Provisions of Fuzhou Municipal Committee of the Communist Party of China and Fuzhou Municipal People's Government on Further Encouraging Foreign Investment

Article 1 Foreign-invested productive enterprises whose operating period exceeds 10 years shall be exempted from enterprise income tax from the first year to the second year. In the third to fifth years, the enterprise income tax will be halved. After the enterprise pays the income tax, the financial department will return all the income of the city with the tax receipt. From the sixth year to the tenth year, the income tax paid by the enterprise shall be returned by the financial department with the tax receipt, and the return ratio shall be 50% of the municipal fiscal revenue. Article 2 Foreign investors who invest in electric power, ports, docks, roads, bridges and other infrastructure for more than 15 years shall be exempted from enterprise income tax from the first year to the fifth year, and the enterprise income tax shall be halved from the sixth year to the tenth year. Article 3 Foreign-invested key enterprises in pillar industries and key industries such as petrochemicals, machinery and electronics, building materials, forest products, aquaculture, textiles, etc., whose total investment exceeds 100000 US dollars (forest products and aquaculture are not limited in scale) and their operating period exceeds10 years, shall be exempted from enterprise income tax for the first two years from the profit-making year upon confirmation by the competent department of the industry; From the third year to the fifth year, the enterprise income tax will be levied by half, and all the tax receipts will be returned by the financial department after tax payment; The income tax paid from the sixth year to the tenth year shall be returned by the financial department according to 50% of the income tax paid by the warehousing tax bill. Foreign investors who invest in the above-mentioned pillars and key industries and meet the requirements are allowed to accelerate the depreciation of their fixed assets upon approval. Article 4 Foreign investors who invest in the development of agriculture and animal husbandry projects shall enjoy the preferential income tax policies stipulated in Article 3 above mutatis mutandis. Article 5. Foreign-invested high-tech enterprises, in addition to enjoying the preferential income tax policies stipulated in Article 3, the customs duties and import value-added tax paid by their imported technical equipment and enterprises belong to local fiscal revenue and shall be returned every year. Article 6 Foreign-invested enterprises can enjoy preferential land prices. Foreign-invested industrial enterprises in agriculture, infrastructure, high-tech, pillar industries and key industries will be appropriately reduced according to the national land policy and the benchmark land price 1996. With the approval of the Municipal Bureau of Land Management, investors are allowed to extend the payment period appropriately.

For projects that promote the development of high-tech agriculture, land supporting fees may be exempted after approval, or land transfer fees may be adopted.

Foreign investors investing in infrastructure, pillars and key industrial projects in Fuzhou are exempted from land use fees for five years after the application of enterprises and the approval of the Bureau of Land Management. Foreign businessmen can use barren hills, beaches and wasteland to invest in various projects, and their land prices can be given greater concessions as appropriate. Article 7 Foreign-invested enterprises are encouraged to increase investment and expand production scale. Investors in industrial and agricultural productive projects who increase their investment and registered capital in the original enterprise can enjoy the original preferential treatment after the actual investment is increased. After the application of the enterprise and the approval of the tax authorities, the profits generated by the capital increase (referring to the part that can be accounted for separately) can be accounted for separately, and as part of the local fiscal revenue, they can enjoy the treatment of "full return in the first two years and 50% return in the next three years". If a foreign-invested enterprise reinvests its profits or profits directly obtained by foreign investors from this enterprise to increase its registered capital, or establishes other foreign-invested enterprises as capital investment for a period of not less than five years, it shall be reported to the tax authorities for approval in accordance with state regulations, and the income tax paid on the reinvested part shall be returned to the local finance in addition to 40%. With the approval of the tax authorities, an export enterprise or an advanced technology enterprise that directly reinvests in the establishment or expansion can fully repay the enterprise income tax paid by the reinvested part, which belongs to the municipal fiscal revenue. Article 8 Foreign investors are encouraged to set up investment companies. If a foreign investor invests in three enterprises in China, and the actual investment reaches more than US$ 30 million, he can set up another investment company with its headquarters in Fuzhou after approval. Upon the application of the enterprise and the approval of the tax authorities, the income tax paid by the foreign-invested enterprise in the first year from the profit-making year shall be fully returned by the financial department with the warehousing tax bill; The income tax paid in the second year to the third year shall be returned by the finance at 50% with the receipt of the tax bill after tax payment. Article 9 Foreign businessmen are encouraged to set up modern agriculture. With the approval of the finance department at the same level, 50% of the agricultural specialty tax paid by the excellent seedlings and breeding livestock projects planted, bred and exported in Fuzhou will be returned. Article 10 Further expand the field of foreign investment. Foreign businessmen set up information, consulting, transportation, warehousing and other services in our city, and the operating period is more than 10 years. From the profit-making year, the income tax paid in the first year will be fully returned by the finance with the receipt of the tax bill after tax payment; The income tax paid in the second year to the third year shall be returned by the finance at 50% with the receipt of the tax bill after tax payment. Eleventh to encourage foreign investment in key tourism industries. Foreign businessmen are allowed to invest and set up Sino-foreign joint venture travel agencies in national tourist resorts, and set up branches outside the zone to carry out related business. Upon approval, foreign businessmen can invest in the construction of villas, resorts and supporting services in tourist resorts. Foreign-invested productive enterprises in tourism can enjoy the relevant preferential policies of provinces and municipalities on accelerating the development of tourism, and can be implemented according to the preferential policies of income tax for pillar industries.