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SEVERAL
REGULATIONS OF THE JIANGSU PROVINCIAL
PEOPLE'S GOVERNMENT FOR THE ENCOURAGEMENT OF
FOREIGN INVESTMENT
(Issued
11 November 1986 by the Jiangsu Provincial
People's Government)
SUBJECT: ENTERPRISES WITH FOREIGN INVESTMENT
ISSUING-DEPT: JIANGSU PROVINCE
ISSUE-DATE: 11/11/1986
IMPLEMENT-DATE: 11/11/1986
LENGTH: 1423 words
TEXT:
These Regulations are formulated to help implement the State Council Regulations concerning Encouragement of Foreign Investment, to further improve the investment environment and encourage foreign investors to invest in our province, to import advanced technology, to increase foreign exchange earinigs through exports, to accelerate economic development and to link the provisions of the State Council Regulations with actual conditons in our province.
[Article 1] All exporting enterprises and technologically advanced enterprises will, in accordance with State regulations, be exempt from local imcome tax during the period of their exemption from enterprsie income tax. After the expiry of the exemption period, such enterprises will be exempt from local income tax for three years, following which the tax levy will be reduced by one-half for another three years.
After the expiry of the period of exemption from enterprise income tax in accordance with State regulations, exporting enterprises whose value of export products for the year amounts to 50% or more of the value of their total product output for that year will be exempt from local income tax.
Other foreign investment enterprises with an annual profit of less than 1,000,000 yuan will have their local income tax levy reduced by half.
[Article 2] Where land use fees are payable by foreign investment enterprises, those which are exporting enterprises or technologically advanced enterpirses will be exempt from land use fees for a period of five years after the acquisition of the right to use the land, and from the sixth year for a further five years the fees will be paid at half of the stipulated minimum rate. Other foreign investment enterprises will pay land use fees at half of the stipulated minimum rate during the five-year period after the acquisition of and. Further perferential treatment may be given by the various districts to foreign investment enterprises involved in the development of agriculture, forestry, animal husbandry and fishery and to foreign investment enterprises with have established joint ventures with rural and township enterprises.
[Article 3] The water and electricity requirements of foreign investment enterprises for production and operations will be listed by the local authorities in their plans and priority supply will be guarandteed. Exporting enterprises and technologically advanced enterprises will be charged in accordance with rates stipulated in the plans and other foreign investment enterprises will be charged in accordance with the standards for local State enterprise. All foreign investment enterprises which fall within the ambit of the provincial government's right of approval will, without exception, be exempt from supplementary charges such as those for expenses arising from water and elcetricity installation and expenses for increased volumes of water or electricity.
[Article 4] Local commodity department shall give priority to arranging the supply of raw materials to foreign investment enterprises to meet their construction and production requirements and the prices charged will be the same as those applied to local State enterprises. The provincial and municipal commodity department shall maintain materials and equipment supply bodies to serve foreign investment enterprises.
[Article 5] Problems concerning the funding of the investment of the Chinese party to a foreign investment enterprise will be fully resolved. The capital investment of the Chinese party to a joint investment enterprise will be financed ty the enterprise's own funds, bank loans, publicly raised funds or various other channels.
The various banks with which a foreign investment enterprise has opened an account will give priority when formulating loan targets to guaranteeing availability of working capital loans and short-tern working fundsfor the foreign investment enterprise.
Foreign investment enterprises may, in accordance with bank regulations, use cash or fixed assets as securities when applying to the bank for a loan.
Where a foreign investment enterprise requires a loan to meet its production and operation requirements, it may independently borrow from and repay foreign banks.
[Article 6] Apart from the allocation of funds for Chinese employees, labour insurance, welfare and housing subsidies in accordance with State regulations, foreign investment enterprises will be exempt from payments to the State for various employee subsidies and other fund raising and community charges. Housing subsidy funds raised by the enterprise will be retained by the enterprise itself to be used for employees' housing.
[Article 7] Parts components, elements, accessories and raw materials that are imported by foreign investment enterprises for import substitution production may be regarded by Customs as goods in bond. Where a foreign investment enterprise sells import substitute products similar to products which if imported directly from abroad by domestic users would enjoy a reduction of or exemption from duty, the foreign investment enterprise will enjoy the same reduction of or exemption from import duty on materials and parts used in the manufacture of those products. Those products of a foreign investment enterprise that are used in import substitution may, after approval by the local foreign exchange control department, be charged for partly or fully in foreign exchange.
[Article 8] Employees of foreign parties to foreign investment enterprises will pay income tax on their income from the joint venture in accordance with State regulations. Any income which they obtain from outside Chinese territory, regardless of whether or not it is remitted into China, may be exempt from individual income tax.
Employees of foreign parties to foreign investment enterprises in Jiangsu Province will, on producing a letter of introduction or work identification card from the enterprise, enjoy the same prices charged to employees of domestic enterprises for food, accommodation, urban transport, mail, telephone and other expenses incurred within the boundaries of Jiangsu Province, Payment may be made in Renminbi.
[Article 9] The right of autonomy of foreign investment enterprises in the areas of production, operations and employment will be fully insured. Any such enterprise has the right, within the scope of its approved contract, to determine independently all its production and business activities and no person shall interfere.
Visits to a foreign investment enterprise will be strictly controlled and entry may be refused if the approval of the joint venture enterprise has not been obtained.
[Article 10] Examining and approving rights will be handed down to lower authorities, examining and approving procedures will be simplified and work efficiency will be improved. Projects of less than $ US5,000,000 if established in Nantong, Lianyungang, Suzhou, Wuxi, changzhou or Nanjing, or less than $ US3,000,000 if established in other municipalities, which can resolve their own balance of funds, supply of raw materials and endergy, scale [of production], etc., may be examined and approved by the local municipal government. Where foreign investment enterprise projects are established in the Economic and Technological Development Zones of Nantong and Lianyungang Municipalities the relevant Municipal Government may authorise the Development Zone Administrative Committee to carry out examination and approval of the said project.
An official response must be issued within a month of receipt of all documents requiring a response when submitted by the various municipalities to the various provincial departments in charge. Certificates of approval and industrial and commerical business licences must be prepared within ten days.
Municipal foreign exchange control bureaux will be responsible for the control of a foreign investment enterprise's foreign exchange. Foreign municipal foreign exchange control bureau, adjust thir foreign exchange shortfalls and surpluses by means of compensation.
[Article 11] Leadership concerning the utilisation of foreign investment will be fully strengthened and a department will be designated at each level to be responsible specifically for the organisation and co-ordination involved in the utilisation of foreign investment.
[Article 12] These Regulations will be effective from the date of Promulgation. SEVERAL REGULATIONS OF THE JIANGSU PROVINCIAL
PEOPLE'S GOVERNMENT FOR THE ENCOURAGEMENT OF
FOREIGN INVESTMENT
(Issued 11 November 1986 by the Jiangsu Provincial
People's Government)
CHINALAW No. 388
SUBJECT: ENTERPRISES WITH FOREIGN INVESTMENT
ISSUING-DEPT: JIANGSU PROVINCE
ISSUE-DATE:
11/11/1986
IMPLEMENT-DATE:
11/11/1986
LENGTH: 1423 words
TEXT:
These Regulations are formulated to help implement the State Council Regulations concerning Encouragement of Foreign Investment, to further improve the investment environment and encourage foreign investors to invest in our province, to import advanced technology, to increase foreign exchange earinigs through exports, to accelerate economic development and to link the provisions of the State Council Regulations with actual conditons in our province.
[Article 1] All exporting enterprises and technologically advanced enterprises will, in accordance with State regulations, be exempt from local imcome tax during the period of their exemption from enterprsie income tax. After the expiry of the exemption period, such enterprises will be exempt from local income tax for three years, following which the tax levy will be reduced by one-half for another three years.
After the expiry of the period of exemption from enterprise income tax in accordance with State regulations, exporting enterprises whose value of export products for the year amounts to 50% or more of the value of their total product output for that year will be exempt from local income tax.
Other foreign investment enterprises with an annual profit of less than 1,000,000 yuan will have their local income tax levy reduced by half.
[Article 2] Where land use fees are payable by foreign investment enterprises, those which are exporting enterprises or technologically advanced enterpirses will be exempt from land use fees for a period of five years after the acquisition of the right to use the land, and from the sixth year for a further five years the fees will be paid at half of the stipulated minimum rate. Other foreign investment enterprises will pay land use fees at half of the stipulated minimum rate during the five-year period after the acquisition of and. Further perferential treatment may be given by the various districts to foreign investment enterprises involved in the development of agriculture, forestry, animal husbandry and fishery and to foreign investment enterprises with have established joint ventures with rural and township enterprises.
[Article 3] The water and electricity requirements of foreign investment enterprises for production and operations will be listed by the local authorities in their plans and priority supply will be guarandteed. Exporting enterprises and technologically advanced enterprises will be charged in accordance with rates stipulated in the plans and other foreign investment enterprises will be charged in accordance with the standards for local State enterprise. All foreign investment enterprises which fall within the ambit of the provincial government's right of approval will, without exception, be exempt from supplementary charges such as those for expenses arising from water and elcetricity installation and expenses for increased volumes of water or electricity.
[Article 4] Local commodity department shall give priority to arranging the supply of raw materials to foreign investment enterprises to meet their construction and production requirements and the prices charged will be the same as those applied to local State enterprises. The provincial and municipal commodity department shall maintain materials and equipment supply bodies to serve foreign investment enterprises.
[Article 5] Problems concerning the funding of the investment of the Chinese party to a foreign investment enterprise will be fully resolved. The capital investment of the Chinese party to a joint investment enterprise will be financed ty the enterprise's own funds, bank loans, publicly raised funds or various other channels.
The various banks with which a foreign investment enterprise has opened an account will give priority when formulating loan targets to guaranteeing availability of working capital loans and short-tern working fundsfor the foreign investment enterprise.
Foreign investment enterprises may, in accordance with bank regulations, use cash or fixed assets as securities when applying to the bank for a loan.
Where a foreign investment enterprise requires a loan to meet its production and operation requirements, it may independently borrow from and repay foreign banks.
[Article 6] Apart from the allocation of funds for Chinese employees, labour insurance, welfare and housing subsidies in accordance with State regulations, foreign investment enterprises will be exempt from payments to the State for various employee subsidies and other fund raising and community charges. Housing subsidy funds raised by the enterprise will be retained by the enterprise itself to be used for employees' housing.
[Article 7] Parts components, elements, accessories and raw materials that are imported by foreign investment enterprises for import substitution production may be regarded by Customs as goods in bond. Where a foreign investment enterprise sells import substitute products similar to products which if imported directly from abroad by domestic users would enjoy a reduction of or exemption from duty, the foreign investment enterprise will enjoy the same reduction of or exemption from import duty on materials and parts used in the manufacture of those products. Those products of a foreign investment enterprise that are used in import substitution may, after approval by the local foreign exchange control department, be charged for partly or fully in foreign exchange.
[Article 8] Employees of foreign parties to foreign investment enterprises will pay income tax on their income from the joint venture in accordance with State regulations. Any income which they obtain from outside Chinese territory, regardless of whether or not it is remitted into China, may be exempt from individual income tax.
Employees of foreign parties to foreign investment enterprises in Jiangsu Province will, on producing a letter of introduction or work identification card from the enterprise, enjoy the same prices charged to employees of domestic enterprises for food, accommodation, urban transport, mail, telephone and other expenses incurred within the boundaries of Jiangsu Province, Payment may be made in Renminbi.
[Article 9] The right of autonomy of foreign investment enterprises in the areas of production, operations and employment will be fully insured. Any such enterprise has the right, within the scope of its approved contract, to determine independently all its production and business activities and no person shall interfere.
Visits to a foreign investment enterprise will be strictly controlled and entry may be refused if the approval of the joint venture enterprise has not been obtained.
[Article 10] Examining and approving rights will be handed down to lower authorities, examining and approving procedures will be simplified and work efficiency will be improved. Projects of less than $ US5,000,000 if established in Nantong, Lianyungang, Suzhou, Wuxi, changzhou or Nanjing, or less than $ US3,000,000 if established in other municipalities, which can resolve their own balance of funds, supply of raw materials and endergy, scale [of production], etc., may be examined and approved by the local municipal government. Where foreign investment enterprise projects are established in the Economic and Technological Development Zones of Nantong and Lianyungang Municipalities the relevant Municipal Government may authorise the Development Zone Administrative Committee to carry out examination and approval of the said project.
An official response must be issued within a month of receipt of all documents requiring a response when submitted by the various municipalities to the various provincial departments in charge. Certificates of approval and industrial and commerical business licences must be prepared within ten days.
Municipal foreign exchange control bureaux will be responsible for the control of a foreign investment enterprise's foreign exchange. Foreign municipal foreign exchange control bureau, adjust thir foreign exchange shortfalls and surpluses by means of compensation.
[Article 11] Leadership concerning the utilisation of foreign investment will be fully strengthened and a department will be designated at each level to be responsible specifically for the organisation and co-ordination involved in the utilisation of foreign investment.
[Article 12] These Regulations will be effective from the date of Promulgation. SEVERAL REGULATIONS OF THE JIANGSU PROVINCIAL
PEOPLE'S GOVERNMENT FOR THE ENCOURAGEMENT OF
FOREIGN INVESTMENT
(Issued 11 November 1986 by the Jiangsu Provincial
People's Government)
CHINALAW No. 388
SUBJECT: ENTERPRISES WITH FOREIGN INVESTMENT
ISSUING-DEPT: JIANGSU PROVINCE
ISSUE-DATE:
11/11/1986
IMPLEMENT-DATE:
11/11/1986
LENGTH: 1423 words
TEXT:
These Regulations are formulated to help implement the State Council Regulations concerning Encouragement of Foreign Investment, to further improve the investment environment and encourage foreign investors to invest in our province, to import advanced technology, to increase foreign exchange earinigs through exports, to accelerate economic development and to link the provisions of the State Council Regulations with actual conditons in our province.
[Article 1] All exporting enterprises and technologically advanced enterprises will, in accordance with State regulations, be exempt from local imcome tax during the period of their exemption from enterprsie income tax. After the expiry of the exemption period, such enterprises will be exempt from local income tax for three years, following which the tax levy will be reduced by one-half for another three years.
After the expiry of the period of exemption from enterprise income tax in accordance with State regulations, exporting enterprises whose value of export products for the year amounts to 50% or more of the value of their total product output for that year will be exempt from local income tax.
Other foreign investment enterprises with an annual profit of less than 1,000,000 yuan will have their local income tax levy reduced by half.
[Article 2] Where land use fees are payable by foreign investment enterprises, those which are exporting enterprises or technologically advanced enterpirses will be exempt from land use fees for a period of five years after the acquisition of the right to use the land, and from the sixth year for a further five years the fees will be paid at half of the stipulated minimum rate. Other foreign investment enterprises will pay land use fees at half of the stipulated minimum rate during the five-year period after the acquisition of and. Further perferential treatment may be given by the various districts to foreign investment enterprises involved in the development of agriculture, forestry, animal husbandry and fishery and to foreign investment enterprises with have established joint ventures with rural and township enterprises.
[Article 3] The water and electricity requirements of foreign investment enterprises for production and operations will be listed by the local authorities in their plans and priority supply will be guarandteed. Exporting enterprises and technologically advanced enterprises will be charged in accordance with rates stipulated in the plans and other foreign investment enterprises will be charged in accordance with the standards for local State enterprise. All foreign investment enterprises which fall within the ambit of the provincial government's right of approval will, without exception, be exempt from supplementary charges such as those for expenses arising from water and elcetricity installation and expenses for increased volumes of water or electricity.
[Article 4] Local commodity department shall give priority to arranging the supply of raw materials to foreign investment enterprises to meet their construction and production requirements and the prices charged will be the same as those applied to local State enterprises. The provincial and municipal commodity department shall maintain materials and equipment supply bodies to serve foreign investment enterprises.
[Article 5] Problems concerning the funding of the investment of the Chinese party to a foreign investment enterprise will be fully resolved. The capital investment of the Chinese party to a joint investment enterprise will be financed ty the enterprise's own funds, bank loans, publicly raised funds or various other channels.
The various banks with which a foreign investment enterprise has opened an account will give priority when formulating loan targets to guaranteeing availability of working capital loans and short-tern working fundsfor the foreign investment enterprise.
Foreign investment enterprises may, in accordance with bank regulations, use cash or fixed assets as securities when applying to the bank for a loan.
Where a foreign investment enterprise requires a loan to meet its production and operation requirements, it may independently borrow from and repay foreign banks.
[Article 6] Apart from the allocation of funds for Chinese employees, labour insurance, welfare and housing subsidies in accordance with State regulations, foreign investment enterprises will be exempt from payments to the State for various employee subsidies and other fund raising and community charges. Housing subsidy funds raised by the enterprise will be retained by the enterprise itself to be used for employees' housing.
[Article 7] Parts components, elements, accessories and raw materials that are imported by foreign investment enterprises for import substitution production may be regarded by Customs as goods in bond. Where a foreign investment enterprise sells import substitute products similar to products which if imported directly from abroad by domestic users would enjoy a reduction of or exemption from duty, the foreign investment enterprise will enjoy the same reduction of or exemption from import duty on materials and parts used in the manufacture of those products. Those products of a foreign investment enterprise that are used in import substitution may, after approval by the local foreign exchange control department, be charged for partly or fully in foreign exchange.
[Article 8] Employees of foreign parties to foreign investment enterprises will pay income tax on their income from the joint venture in accordance with State regulations. Any income which they obtain from outside Chinese territory, regardless of whether or not it is remitted into China, may be exempt from individual income tax.
Employees of foreign parties to foreign investment enterprises in Jiangsu Province will, on producing a letter of introduction or work identification card from the enterprise, enjoy the same prices charged to employees of domestic enterprises for food, accommodation, urban transport, mail, telephone and other expenses incurred within the boundaries of Jiangsu Province, Payment may be made in Renminbi.
[Article 9] The right of autonomy of foreign investment enterprises in the areas of production, operations and employment will be fully insured. Any such enterprise has the right, within the scope of its approved contract, to determine independently all its production and business activities and no person shall interfere.
Visits to a foreign investment enterprise will be strictly controlled and entry may be refused if the approval of the joint venture enterprise has not been obtained.
[Article 10] Examining and approving rights will be handed down to lower authorities, examining and approving procedures will be simplified and work efficiency will be improved. Projects of less than $ US5,000,000 if established in Nantong, Lianyungang, Suzhou, Wuxi, changzhou or Nanjing, or less than $ US3,000,000 if established in other municipalities, which can resolve their own balance of funds, supply of raw materials and endergy, scale [of production], etc., may be examined and approved by the local municipal government. Where foreign investment enterprise projects are established in the Economic and Technological Development Zones of Nantong and Lianyungang Municipalities the relevant Municipal Government may authorise the Development Zone Administrative Committee to carry out examination and approval of the said project.
An official response must be issued within a month of receipt of all documents requiring a response when submitted by the various municipalities to the various provincial departments in charge. Certificates of approval and industrial and commerical business licences must be prepared within ten days.
Municipal foreign exchange control bureaux will be responsible for the control of a foreign investment enterprise's foreign exchange. Foreign municipal foreign exchange control bureau, adjust thir foreign exchange shortfalls and surpluses by means of compensation.
[Article 11] Leadership concerning the utilisation of foreign investment will be fully strengthened and a department will be designated at each level to be responsible specifically for the organisation and co-ordination involved in the utilisation of foreign investment.
[Article 12] These Regulations will be effective from the date of Promulgation.
