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●Policy System
'Regulation of Foreign Investment Direction' proclaimed by the State Council of P.R.C.
'Guide Catalogue of Foreign Investment Industry'
'Superior Industry Catalogue of Foreign Investment in Mid and West China'
Regulations of Encouraging the Investment from Foreign countries, Hongkong,Macau and
Economic Entities at home in Datong
'The Draft of Preferential Policies for the improment of Industrial Economic Development
and realizing the "6656" Project in Datong'
The Rreferential Policies of Economic and Technological Development Zone and district and
counties of Datong'
●Guide Orintation
We encourage investment both from at home and abroad in the projects of our city, such as
energy, transportation, machine, metallurgy, construction material, chemic industry, food
industry, farming, city foundation apparatus building and technology innovation for our
enterprises.
We encourage people both at home and out abroad to invest to Enterprises of export
Production and advanced technology.
We encourage investment both from at home and out abroad to attend in the reformation of
the state run enterprises in our city and rent the stocks of our enterprises of many kind.
●Encouragement Policy for Taxation
Item1
The foreign invested productive enterprises, which will be operated for 10 years above ,
shall enjoy remitting of enterprise income tax of the first and second year and enjoy the
half reduction of enterprise income tax from the third to fifth year since the year of
profit making , if the technologically advanced enterprise still remains as the same as
exemption/reduction term, the half reduction payment term of enterprise income tax can be
prolonged for another three years . If the rate of taxation is lower than 10% after the
expiration and reduction term , if in the years when the output value of the expoit
products of the enterprises can be achieved to or above 70% of the total output value ,
the enterprises can be allowed to pay half income tax . If the rate of taxation is lower
than 10% after the half reduction term , the enterprise income tax shall be paid in a
taxation rate of 10%.
Item2
The foreign invested enterprises encouraged to be established by the State , can enjoy the
reduction and the enterprise income tax in taxation rate of 15% for three years from the
date when the period of present tax preferential policy expires . During the preferential
period of the tax , if the enterprise is also affirmed and an advanced technology
enterprise or its annual product -export-value is over 70% of the whole annual product
value , the enterprise can be allowed to pay half the enterprise income tax according to
the provisions stipulated in the law of tax . But the rate of taxation with a half
reduction cannot be the lower than 10%.
Item3
If the investors of the foreign invested enterprises directly invest their gained profit
into the same enterprises and increase their registered capital or use it to initiate
other foreign invested enterprises , which will be operated for no less than 5 years , 40%
of the income tax that has been paid for the reinvestment part shall be reimbursed after
the application for this provided by the investors being approved by the tax authorities .
If the foreign investors directly reinvest to initiate or extend enterprises for making
export products or technologically advanced enterprises that come up to relevant standards
by affirmation , total of the income tax that has been paid for the reinvestment part
shall be reimbursed in accordance with the State provisions concerned .
Item4
If the technology-developing fee of a foreign invested enterprise is over 10%(included)
higher than last year , the income tax for the enterprise to be paid in the same year can
be deducted by 50% of the technology-developing fee actually used on the approval of its
application by tax authorities . No income tax can be deducted if the enterprise is in
deficit .
Item5
If foreign invested enterprises import machine equipment , spare parts , components ,
supplementary materials or packing stuffs within the total invested amount or total amount
with additional portion which has been approved , the importation shall be exempted from
import tariff and value-added tax . If the foreign invested enterprises purchase , within
the total invesed amount , the domestic equipment which belongs to the catalogue of
tax-free equipment provided , the enterprises shall , with approval by the tax authorities
, be reimbursed for all domestic equipment value-added tax , and the enterprise income tax
they paid can be deducted according to the relevant stipulations .
●Land
Preferential Policy
Item1
The enterprises with foreign investment that require to use land shall get the right of
land use through the from of allotting, granting or renting according to the relative laws
. The enterprises that invest in thefield of industry , commerce , finance , tourism ,
service trades or commercial housing shall get the right of land use through the from of
granting . Enterprises tat invest in agriculture , energy resource , communications ,
water conservancy projects , projects , urban infrastructure construction and other public
uutilities shall get the right of land use through the form of allotting .
Item2
The land use fee for the foreign invested productive enterprises and non-productive
enterprises can be levied in a half reduction .
Item3
The land use fee can be exempted for the enterprises with export-oriented prducts and
technologically advanced ones, for some financial projects with an approval by the
authorities concerned and other enterprises being engaged in projects of farming and stock
raising foreign and domestic trades , tourism and infrastructure construction such as
transportation , energy resource and communications .
Item4
The payment for the right of land use and fee of land renting can be exempted for the
enterprises engaged in developing and utilizing the desolate mountains , slopes , beaches
and ditches or in innovating and utilizing the wasteland .
Item5
The major industrial outside-invested enterprises encouraged by the State , if getting
land use right by the form of granting , shall be exempted by 50% of the premium rent for
land use right . The outside-invested enterprises that get the use right by the form of
granting , if difficult to pay the premium rent for land use right in a lump-sum for the
time being , can pay granting charges in installments during first 3 years in
granting-period .
Item6
The right of land use , which is obtained by outside-invested enterprises in a granting
form , is permitted to be transferred , rented or mortgaged in accordance with the
relative laws after the total payment of the premium rent for the right of land use .The
right of land use which is obtained by foreign invested enterprises in an allotting form
is also permitted to be transferred , rented or mortgaged in accordance with the relative
laws after total payment of the premium rent for the right of land use .
●Preferential Policy of 6656 1ndustry
and Economy Project
Item1
This preferential policy is for the projects of newly built and expanding industry (coal
producing , washing and choosing , power projects not included ) of our city .
Item2
The project needed land will be given the right of use free of charge if it certifies with
the policy . If not , there will be a 60% preferential in rental and the other 40% is
permitted to be payed later . The certificate of land use is processed by the city and
county government and will be delivered to the entrepreneur .
Item3
Within three years sine the operation, the city and county government will give a bonus of
different proportion from the value-added tax which the government enjoy.
(1)Project of RMB 100 million RMB 500 million has a bonus of 50%.
(2)Project of RMB 500 million RMB 1 billion has a bonus of 70%.
(3)Project of above RBM 1 billion has a bonus of 100%.
Item4
Within five years since the operation , the city and county government will give back to
enterprises full amount of the income tax which they enjoy and the amount will be deducted
in to half since the sixth to the tenth year.
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