Brief Introduction To East Industrial Area In Xiamen

Information about East Industrial Area  The East Industrial Area is an extension of the Torch Hi-tech Industrial Development Zone. The area is located in the middle of Xiang¡¯an. The project is designed to develop 4 square kilometers of land in the initial phase, 8 square kilometers in the second phase and 20 square kilometers in the long-term plan. The area will be a major showcase for Xiamen, and a leading force in the development of eastern Xiamen. Its advancement in new and high-technology will promote the development of surrounding areas. The East Area will remain a great potential for Xiamen¡¯s future. Advantageous location & transport The East Industrial Area is adjacent to the Xiang¡¯an Avenue, now under construction. It is 5 kilometers away from the Fuzhou-Xiamen Motorway and 18 kilometers away from Xiamen city by way of the East Passageway, also under construction. The area is less than 10 kilometers away from the planned dock area and the logistics park in the east. Favorable conditions for investment  The Xiamen Torch Hi-tech Industrial Development Zone was listed as among the most ideal development zones for foreign investors, according to the appraisal given by the American Bourns, Inc., after a thorough inspection of the zone¡¯s infrastructure facilities and social conditions. The promulgation of a series of government regulations and statutes in Xiamen, such as Regulations for Hi-tech Industrial Parks/Zones in Xiamen Special Economic Zone and Regulations for Encouraging Returned Chinese Scholars to Work in Xiamen, has created a relaxed atmosphere for the promotion of hi-tech industry in Xiamen, thus facilitating the development of the East Industrial Area. The Torch Hi-tech Industrial Development Zone provides streamlined ¡°one-stop-service¡± for investors, assisting in project application, business registration and tax registration, all free of charge. There are service units offering service in industrial & commercial administration, taxation, banking and others. There are also working stations for returned Chinese scholars. Several intermediary bodies have set up their businesses in the zone, providing such services as investment consultancy, technology transfer, assets appraisal, information service, legal service, property rights transaction, foreign trade agency and talent exchange. Encouraged areas for investment  The East Industrial Area encourages development and industrialization in the following sectors: Electronic Information, Software, Machinery, Electrical Engineering and Biomedicine. Object of planning The East Industrial Area is designed to become a distinctive industrial base with key national or international enterprises as its mainstay and their ancillary product-related enterprises as the supplement. Objects of development  It is the objective of the East Industrial Area to become: a base for development of new & hi-tech industry; a base for export of new & hi-tech products; a base to incubate new & hi-tech enterprises; a base where entrepreneurs specializing in new & hi-technology may grow rapidly; a base to facilitate the economic and technological exchanges and cooperation between the mainland and Taiwan; a model to demonstrate technological innovation and a model of Xiamen¡¯s new urban areas. Construction projects in surrounding areas The International New City C a quality residential area for overseas business people and professionals; The International School and the Xiamen Adult Education Centre; General and specialized hospitals Major incentives for investment in East Industrial Area 1. Productive foreign-invested enterprises with a registered operation period of over 10 years shall be exempt from the corporate income tax for the first two profit-making years, and shall enjoy a 50% tax cut for the following three years. 2. Foreign-invested enterprises with a yearly export volume making up over 70% of the enterprise¡¯s total output value, and with a surplus or balance between foreign exchange receipts and payments, shall enjoy a preferential income tax rate of 10% in the year after the expiration of the stipulated corporate income tax exemption and reduction period. Foreign-invested enterprises certified by authorities as technologically advanced shall enjoy the same preference of 10% income tax rate in the successive three years after the expiration of the above-mentioned period of tax exemption and tax cut. 3. Foreign-invested enterprises engaged in research and development of technology, with their yearly expenditures on technological research and development in China increasing by over 10% (10% inclusive) as compared with the previous year, shall have 50% of the actual amount of expenditures deducted from the taxable income in that year, on the condition that such expenditures have been certified by the tax authorities. 4. Foreign investors that re-invest profits in the existing enterprise or use profits as capital to set up another enterprise with an operation period of over 5 years shall enjoy a 40% refund of the tax on the reinvested profits. If such profits are re-invested in establishing or expanding an export-oriented enterprise or a technologically advanced enterprise with an operation period of over 5 years, the investor shall be entitled to a 100% refund of the tax on such reinvested profits. 5. Civilian-run enterprises of technology type shall receive 100% of refund of its corporate income tax retained by the zone¡¯s finance authorities for two years starting from its first profit-making year, and 50% of refund in the successive three years. 6. Foreign-invested enterprises engaged in construction of basic structural projects in the zone such as roads, water supply, electricity and gas supplies, and with an operation period of over 10 years, shall have 100% refund of the corporate income tax retained by the zone throughout five years starting from the time the project is in operation. From the sixth year until the tenth, the enterprise shall continue to have a 50% tax rebate. 7. Investors engaged in municipal infrastructure projects shall receive compensation by way of land use or business administration charges; or a combination of both. 8. Investors engaged in large area land development or large-scaled industrial projects may pay the land use fees in installments. They may start design and construction immediately after having made the first installment of 30%. The rest of the payment may be made within two years. A 20% discount will be given to those who make the payment in one full installment. 9. Joint ventures belonging to national-encouraged types or characterized with advanced technology, or involving a relatively large investment, may use the land by becoming the shareholder through pricing its own land and housing properties. 10. Industrial land investment projects shall be given discounts in land price according to the technological level of the project, its investment intensity, and project efficiency. The first 20 enterprises that come to set up their businesses in the East Industrial Area and each involving an investment of over RMB10 million shall be given a further discount of at least 50%. 11. Venture capital investment organizations shall be awarded by the zone¡¯s finance authorities a 20% refund of their investment in hi-tech or other innovative industrial projects in the East Industrial Area on the condition that they have been paying taxes according to regulations. The award shall be given by stages within five years.