Policies and regulations on encouraging foreign investment in Xinjiang Uygur autonomous region
In order to encourage foreign investors to invest in Xinjiang Uygur autonomous region and protect the legitimate rights and interests of investors, Xinjiang government issued Policies and regulations on encouraging foreign investment in Xinjiang Uygur autonomous region in 2000, in accordance with various policies including the Law of the People's Republic of China on Regional National Autonomy, Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures and Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures .
These policies and regulations apply to all enterprises and business projects invested by foreign companies, economic organizations and individuals in the autonomous region.
Foreign investors may conduct all the industrial projects approved in the National Foreign Investment Industrial Guidance Catalogue. The region encourages foreign investors to invest in the following key industries:
(1) Comprehensive development of agriculture, forestry and animal husbandry and deep processing of such products;
(2) Construction of infrastructures such as water conservancy, energy and transportation;
(3) Ecological environment construction and economic construction in small towns;
(4) Light industrial products and special foods with high technology content and high added value; deep processing technology and development of cotton, wool, silk and hemp, high-simulation chemical fiber production, fabric printing products;
(5) Petrochemical, fine chemical, and agricultural chemicals;
(6) Exploration, mining and processing of non-ferrous metals, ferrous metals and non-metallic minerals;
(7) New building materials and energy-saving building materials;
(8) New materials, bioengineering technologies (excluding genetic engineering technology), information and communication system network technologies, resource recycling and comprehensive utilization technologies, energy conservation technologies, environmental pollution control projects, and monitoring and treatment technologies;
(9) Development of tourism resources and construction of tourist attractions.
With the approval of the state government, cities can conduct pilot projects for the development of commerce, foreign trade (general trade, land-side trade), finance, and travel agencies. Investors and enterprises in above fields enjoy less strict requirements and conditions. The conditions for the establishment of joint ventures in the Foreign Investment Industrial Guidance Catalogue will be relaxed.
The establishment of a foreign-invested enterprise with an operation time of more than 10 years shall be exempted from local income tax in the income tax of foreign-invested enterprises and foreign enterprises.
Establishment of enterprises with advanced technology by a foreign investor is exempted from or collected less income tax according to local tax law. If an enterprise maintains to be high-tech enterprise after a certain period of time, the income tax will be reduced to half for three years with the approval of tax administrations. Export enterprises that annually export 50 percent of its products will have half of their income tax collected.
Foreign-invested enterprises engaging in agricultural production shall be exempted from agricultural tax for 5 years.
Foreign enterprises invested more than $5 million in above encouraged industries can enjoy a financial subsidy of no more than 10 percent of the value-added tax paid by the enterprise within five years.
Foreign-invested enterprises engaging in the exploitation of mineral resources (except for oil and natural gas resource exploitation projects) are freed from resource tax for five years from the date of production. Enterprises engaging in comprehensive mining and recycling of associated minerals enjoy reduction of resource compensation fees.
Costs of legal geological exploration activities can be amortized as deferred assets.
A foreign-invested enterprise with self-use properties will be exempt from real estate tax for five years from the month of operation and collected half of the tax in the next five years. For foreign-invested enterprises engaging in real estate development and operation, the land value-added tax shall be suspended for five years from the month of production.
Foreign enterprises will be freed from vehicle license tax from the month they received business licenses for 10 years.
Foreign-funded enterprises engaging in the construction of infrastructure projects in areas such as water conservancy, energy and transportation may obtain rights to use state-owned land according to administrative allocation.
A foreign-invested enterprise may acquire the right to use state-owned land by lease (except for real estate development). For enterprises with an operation time of more than 20 years, the land rent (land use fee) will be exempted for five years from the date of obtaining the land use right. For enterprises engaging in industries encouraged by this regulation, 50 percent of the land rent (land use fee) will be exempted for the next five years.
Foreign-funded enterprises that transfer the right to use state-owned land. For enterprises with an operation time of more than 20 years, the land rent (land use fee) will be exempted for 25 percent of the charge of land use right. For enterprises with an operation time of more than 30 years, 30 percent of the land use right transfer fee will be exempted. Forty percent of the charge of land use right will be exempted for non-agricultural wasteland and barren hills outside the urban planning area.
If a foreign-invested enterprise engaging in industries that are encouraged by the government and transfers state-owned land use rights with a business time of more than 30 years, 30 percent of the charge of land use right transfer fee is exempted, and the rest of the land use right transfer fee can be paid in installments within five years from the month of production.
For Chinese-foreign joint ventures or cooperative enterprises, the Chinese partner may invest with land assets as national stock.
For foreign-invested enterprises engaging in industries that are encouraged in the regulation, the land used may be transferred or collected at the lower limit of the local land rent (land use fee).
If a foreign-invested enterprise obtains state-owned land by way of transfer, it may transfer, lease or mortgage the land use right after paying the transfer fee. If the state-owned land use right is obtained by administrative transfer, the enterprise may transfer, lease or mortgage the land use right after completing the transfer procedure.
When a foreign-invested enterprise obtains the right to use state-owned land by way of assignment or lease, the land may be renewed after approval according to the law.
Other preferential policies for foreign-invested enterprises
(1) Foreign-invested enterprises that establish businesses in Xinjiang with an investment ratio of more than 25 percent are treated as foreign-invested enterprises and enjoy corresponding preferential policies.
(2) Foreign-invested enterprises shall be collected half of the urban infrastructure supporting fees.
(3) Apart from the cost of the work, if there are any other standards for administrative fees and charges, the fee shall be reduced by half on the basis of the lower limit, and the fee shall be reduced by half if there is no such amount.
(4) The fees paid by foreign-invested enterprises in production and operation are treated in the same way as that for state-owned enterprises.
(5) For intermediaries and individuals that introduce foreign investment, appropriate commissions or bonuses may be paid by the Chinese party in accordance with the actual funds in place.
The relevant government department shall, in approving the foreign-invested enterprise project and handling relevant certificates, reply within five workdays from the date of application. If the information is complete, the department shall complete the approval and registration procedure within 10 working days. If there is no particular reason for not replying within the prescribed time limit, it shall be regarded as a permit. For projects above the designated size and listed as B Catalogue in the National Guidance Catalogue for Foreign Investment Industries, the materials shall be submitted to the state government within 15 working days.
The procedures for entry and exit of foreign-invested enterprises shall be handled in accordance with the principle of equal priority.
Priority shall be given to ensuring the supply of water, electricity, warmth and gas required for the production and operation of foreign-invested enterprises, and preferentially arranging land use, transportation plans and entry and exit quotas.
It is forbidden for foreign-invested enterprises to apportion, charge, fine, and indiscriminate inspections.
In order to alleviate the burden on foreign-invested enterprises, in addition to the laws, regulations, rules and the charging items issued by the people's government of the autonomous region, all localities do not receive the toll collection items, and all of the ones that have been issued are canceled.
All kinds of fees involving foreign-invested enterprises shall be implemented in accordance with relevant state regulations, including the Price Law of the People's Republic of China and Regulations on the Administration of Administrative Fees in Xinjiang Uygur Autonomous Region. When performing the official duties, the charging unit must present the Charging Permit issued by the State Development Planning Commission and the Municipal Bureau of Price, and issue the legal bills. Foreign-invested enterprises have the right to refuse payment for violations of the fees stipulated in the preceding paragraph.
The lawful rights and interests of foreign-invested enterprises shall be protected by law. No department or individual may interfere with the legitimate business of the enterprise. When the legal rights and interests are infringed, the foreign-invested enterprise may apply for reconsideration or file a lawsuit according to law.
(This English version is only for reference. To learn more, please refer to the authoritative Chinese version)