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Shaoxing Paojiang Industrial Zone
Shaoxing Paojiang industrial ZoneIn order to accelerate the development strategy of building "a city with powerful economy, diversified culture and attractive tourism," Shaoxing city government and Municipal Party Committee set up Shaoxing Paojiang Industrial Zone in July 2000. The objective is to build it into a new modernized, high-tech oriented industrial city, and one of the three component areas of Shaoxing center city.
SPIZ administrates Doumen and Mashan towns and covers an area of 83 square kilometers with a population of more than 0.1 million. As the largest industrial area in Zhejiang Province, SPIZ plans to cover 41 square kilometers with a population of 0.17 million by 2020 in accordance with the general demands of the economical development and urban construction of Shaoxing city.
SPIZ adheres to developing industries first, investment from abroad first and high-tech industries first as its working principle and plans to construct: Foreign Investment Park, Bio-engineering Pharmaceutical and Fine Chemicals Park, Traditional Industries Upgrade Section and Central Commercial & Residential Section. SPIZ focuses on developing new high-tech industries such as biology & pharmaceutical, electro-mechanical integration, fine chemicals, new materials and environmental protection items and encourages the innovation and upgrade of the traditional industries like light textile and food industries. Until now, 106 industrial projects with planned investment US$ 8.96 billion and contractual investment US $ 0.3 billion and actual investment US$ 0.06 million have been approved. Italian Vernicial Co. Ltd, Japanese Zixin Food Company and three domestic scaled projects with a total investment of US $ 0.36 billion are part of the projects in the zone.
Investment environment
Owing to the following three advantages of its own, SPIZ has arisen good development tendency:
1. Geographic location:
The zone is located in the Yangtze River Delta Economic Zone, which is the most populated and has the fastest speed of economic development as well as the strongest purchasing power. After 20 years' development, the industrial economy of Shaoxing is quite developed. An industrialized manufacturing system of IT, tnd trading and manufacturing partners so as to lower expenses. Located near Shanghai-Hangzhou-Ningbo Expressway,extile & dyeing, machinery, food & yellow rice wine, medicine & chemistry and modern building materials has been formed. New firms can easily fi SPIZ enjoys a favorable geographical position by land, water, and air. It is only 200 kilometers from Shanghai and 20 kilometers from Xiaoshan International Airport Hangzhou. A development principle of high-level planning, high-class construction, high-efficiency management is insisted on in the zone. Civil facilities have been set up in the first-phrase construction area of 15 square kilometers. Basic infrastructure including water, electricity, gas, road, telecom, and sewage disposal shall meet the demands of various kinds of investment projects. Complete public service facilities such as schools, hospitals, banks are available.
2. Preferential Policies:
As a seaside economically developed area, Shaoxing city will provide a lot of preferential policies for SPIZ's investors as follows:
1) Preferential Policy for using land: For the foreign-invested enterprises, the price for using land is US$9-18/sqm.
2) Financial aid and capital discount support: For the foreign invested enterprises, the local part of the tax will be totally refunded in the first two years and 50% refunded from 3rd to 5th years; For the enterprises with actual investment above $ 3 million, the local part of the tax will be totally refunded in the first five years and 50% from 6th to 10th years. Meanwhile, SPIZ Administrative Committee shall offer capital discount for the projects, which are in accordance with the governmental discount support terms, or play demonstration and promotion roles for the construction of the zone.
3) Remitting or reduction of charges: SPIZ Administrative Committee shall insist on the policy of "no fee required excluding taxes" for all the solely foreign ventures settled in the zone, namely, the fee shall be totally remitted or paid by the committee except the taxes to the central and provincial governments.
3. Preferential service:
As a branch of Shaoxing Municipal Government, SPIZ Administrative Committee directly carries out the management function of the municipal government. The Administrative Committee has an investment service center and offers qualified and efficient service for the investors sincerely.
Special policy
Shaoxing was listed by the State Council in 1992 as one of the 6 major priority cities south of the Yangtze River Delta to undertake planning and development ahead of other areas. The urban district and Shaoxing County,Shangyu City and Shenzhou City under is jurisdiction were granted by State Council in 1988 with the status as open coastal economic regions, where foreign investors, where foreign investors can enjoy a package of various preferential polices, such as 20% reduction from the current income tax rate.
Preferential Polices for Overseas Investors in Shaoxing Area Shaoxing Economic Development Zone, Paojiang Industrial Zone, Kuaijishan Tourism Resort, Shaoxing Urban District, Shaoxing, Shaoxing County, Shangyu City and Shengzhou City Other counties(cities)
Classification
Income tax rate Road, bridge, water environment protection and other projects that have at least US$30 million of investment and a long investment recovery period Approved by relevant authorities, levied at 15%
Agricultural, manufacturing projects Levied at 80% of the tariff in force 30%
Breaks in taxes Infrastructure projects With approval, projects with a term of more than 15 years are exempt from income tax for five years starting from the profit-earning year, and are taxed in half from the 6th to 10th year
Agricultural Projects Projects with a term of more than 10years are exempt from income tax for two years starting from the profit-earning year, are taxed in half in the 3rd to 5th year, and after approved, can continue to be taxed 15-30% less in the following 10 years
Manufacturing Firms Projects with a term of more than 10years are exempt from income tax for two years starting from the profit-earning year, are taxed in half in the 3rd to 5th year
Firms of Special Conditions Firms of Advanced Technology Exempt from income tax for two years and taxed in half for another 3 years starting from the profit-earning year, and after the expiration of that term, continued to be taxed in half for 3 more years
Export Production Firms Exempt from income tax for two years and taxed in half for another 3 years starting from the profit-earning year, and after expiration of that term, continued to be taxed in half if the export value accounts for 70% of that year's total output
Other Tax Preference 1.When foreign investors re-invest their profits earned from foreign-funded enterprises for a term of no less than 5 years, the collected income tax of the re-investment can be refunded by 40% and the locally retained portion by 30%; if the investment is spent in running or expanding export production enterprises or enterprises of advanced technology, the collected income tax of the re-investment can be fully refunded.
2.Except those under state regulations, export products produced by foreign-invested enterprises are exempt from export tariff, and such measures as exemption, anticipation and refunding are adopted for value added tax collected during the distribution process.
3.Imports of raw and auxiliary material by foreign-funded enterprises for the execution of export contract are exempt from import duties and import duties and import value added tax.
4.Foreign-invested projects encouraged by the state or under restriction category B and foreign-invested R&D centers are exempt from duties and VAT for equipment import; existing foreign-invested projects encouraged by the state or under restriction category B, foreign-invested R&D centers, foreign-invested enterprises of advanced technology and export production are exempt from duties and VAT for equipment import for technical renovation.
5.Foreign-invested enterprises, when buying equipment at home and when the equipment is under the duty-free catalogue, are refunded with VAT of the Chinese-made equipment in full value, and the enterprises' income tax is exempt according to relevant regulations.
6.Approved by tax authorities, foreign-invested enterprises are allowed for fixed asset depreciation in a faster rate.
7.Income of foreign-invested enterprises earned from technology transfer is exempt from business tax.
8.Encouraged and allowed foreign-funded manufacture project with term over 10 years are exempt from income tax for two years starting from the profit-earning year, and taxed in half in the following 3 years. From the third year to the eighth year, support will be given by local fiscal authority from an specially allocate fund. From the third to the fifth year, the refunding amount is the local retained portion of the total income tax paid by the enterprise in the three years, and from the sixth to tenth year, the refunding amount is 50% of the local retained portion of the income tax paid by the enterprise.
Others Preference in Land and Education 1.Land in Shaoxing Economic Development Zone and Paojiang Industrial Zone is offered at the bottom price. For projects of more than US$3 million contractual foreign in vestment, a 20% discount is given based on the concurrent price, and for projects of more than US$10 million contractual foreign investment or of the local pillar sectors, high and new technology, a certain percentage of the land payment will be refunded (the different between the base price and cost price) upon the arrival of the investment.
2.Foreign investors in the projects encouraged by Shaoxing can lease land use from the government, and the rent is totally refunded in the first five years.
3.A foreign investor who has invested over 10 million RMB in Shaoxing can choose the school or kinkergarten for his child or grandchild with the Education Green Card,without paying extha or sponsor fees.
The guidebook to handle affairs
Convenience Service Center
To improve the city's investment environment, Shaoxing has established city-level and county-level convenience service centers, where government agencies work together, with reduced examination and application process, transparent working procedures, shortened service time limit, and simplified handling procedure. Shaoxing Convenience Service Center has set up a special green channel for project investors. The centers provide convenience service to both domestic and foreign investors in a way of "one stop application, share information, simultaneous examination, time-limited completion", for a serial of formalities from project consulting, approval, enterprise registration to construction commencement.
Foreign Related Authorities
SHAOXING CONVENIENCE SERVICE CENTER
TEL：0575-88604901 FAX：0575-88604999
INFORMATION OFFICE OF SHAOXING MUNICIPAL PEOPLE'S GOVERNMENT
TEL：0575-85122064 FAX：0575-85137743
SHAOXING FOREIGN TRADE&ECONOMIC COOPERATION BUREAU
TEL：0575-85137773 FAX：0575-85148803
SHAOXING ECONOMIC&TRADE COMMISSION
TEL：0575-85157234 FAX：0575-85157014
THE TAIWAN AFFAIRS OFFICE OF SHAOXING MUNICIPAL PEOPLE'S GOVERNMENT
TEL：0575-85133412 FAX：0575-85126875
STATE ADMINISTRATION OF EXCHANGE CONTROL, SHAOXING BRANCH
TEL：0575-85113311-8171 FAX：0575-85134350
SHAOXING FINANCE BUREAU
TEL：0575-88650596 FAX：0575-88643578
SHAOXING CUSTOME OFFICE OF THE PEOPLE'S REPUBLIC OF CHINA
TEL：0575-85126660-3014 FAX:0575-85229615
SHAOXING DEVELOPMENT PLANNING COMMISSION
TEL：0575-85141093 FAX：0575-85132691
THE FOREIGH&OVERSEAS CHINESE AFFAIRS OFFICE OF SHAOXING MUNICIPAL PEOPLE'S GOVERNMENT
TEL：0575-85172957 FAX：0575-85165262
SHAOXING INDUSTRY&COMMERCE ADMINISTRATIVE BUREAU
TEL：0575-88604914 FAX：0575-88604915
SHAOXING MUNICIPAL OFFICE OF STATE ADMINISTRATION TAXATION OF CHINA
TEL：0575-85228083 FAX：0575-85228082
SHAOXING LOCAL TAXES ADMINISTRATION BUTEAU
TEL：0575-85126660-3014 FAX：0575-85229615
CHINA SHAOXING INSPECTION AND QUARANTINE
TEL：0575-88611333-292 FAX：0575-88657110
SHAOXING MUNICIPAL INVEST PROMOTION AUTHORITY
TEL:0575-88645762 FAX:0575-88645950
Service Organizations
SHAOXING OVERSEAS INVESTED ENTERPRISE ASSOCIATION
TEL：0575-85138154 FAX：0575-85148803
SHAOXING COUNCIL FOR PROMOTION OF INTERNATIONAL TRADE
TEL：0575-85124139 FAX：0575-85132580
SHAOXING INTERNATIONAL EXCHANGES SERVICE CENTER
TEL：0575-85154696 FAX：0575-85154295
SHAOXING HUMAN RECOURSE EXCHANGE CENTER
TEL：0575-88575111 FAX：0575-85224242
SHAOXING LABOR FORCE MARKET
TEL：0575-85172129 FAX：0575-85154787
SHAOXING INTERNATIONAL LOGISTICS CENTER
TEL:0575-88132563 FAX:0575-88132561
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