Several preferential policies for Tianjin to further encourage foreign investment

1. Tianjin’s regulations for further encouraging foreign investment

Foreign-invested enterprises from the establishment of the enterprise to the formal start of production , after Tianjin Customs has gone through the relevant procedures, the product samples that the company plans to put into production can be imported and displayed in a bonded manner.

Foreign investment projects that meet the conditions of national high-tech enterprises can enjoy the following preferential policies:

(1) High-tech pricing capital contribution or shareholding, subject to approval by the approval agency, the pricing amount is not subject to limit.

(2) Office, experimental, production and other buildings in the Tianjin Economic and Technological Development Zone TEDA International Entrepreneurship Center, Tianjin Port Free Trade Zone Science and Technology Park and Tianjin New Technology Industrial Park Entrepreneurship Center are in the "incubation period" The project implements zero rent.

(3) Tianjin Economic and Technological Development Zone, Tianjin Port Free Trade Zone Science and Technology Park and Tianjin New Technology Industrial Park allocate 3% of fiscal revenue every year as science and technology risk funds to support the development of high-tech enterprises.

Foreign investors who introduce fine varieties and advanced technologies to develop agriculture enjoy the following preferential policies:

(1) Certified productive agricultural high-tech enterprises with an operating period of more than 10 years, Starting from the year when profits begin, corporate income tax will be exempted in the first and second years; corporate income tax will be levied at half the rate in the third to fifth years, with a levy first and refund later; corporate income tax will be exempted from the sixth to tenth years. Income tax is collected in full and refunded in half. The actual tax rate levied by half shall not be less than 10%.

(2) New technology and new product test bases established in the Tianjin Export-oriented High-Tech Agricultural Modernization Demonstration Zone and the Tianjin Agricultural Science and Technology Introduction and Digestion Center will be exempted from agricultural and forestry taxes for three years starting from their operating income. Specialty tax.

(3) Foreign-invested enterprises engaged in the development and production of six agricultural and sideline products, including fruits, vegetables, livestock and poultry products, seawater and freshwater products, green food and crafts, whose variety and quality are superior to similar products, It can also drive farmers or supporting enterprises to expand exports and receive support from special preferential loans for agricultural industrialization.

Foreign investors investing in transportation and municipal facilities in Tianjin enjoy the following preferential policies:

(1) Foreign investment in transportation infrastructure projects and municipal public facilities projects in Tianjin must be approved by the municipal taxation department , pay corporate income tax at a reduced rate of 15%, and with the approval of the municipal finance department, the business tax will be returned in full year by year during the investment recovery period.

(2) For enterprises mentioned in the preceding paragraph with an operating period of more than 15 years, with the approval of the municipal finance department, corporate income tax will be fully refunded year by year within 5 years from the year of profit; starting from the sixth year, The corporate income tax will be refunded in half every year for five years.

2. Relevant national policies and regulations (compiled in accordance with relevant national regulations)

1. Encourage technological development and innovation of foreign-invested enterprises and expand domestic procurement

(1) ) For the technological transformation of established encouraged and restricted Category B foreign-invested enterprises, foreign-invested research and development centers, advanced technology-based and product-export-oriented foreign-invested enterprises that cannot be produced domestically within the original approved production and operation scope or whose performance cannot meet the needs Self-use equipment and its supporting technology, accessories and spare parts are exempt from import tariffs and import link tariffs.

(2) For foreign-invested enterprises that purchase domestic equipment within the total investment amount, if such imported equipment falls within the scope of the tax-free catalog, the value-added tax on the domestic equipment can be fully refunded and corporate income tax can be deducted in accordance with relevant regulations.

(3) For research and development centers established with foreign investment, the transfer of technology is exempt from business tax compared with domestic scientific research institutions.

(4) Foreign enterprises that transfer technology to our territory and which are technologically advanced or have favorable conditions may be exempted from business tax and corporate income tax with the approval of the taxation department of the State Council; technology transfer income obtained by foreign-invested enterprises Exempt from sales tax.

(5) If the technology development expenses of a foreign-invested enterprise increase by more than 10% (inclusive) compared with the previous year, upon approval by the tax authorities, 50% of the actual amount of the technology development expenses can be deducted for the current year. Taxable income for the year.

(6) With the approval of the tax authorities, old foreign-invested enterprises established before the end of 1993 can be allowed to export goods and choose to implement the "no tax, no refund" or "exemption, offset and refund" policy before the end of 2000 ( Can only be selected once).

2. Encourage the expansion of exports

(1) Use a variety of economic means to further support exports

1. Further increase the tax rebate rate for some export commodities, so as to Effective from July 1, 1999. The export rebate rate for high-tech products shall be based on the value-added tax rate.

2. Relevant commercial banks should, in accordance with credit principles, prioritize and focus on supporting working capital loans required by export enterprises, and appropriately increase foreign exchange loans for imported materials; Creditworthy export enterprises are granted a certain amount of export credit through credit ratings.

3. Cancel the review of the settlement and entry of foreign exchange receipts from exports of enterprises. The foreign exchange income of enterprises under the current account can be directly settled and entered in the bank at the bank. 4. Relax the issuance restrictions on export verification orders.

(2) Standardize the management of processing trade

1. Implement as soon as possible and gradually improve the classification management standards for processing trade enterprises, encourage enterprises to strive to become Class A enterprises, and evaluate enterprises as Class A And processing trade enterprises that meet the standards will no longer implement the bank deposit ledger system and simplify management procedures.

2. The import quota management of sugar, vegetable oil, natural rubber, and wool for processing trade imports will be suspended. They will be included in the catalog of restricted commodities under processing trade management and "actual transfer" of bank deposit accounts will be implemented, and they will be strictly supervised by the customs.

3. In order to reduce the burden on enterprises, enterprises with "actual transfer" are allowed to pay deposits or provide guarantees in various forms.

4. Conduct pilot projects to establish standardized and closed export processing zones, and gradually guide export processing enterprises to concentrate in bonded areas and export processing zones. Within the designated area, a "domestic and external" management system is implemented, with customs supervision. Materials shipped into the area from outside the area will be regarded as exports, and tax refunds will be provided in accordance with regulations. At the same time, measures must be taken to prevent enterprises from transporting unsold goods into the area for storage; products shipped from within the area to outside the area will be treated as exports. For imports, import duties and import link taxes are levied according to the tax rate used by the product. No value-added tax is levied on the added value of processing within the zone.

(3) Simplify import and export management procedures and reduce charges

1. Standardize import and export charges. Reduce the scope of statutory inspection of imported and exported commodities, clean up import and export inspection and quarantine and port operating charges, prohibit arbitrary charges, cancel repetitive charges, reduce the total scale of administrative charges, and formulate new inspection and quarantine charge management methods and charging standards.

2. Further simplify the management procedures of each export link. All customs must speed up the customs clearance of export commodities; the tax department must speed up the tax refund process.

3. Supplementary provisions for foreign investment in establishing investment companies

(1) The registered capital of an investment company shall not be less than 30 million U.S. dollars, and the loan amount of an investment company shall not exceed 4 times the amount of paid registered capital. If an investment company intends to obtain a loan exceeding four times the paid registered capital due to business needs, it shall report to the Ministry of Trade and Economic Cooperation for approval.

(2) Encourage investment companies to set up scientific research and development centers or departments in China to engage in the research and development of new products and high technologies, transfer their research and development results, and provide corresponding technical services.

(3) Investment companies can sell products produced by the companies they invest in in domestic and foreign markets through agency or distribution. (4) Investment companies can provide transportation, warehousing and other comprehensive services to the companies they invest in.

(5) Investment companies can purchase goods for export within the country that do not involve export quotas or export license management.

4. Increase financial support for foreign-invested enterprises

(1) When foreign-invested enterprises raise funds within the country, Chinese-funded commercial banks are allowed to accept guarantees from foreign shareholders. Foreign-invested enterprises are allowed to apply for RMB loans from designated domestic Chinese-funded foreign exchange banks in the form of foreign exchange pledges. All foreign exchange funds of foreign-invested enterprises can be pledged; credit guarantees can be provided for RMB loans under foreign exchange guarantees by overseas financial institutions or domestic foreign-funded financial institutions; The registration procedures under foreign exchange pledges and foreign exchange guarantees and special restrictions on the credit ratings of foreign banks providing foreign exchange guarantees are cancelled. RMB loans guaranteed by foreign shareholders and foreign exchange guarantees should comply with industrial policies and can be used to meet fixed asset investment and working capital needs, but cannot be used to purchase foreign exchange. The maximum term of a foreign exchange-guaranteed RMB loan shall not exceed five years.

(2) Establishing special industrial investment funds to alleviate the problem of insufficient Chinese equity capital when existing foreign-invested enterprises increase capital. At the same time, domestic Chinese-funded commercial banks are allowed to issue equity loans of no more than 50% to Chinese shareholders with a term of no more than 10 years on the premise that the increased equity capital of foreign shareholders of Sino-foreign joint ventures and cooperative enterprises is in place at the same time.

(3) Domestic foreign-invested enterprises are allowed to use their foreign investors’ overseas assets to provide mortgages to overseas branches of domestic Chinese-funded banks, and overseas branches or domestic branches of Chinese-funded commercial banks will issue loans to them.

(4) Qualified foreign-invested enterprises can apply to issue A shares or B shares.

(5) Provide political risk insurance, performance insurance, guarantee insurance and other insurance services to foreign investors investing in energy, transportation and other fields that are strongly encouraged by the state.

5. Further improve the management and services for foreign-invested enterprises

(1) Appropriately reduce the restricted items in the "Guidance Catalog of Foreign Investment Industries" that require Chinese parties to hold shares and do not allow wholly foreign-owned enterprises. .

(2) All foreign investment projects that are encouraged and do not require national comprehensive balance shall be approved by the provincial people's government and reported to the State Planning Commission, the State Economic and Trade Commission, and the Ministry of Foreign Trade and Economic Cooperation for filing. Relevant departments under the State Council and local people's governments should further simplify the approval procedures for foreign investment projects and enterprise establishments and speed up the approval process.

(3) Further improve the online verification system for customs declaration forms to verify the authenticity of foreign exchange sales under the current account, and shorten the review time;

Foreign-invested enterprises can rely on the technology transfer at the time of establishment Agreements and approval documents are required to handle the foreign exchange sales and payment procedures under the technology introduction.

Foreign-invested enterprises can convert deposits in foreign exchange settlement accounts into time deposits within limits. In accordance with the principle of territorial management, the approval authority for the settlement of foreign exchange income under capital accounts is delegated to lower levels, and the registration system for the settlement of foreign exchange income under capital accounts is cancelled.

(4) Gradually narrow the scope of mandatory value appraisal for equipment imported by foreign-invested enterprises, improve appraisal methods, and cancel the mandatory value appraisal for equipment imported by wholly foreign-owned enterprises. Standardize customs management, improve efficiency, and speed up customs clearance. Resolutely stop arbitrary fees, inspections and various assessments of foreign-invested enterprises.

(5) Foreign-invested enterprises that obtain land use rights through transfer will no longer pay site use fees.

(6) Promptly clean up the policies and regulations for foreign-invested enterprises, adjust relevant policies and regulations that are not conducive to attracting foreign investment as soon as possible, and improve the legal and regulatory system for foreign investment.

Tianjin City’s Notice on Further Supporting the Development and Attraction of Enterprises

(1) For the profits realized from confirmed national new products and patented products, within three years from the date of sale, Exemption from corporate income tax; profits realized from confirmed municipal new products will be exempt from corporate income tax within two years from the date of sale.

(2) In order to attract foreign investors to establish research and development institutions in our city, with reference to the fiscal and taxation policies of state-owned research and development institutions, technology transfer to foreign-invested high-tech research and development institutions and any matters that occur during the technology transfer process Income from technical consulting, technical services, and technical training related to technology transfer are temporarily exempt from business tax and corporate income tax. The preferential corporate income tax policy for foreign-invested enterprises and units adopts the form of collection first and refund later.

(3) The profits realized by foreign-invested high-tech research institutions and new products that expand intermediate experiments shall be implemented in accordance with the income tax policy for new products of domestic-funded enterprises in our city.

(4) If various investment companies in this city invest in high-tech industrialization projects in our city, and the investment amount reaches more than 25% of the capital of the invested enterprise, their equity dividends will be exempt from corporate income tax; and 50% of the profit distribution amount will be deducted from the investment company's own taxable profits, and the corporate income tax will be reduced for three years.

(5) After the new product is successfully put into production, the enterprise can withdraw incentive funds from the cost and expenses at the proportion of 5% of the new net profit of the new product for three consecutive years to reward the development of the new product. Personnel who have made important contributions to a new product.

Financial and taxation policies to encourage foreign investment in our city:

(1) During the reorganization process of a Sino-foreign joint venture, one party of the enterprise sells the land and the original real estate on the land. For the transfer of land use rights, the transfer income obtained by the transferor will be exempted from business tax; the transferee will be exempted from deed tax when handling the transfer procedures of land and real estate ownership on the ground.

(2) Foreign investors investing in banks, insurance companies, law firms, accounting firms and senior consulting companies in our city are exempt from deed tax and urban real estate tax on newly purchased and built self-use office properties. One year. Banks and insurance companies are exempt from local income tax starting from the profit-making year. Law firms, accounting firms and senior consulting firms are exempt from corporate income tax from the first to the second year from the date of opening.