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Policies of Xi¡¯an Municipal Government to Encourage the Development
of Non-Governmental Economy |
¡¡¡¡According to the ¡°Several Opinions on Further Accelerating the Development of Non- Governmental Economy¡± (Muni. Issuance [2002] No.18, issued on Dec. 25, 2002) of Xi¡¯an Municipal Committee of CPC and Xi¡¯an Municipal People¡¯s Government, non-governmental economy enjoys the following policies:
¡¡¡¡1. Trades, commodities and items not forbidden with public proclamation by State laws, regulations and policies shall be opened to non-governmental capitals; The preferential policies in the relative fields are also applicable to non-governmental investment; Encourage and lead non-governmental capitals to the construction of operational infrastructure and public utility projects by the means of individual investment, cooperation, joint venture, share, franchised operation etc.
¡¡¡¡2. During establishment of small company enterprises with a registered capital of not more than RMB 50,000 Yuan (including 500,000), if there is difficulty in funds, the capital cash could be divided within a three-year period. However, the first investment should be no less than 30% of the total. The enterprise is obligated for its liability as per the value of registered capital before completion of capital in cash input.
¡¡¡¡3. Service period of employees of non-governmental corporations who are enrolled by governmental organizations, transferred or employed by State-owned enterprises who have participated in various insurances such as basic pension, unemployment, medical care, industrial injury, bearing etc. shall be calculated continuously including the period they work in the non-governmental corporations after verified by the municipal departments of personnel or labor and social securities.
¡¡¡¡4. Hi-tech enterprises initiated in Xi¡¯an Hi-tech Industries Development Zone and Xi¡¯an Economic and Technological Development Zone by those who studied abroad shall be provided RMB 50,000 to 100,000 Yuan for start-up funds or low-interest loans. Hi-tech achievements with independent patents which have been verified by the municipal science and technology administrative departments and will be transferred to production in non-governmental sci-tech enterprises of Xi¡¯an shall be arranged as the planned governmental program of various technological and industrial development in priority.
¡¡¡¡5. Non-governmental enterprises are encouraged to set up corporate groups. For those with a registered capital of over RMB 10 million Yuan of the core enterprise and with more than two close enterprises, and for those groups with a total registered capital of over RMB 20 million Yuan of the core and close enterprises together, registration shall be made directly in Administration of Industry & Commerce.
¡¡¡¡6. Besides the trades limited by the State, if the proportion of unemployed people that a newly opened non-governmental service enterprise arranged the very year exceeds 30% of its total staff with a three or more-year labor contract signed, the business tax, income tax, city maintenance & construction duty as well as education-added duty within three years shall be exempted after verified by labor and social security department and audited by taxation bureau.
¡¡¡¡7. Non-governmental domestic-funded enterprises whose major businesses are included in the ¡°Catalog of Industries, Products and Technology Encouraged Emphasizingly by the State (2000 version)¡± and whose income from the major businesses occupies over 70% of its total income, shall be collected a corporate income tax as per the reduced rate of 15% from 2001 to 2010 after audited and confirmed by the taxation bureau. Meantime, for newly opened non-governmental domestic-funded enterprises engaged in basic industries such as transportation, power, water resources, post etc. in Xi¡¯an with its income from the above mentioned businesses occupying over 70% of the total, corporate income tax shall be exempted for 2 years and collected in a half from the third to the fifth year, starting from the day of production operation, after audited and confirmed by the taxation bureau.
¡¡¡¡8. As for newly opened non-governmental enterprises or operation units engaged in public utilities, commerce, material business, foreign trade, tourism, warehouse, service to the residents, foodstuff and drinking, educational, cultural and public health enterprises which have independent accounting, the corporate income tax shall be reduced or exempted for one year from the day of opening after reporting to taxation bureau in charge for approval. For newly opened non-governmental enterprises or operation units engaged in consulting, information, technical service etc. which have independent accounting, the corporate income tax shall be exempted for two years from the day of opening. For newly opened non-governmental enterprises or operation units engaged in traffic, transportation, post and telecom which have independent accounting, the corporate income tax shall be exempted for the first year and collected by 50% during the second year of its operation.
¡¡¡¡9. The legal representatives who are shareholders or starters of enterprises in Xi¡¯an and who have invested over RMB 500,000 Yuan in projects that have gone into production, opened or operated for two years or longer, and management personnel of these enterprises with senior & middle professional titles, as well as their households of enterprises could be transferred as registered citizens of Xi¡¯an. For those acquire, merger or lease state-owned enterprises, accept and arrange over 50 unemployed workers could be given a quota to receive several production, technical and management personnel of elsewhere as per the demand.
¡¡¡¡10. Non-governmental enterprises enjoy the same policies as state-owned enterprises during reporting of technical programs, application for technical transformance projects, appraisal of hi-tech enterprises and products, assessment of research results, rewarding of preferential taxation policies, application of technical outlay, appraisal of the professional title of senior technical personnel, protection of intellectual property etc., and will report directly to relevant municipal or district (county) departments.
¡¡¡¡The above policies are applicable to self-employed businessmen, private enterprises, non-governmental sci-tech enterprises, natural person, joint stock & cooperative stock enterprises held by non-governmental enterprises, and state-owned non-governmental enterprises and public-owned non-governmental enterprises. |
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