy other preferential treatment besides the preferential treatment stipulated by the state, and their legitimate rights and interests are protected by law. Article 3 Yunnan Province encourages foreign businessmen to invest and set up enterprises in all parts of the province. The State Council approved Kunming to implement the coastal open city policy, and Ruili City, Wan Ding City and Hekou County were approved as border economic open cities. Foreign investors who invest in Kunming and three cities with open borders can enjoy more preferential treatment stipulated by the state and the province. Article 4 "Yunnan Foreign Investment Management Service Center" will work together to provide efficient management services for foreign investment. Give approval or reply to the declared project within twenty days from the date of acceptance. Article 5 If the productive projects encouraged and allowed by foreign investment in the Catalogue of Foreign Investment and Investment Promotion published by the state and the province comply with laws and administrative regulations, the funds will be settled by themselves, the foreign exchange will be balanced by themselves, and the construction conditions and production conditions will be matched by themselves. If the import of raw materials and export products do not involve quotas and licenses, Queensland enjoys provincial treatment, and each state (city) exercises it within100000 USD, and Ruili and Wan Ding implement it. The provincial foreign investment management service center shall issue the approval certificate with the approval document. Article 6 Foreign investors may invest in the following ways:

(a) the establishment of Chinese-foreign joint ventures, Chinese-foreign cooperative ventures and foreign-funded enterprises;

(2) Foreign investors who invest in existing enterprises by contracting, leasing or capital participation, and the amount of foreign capital accounts for more than 25% of the total assets of existing enterprises, can enjoy preferential treatment for foreign-invested enterprises and implement the management mode of foreign-invested enterprises.

(three) foreign investment in existing enterprise technological transformation projects, foreign investment reached a certain proportion of the total investment in transformation projects, approved to enjoy some preferential treatment of foreign-invested enterprises. Article 7 Foreign-invested projects in the following fields, such as projects that conform to the national industrial policy, technology-intensive projects and projects with large investment and long payback period, shall be subject to enterprise income tax at a reduced rate of 15% upon approval, and shall be exempted from urban property tax.

(a) roads, bridges, aviation, railways, water supply, power supply and other infrastructure construction;

(2) Deep processing of phosphorus, rubber, steel and nonferrous metals, trees, spices, leather and fruits;

(3) High-tech industries;

(4) Agriculture, forestry, animal husbandry and aquaculture. Article 8 Chinese-foreign joint ventures and Chinese-foreign cooperation are allowed to obtain land use rights in Kunming according to law, invest in land development, run real estate industry and participate in the transformation of old cities; Allow Sino-foreign joint ventures and Sino-foreign cooperation to obtain land use rights in the border economic cooperation zones approved by the state in Ruili City, Wan Ding City and Hekou County, and invest in land development and real estate; If all the projects invested by foreign investors reach a certain scale, they can invest in land development and real estate business in the above areas after approval. Real estate and other facilities invested and developed by foreign investors can be transferred, leased, mortgaged and inherited according to law. Article 9 Foreign businessmen are allowed to set up the tertiary industry. With the approval of the provincial government, foreign-invested enterprises can be established in tourism services, information, consulting, advertising, design, entertainment, freight, accounting, lawyers, education, medical care and other industries. With the approval of the state, foreign businessmen are allowed to build hotels in tourist hot spots lacking tourist facilities, and try out commercial retail enterprises, financial institutions and trading enterprises in Kunming. Article 10 In order to encourage foreign investment, the following tax policies shall be implemented:

(1) Foreign-invested enterprises in Yunnan Province are exempt from local income tax;

(2) Productive enterprises with an operating period of more than 10 years may, upon approval, reduce the tax payable by 15% to 30% in the next 10 years, except that the enterprise income tax shall be exempted in the first two years and halved in the third to fifth years according to state regulations;

(3) Export-oriented enterprises, advanced technology-oriented enterprises and production-oriented foreign-invested enterprises in economic and technological development zones, high-tech development zones, tourist resorts and border cooperation zones approved by the state shall be exempted from property tax and vehicle and vessel license tax within four years from the operating year;

(4) Productive foreign-invested enterprises established in Kunming shall be subject to enterprise income tax at a reduced rate of 24%; Foreign-invested enterprises in high-tech development zones approved by the state and productive foreign-invested enterprises in foreign economic and technological development zones are subject to enterprise income tax at a reduced rate of 15%;

(5) Enterprises with foreign investment in Ruili, Wan Ding and Hekou, three cities with open borders, shall be subject to enterprise income tax at a reduced rate of 24%. Article 11 Land use:

(1) Foreign-invested enterprises and non-profit undertakings such as education, culture, health and scientific research that fall within the scope of Article 7 of these Provisions may obtain the land use right by way of transfer at preferential prices, and the transfer fee shall be appropriately reduced or exempted according to the specific conditions of the project; After approval, the land use right can also be obtained through administrative allocation, and the enterprise using the land shall pay the site use fee year by year according to the regulations; Where the land development fee has been paid in one lump sum (including land acquisition, demolition, infrastructure and other expenses), or the land is developed by the enterprise itself, the land use fee shall be exempted;

(two) to obtain the land use right by means of transfer, according to the different purposes stipulated in the Interim Regulations on the Transfer and Transfer of Urban Land Use Rights in People's Republic of China (PRC), the maximum service life of the land use right is 40 years, 50 years and 70 years respectively, and the transfer period can be extended; If a foreign-invested enterprise applies for shortening the land use period, the transfer fee may be reduced or exempted accordingly;

(3) Productive foreign-invested enterprises that do not fall within the scope of Article 7 of these Provisions, and enterprises that have obtained land use rights by administrative allocation, paid land development fees in one lump sum or developed land by themselves, shall be exempted from land use fees from the first year to the fifth year, and levied at a half rate from the sixth year to the tenth year; Enterprises invested by compatriots from Hong Kong, Macao and Taiwan and overseas Chinese who have obtained land use rights by means of transfer shall be given preferential transfer fees;

(4) Simplify the procedures for applying for land. At the initial stage of project negotiation, the project unit can go through the appointment formalities with the local municipal and county people's governments and relevant regulations in advance, sign the land use right transfer contract or land use contract within 30 days after the enterprise obtains the business license, register the land according to law, and issue the land use certificate.