Issuing unit: Hefei Municipal People's Government In order to further encourage foreign investment, improve the city's opening up and economic development level, vigorously develop pillar industries, and increase the city's economic aggregate, these regulations are formulated in accordance with relevant national policies and regulations and in conjunction with the actual situation of our city.

Article 1 Continue to implement various current national and provincial policies and regulations entrusted to our city to encourage foreign investment and accelerate the use of foreign capital, as well as the "Decision of the Hefei Municipal People's Government on Accelerating the Construction and Development of Development Zones" (Hezheng [1998] No. 150)

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Article 2: Foreign investors are encouraged to invest in the establishment of advanced technology enterprises and product export enterprises.

The establishment of the above-mentioned enterprises, in addition to enjoying the preferential policies of national income tax reduction and exemption, during the period of half tax reduction, after the enterprise pays taxes, the municipal finance department will fully refund the municipal fiscal revenue by presenting the tax receipt.

Article 3: Foreign investors are encouraged to invest in the construction of transportation, energy, ports, water conservancy, environmental protection and other infrastructure.

For foreign-invested enterprises engaged in transportation, energy, and port construction, in addition to enjoying relevant national policies, during the period of half tax reduction, after the enterprises pay taxes, the municipal finance department will fully refund the municipal fiscal revenue by presenting the tax receipts.

For foreign-invested enterprises engaged in infrastructure construction such as water conservancy and environmental protection, upon approval, corporate income tax will be collected first and then refunded starting from the profit-making year. After the enterprise pays taxes, the municipal finance department will refund all the taxes in the first five years based on the tax receipts.

It is part of the municipal fiscal revenue and will be returned in half in the next five years.

Article 4: Encourage foreign investment in key industrial projects.

If the total investment is more than 10 million U.S. dollars and the operation period is more than 10 years, it shall be reviewed and confirmed by the relevant government departments and implemented in accordance with Article 2 of the policy.

If foreign investors invest in the above-mentioned industrial projects and meet the conditions, accelerated depreciation of their fixed assets will be allowed with the approval of relevant departments.

The financial sector will provide appropriate support to short-term working capital loans based on the principle of priority support.

For foreign investment in major projects in pillar industries that are particularly encouraged by our city, and with an operating period of more than 10 years, appropriate discounts will be given to the local retained portion of the value-added tax upon approval by the municipal government.

Article 5: Foreign investors are encouraged to acquire bankrupt enterprises.

Foreign investors who acquire bankrupt enterprises as a whole will continue to enjoy the relevant policies of the municipal government's "Several Opinions on Encouraging the Acquisition of Bankrupt Enterprises" (He Zheng [1996] No. 207).

New enterprises established to provide employment to employees of bankrupt enterprises shall enjoy the relevant re-employment preferential policies of the municipal government.

At the same time, all construction fees will be waived for three years.

Article 6: Encourage foreign investment in large projects with an investment of more than 10 million U.S. dollars (including 10 million U.S. dollars).

Upon approval of the project construction land, investors are allowed to pay the land transfer fee in installments within 2 years.

Article 7: Encourage foreign investment to establish modern agriculture.

If the operation period is more than 10 years, the policy in Article 2 shall be followed.

Projects that invest in our city’s “two highs and one high quality” agriculture and foreign exchange-generating tourism agriculture will be exempted from agricultural special product tax for three years.

For projects that introduce high and new technologies for agricultural development, in addition to land transfer fees, relevant land supporting fees can be exempted with the approval of the municipal government, and land leasing can also be adopted in accordance with the law.

Article 8 When foreign investors invest in the above-mentioned areas encouraged by our city, according to the specific circumstances of the project, for every US$500,000 of actual investment, foreign investors can apply for one urban household registration for their immediate family members in the place of investment, but the urban household registration for each investor

The maximum number of persons shall not exceed 5.

Article 9: Continue to improve the joint office system for foreign investment project approval and service management.

The joint office is located in the Municipal Foreign Investment Office and adopts a regular centralized approach. The Municipal Foreign Investment Office takes the lead in approving specific projects, and the relevant departments handle them according to their division of labor.

Each unit of the joint office must take the overall situation into consideration and adhere to one window for external review and one-stop approval service procedures.

For major foreign investment projects, the Municipal Foreign Investment Office will take the lead and establish a project team to provide coordination and follow-up services; for general projects, dedicated personnel must also be designated to provide foreign investment with full-process services from project negotiation and approval to enterprise establishment.

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Each development zone can also follow the city’s approach and establish a joint system for the approval and service management of foreign-invested projects.

Article 10: In order to support the development of foreign-invested enterprises and in conjunction with the development of the industrial economy of our city, the municipal finance will invest a certain amount of funds and establish relevant funds respectively.

Those who meet the conditions for foreign investment are regarded as state-owned enterprises and can apply for the use of funds.

Article 11: Encourage foreign-invested enterprises to develop and expand, and establish incentives for foreign-invested enterprises with large profits and taxes.

Foreign-invested enterprises that have paid taxes among the top three in the city for two consecutive years will be awarded the title of Star Foreign-invested Enterprise by the municipal government, and will be given preferential policies to provide loans first and waive construction fees for three years.

Article 12: All relevant departments shall provide timely and sufficient supply of water, electricity, gas, transportation and communications required for 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, etc. within the scope of our city for foreign investors of foreign-invested enterprises and overseas employees employed by the enterprises are the same as those for residents of this city.