Provisions of Hefei Municipality on Further Encouraging Foreign Investment and Accelerating the Utilization of Foreign Capital

Issued by: Hefei Municipal People's Government

In order to further encourage foreign investment, improve the opening-up and economic development level of our city, vigorously develop pillar industries and increase the total economic output of our city, these Provisions are formulated in accordance with the relevant national policies and regulations and the actual situation of our city.

article 1 continue to implement the existing policies and regulations of the state and province to encourage foreign investment and accelerate the utilization of foreign capital in our city and the decision of Hefei municipal people's government on accelerating the construction and development of development zones (Hezheng [1998] No.15).

article 2 foreign investors are encouraged to invest and set up advanced technology enterprises and product export enterprises. The establishment of the above-mentioned enterprises, in addition to enjoying the preferential policies of the state for income tax reduction and exemption, will be fully returned to the municipal financial revenue by the municipal financial department after the enterprise pays taxes during the period of halving the tax.

article 3 foreign investors are encouraged to invest in the construction of infrastructure such as transportation, energy, ports, water conservancy and environmental protection. For foreign-invested enterprises engaged in transportation, energy and port construction, in addition to enjoying the relevant policies of the state, during the period of tax reduction by half, after the enterprise pays taxes, the municipal finance department will return all the municipal fiscal revenue by presenting the warehousing tax bill. For foreign-invested enterprises engaged in water conservancy, environmental protection and other infrastructure construction, upon approval, the enterprise income tax will be levied first and then refunded from the profit-making year. After the enterprise pays taxes, the municipal finance department will return all the municipal fiscal revenue in the first five years with the warehousing tax bill, and return it in half in the next five years.

article 4 foreign investors are encouraged to invest in key industrial projects. If the total investment is more than 1 million US dollars and the operating period is more than 1 years, it shall be examined and confirmed by the relevant government departments and implemented according to the second policy. Foreign investors who invest in the above-mentioned industrial projects and meet the requirements are allowed to accelerate the depreciation of their fixed assets with the approval of the relevant departments. The financial sector will give appropriate support to short-term working capital loans based on the principle of giving priority to support.

for major projects of pillar industries specially encouraged by foreign investors in our city, if the operation period is more than 1 years, with the approval of the municipal government, appropriate preferential treatment will be given to the local retained part of the value-added tax.

article 5 encourages foreign investors to buy bankrupt enterprises. Foreign investors who buy bankrupt enterprises as a whole will continue to enjoy the relevant policies of the municipal government's Several Opinions on Encouraging the Purchase of Bankrupt Enterprises (Hezheng [1996] No.27). For the new enterprises established to resettle the employees of bankrupt enterprises, they enjoy the relevant preferential policies of the municipal government for re-employment. At the same time, within 3 years, all construction fees will be exempted.

article 6 foreign investors are encouraged to invest in large-scale projects of more than 1 million dollars (including 1 million dollars). The construction land of the project, after approval, allows investors to pay the land transfer fee in installments within 2 years.

article 7 encourages foreign investors to invest in establishing modern agriculture. If the operating period is more than 1 years, the second policy shall apply mutatis mutandis. Projects that invest in "two high and one excellent" agriculture and foreign exchange-earning tourism agriculture in our city are exempted from agricultural specialty tax for three years. For agricultural development projects that introduce high technology, in addition to land leasing, with the approval of the municipal government, the relevant land supporting fees can be exempted, and land leasing can also be adopted according to law.

article 8 for foreign investors to invest in the above-mentioned areas encouraged by our city, according to the specific conditions of the project, for every 5, US dollars actually invested by foreign investors, they can apply for one urban hukou for their immediate family members in their investment places, but the number of urban hukou for each investor shall not exceed 5 at most.

article 9 we will continue to improve the co-location system for the examination and approval of foreign-funded projects and service management. The office of the joint office is located in the Municipal Foreign Investment Office, which adopts a regular centralized approach. The approval of specific projects is led by the Municipal Foreign Investment Office, and all relevant departments handle it according to the division of labor. All the constituent units of the joint office should take the overall situation into account and adhere to the procedures of one window for foreign affairs and one dragon for examination and approval. Major foreign investment projects, led by the Municipal Foreign Investment Office, set up a project team to do a good job in coordination and tracking services; For general projects, it is also necessary to identify a special person to provide services for foreign investment from project negotiation and approval to the whole process after the establishment of the enterprise.

each development zone can also establish a joint office system for the examination and approval of foreign-funded projects and service management according to the practice of the city.

article 1 in order to support the development of foreign-invested enterprises, combined with the industrial economic development of our city, the municipal finance will invest a certain amount of money to establish relevant funds respectively. Foreign-invested enterprises that meet the requirements are regarded as state-owned enterprises and can declare the use of funds.

article 11 encourages foreign-invested enterprises to develop and strengthen, and establishes awards for large profits and taxes of foreign-invested enterprises. For foreign-invested enterprises that have paid taxes in the top three in the city for two consecutive years, the municipal government awarded the title of star foreign-invested enterprise, giving priority to providing loans and exempting construction fees within three years.

article 12 all relevant departments shall provide timely and sufficient water, electricity, gas, transportation and communication required by the construction and production of foreign-invested enterprises, and the charging standards shall be the same as those of other enterprises. The payment standards for accommodation, medical treatment, shopping, tourism, entertainment, children's schooling, transportation and other aspects employed by foreign investors and overseas employees of foreign-invested enterprises in our city are the same as those of residents in this city.

Article 13 When a foreign-invested enterprise obtains the land use right according to law, it will charge municipal infrastructure supporting fees, termite control fees, design and construction quality supervision fees, foreign survey and design fees, new wall materials development funds and other fees at half; For the construction of productive factory buildings, municipal infrastructure supporting fees, termite control fees, field survey and design fees, and new wall materials development funds will be exempted, and the design and construction quality supervision fees will be charged by half.

article 14 regulates the extra-tax charges for foreign-invested enterprises. Foreign-invested enterprises shall be subject to the system of charging license and charging registration card, and foreign investors shall have the right to refuse to pay for the charging items that have not been produced and registered, and may complain to the relevant municipal departments. On this basis, create conditions and gradually move towards standardized fees.

article 15 strengthen services to foreign-invested enterprises, strive to create a good soft investment environment, and promote foreign-invested enterprises to operate according to law. All relevant departments should actively do a good job in providing services to foreign-invested enterprises and help them solve the difficulties encountered in the process of production and operation. Standardize the inspection of foreign-invested enterprises, and all law enforcement agencies cannot set reasons or legal procedures, and may not conduct surprise inspections of foreign-invested enterprises. It is necessary to give full play to the role of the foreign complaint center, and coordinate and handle foreign complaints in a timely manner.

article 16 in accordance with the principle of "whoever attracts investment benefits", fully mobilize the enthusiasm of the whole city for attracting investment. All Chinese-foreign joint ventures and cooperative enterprises invested by enterprises and institutions in the districts and development zones, or wholly foreign-owned enterprises introduced by the districts and development zones, shall be paid taxes and returned to the finance of the districts or development zones.

article 17 encourages people from all walks of life to actively introduce foreign-invested projects and rewards those who introduce them. The bonus standard is 1 ‰ ~ 5 ‰ of the actually invested foreign capital.

the government at the same level responsible for collecting the tax on the referral project shall be responsible for rewarding the introducer. At the same time, by the municipal finance investment funds, the establishment of the city investment incentive fund, earmarked for the reward of the municipal finance to benefit the introducer.

article 18 the foreign-invested enterprises approved since the promulgation of these regulations shall implement these regulations. Overseas Chinese and compatriots from Hong Kong, Macao and Taiwan who set up joint ventures, cooperative ventures and wholly-owned enterprises in this Municipality shall be governed by these Provisions.

article 19 these provisions shall be implemented as of the date of promulgation. Prior to this, the policies on encouraging foreign investment issued by this Municipality, which are inconsistent with these Provisions, shall prevail.

Article 2 The Municipal Foreign Investment Office shall be responsible for the interpretation of these Provisions.

Hefei Municipal People's Government