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1. For sino-foreign joint ventures
investing energy, communication, port and jetty, tax will be
levied on enterprise incomes according to 15% tax rate. If the
operation period of the joint venture is over 15 years, with
the approval of taxation authority, the method of tax levy
first and tax return later can be used, from the year the
enterprise gains profit, the enterprise income tax will be
exempted from the first year to the fifth year, and will be
half exempted from the sixth year to the tenth year.If the
foreign merchant reinvest the city infrastructure with the
profit obtained from the above-mention operation and the
operation period will not be shorter than five years, with the
approval of taxation authority, 40% of levied enterprise
income tax of the reinvestment will be returned.
2.Vehicle passage fee or other operation incomes levied
on newly approved foreign financed enterprises investing
infrastructure of communication, port and jetty and etc., with
the approval of taxation authority, the method of tax levy
first and tax return later can be used, the operation tax will
be returned according to a proportion within the investment
recovery period.
3.Foreign financed enterprises investing city
infrastructure can apply for establishment of matching
comprehensive operation project along the infrastructure
constructed by themselves or within appointed region. The
price of required land for development will be decided
according to the standard land price.
4.Foreign investors are encouraged to buy part of
stocks or a certain period of business right of city
infrastructures of energy, communications and port and etc.
Constructed or under construction. If foreign investors buy
over 25% of stocks, with the approval of taxation authority,
they will enjoy related preferential policy.
5.For the foreign financed enterprises in the EDZ, with
the approval of taxation authority, the method of tax levy
first and tax return later can be used, from the year the
enterprise gains profit, the local income tax will be exempted
for ten years.
6.The foreign financed enterprises in the EDZ will be
levied on taxes and enjoy related preferential policies of the
EDZ.
7. For the foreign financed enterprises in the EDZ,
they will be free for other administration fees except land
fee.
8.The technology of the foreign financed hi-tech
enterprise can cover 35% of total registered capital.
9.For the equipment of foreign financed hi-tech
enterprises, which are used in development of hi-tech and
production of hi-tech products, with the approval of the
financial and taxation authorities, their depreciation can be
accelerated. The depreciation fee will be kept to revamp for
the enterprises.
10.The foreign financed hi-tech enterprises with
operation period over 10 years can have an additional three
years for paying half of income tax after the specified
reduction and exemption period of income tax expires, if the
income tax rate after half exemption is lower than 10%, the
income tax will be paid according to 10% income tax
rate.
11.For the foreign financed enterprise with products
for export, after the specified reduction and exemption period
of income tax expires, if the export goods value reaches over
50% of the output value of that year or over 1 million USD,
the income tax can be half exempted. The income tax rate after
half exemption is lower than 10%, the income tax will be paid
according to 10% income tax rate.
12.Encouraging transnational corporation for investment
a. The transnational corporations, which have more than
three productive or infrastructure companies in China and
which have had actual investment capital over 30 million USD,
can apply for establishing investment companies in Wuhan.
b. The transnational corporations, which have established
more than three foreign financed companies in Wuhan, can be
approved to set up group corporation and can use the name of
group corporation after approved by the industrial and
commercial bureau. c. The transnational corporations
invested in the city infrastructures of communications, energy
and etc. in Wuhan are allowed to control the stocks or to
solely operate the city infrastructures besides otherwise
specified by the Chinese Government. d. The land
application right price of the transnational corporation
invested in large or medium projects, or technology and
capital conglomerated projects and agricultural projects will
be negotiated according to current price or will be paid by
installments.
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