Policies Concerning Investment

Major incentives

    Foreign funded enterprises in Jimei are entitled to preferential income tax rate of 15%, currently in practice in Xiamen SEZ, and exemption from local income tax. Foreign investment projects or projects invested by compatriots from Hong Kong, Taiwan or Macao shall receive further preferential treatment as follows:
    1. Productive enterprise with a registered operation period of over 10 years shall be exempt from income tax for the first two profit-making years and shall enjoy a 50% tax cut for the following three years.
    2. Enterprise with a yearly export volume making up over 70% of the enterprise’s total output value shall be eligible shall be eligible for a preferential income tax rate of 10% in the year after the expiry of the above-mentioned period of tax exemption and tax cut.

    3. Enterprise certified by authority as technologically advanced shall enjoy the same preference of 10% income tax rate in the successive three years after the expiry of the above-mentioned period of tax exemption and tax cut, as long as the enterprise is verified as retaining the same advanced nature.
    4. Enterprise of service nature which has involved an investment of over 5 million US dollars and which has been in business for over 10 years shall be exempt from income tax in the first profit-making year and shall enjoy a 50% tax cut in the following two years.
    5. Enterprise that reinvests its profits in the existing enterprise or uses its profits as capital to set up another enterprise wish an operation period of over 5 years shall enjoy a 40% refund of the tax on the reinvested profits. If such profits are reinvested in establishing or expanding an exportoriented enter-prise or a technologically advanced enterprise with an operation period of over 5 years shall enjoy a 40% refund of the tax on the reinvested profits.
    6. Enterprise to import commodities listed under the encouraged categories in Sector Guide to Foreign Investments, not including those listed in the Index of Commodities Dutiable for Foreign Investment Projects, shall be exempt from import tariff and VAT.
    7. Enterprise exporting commodities either owner operated or on commission shall be entitled to the preferential treatment of tax exemption, offset or refund in accordance with the specifications of the tax policy.
    8. Enterprise whose product has won brand name in Xiamen, Fujian, or China shall receive from the Xiamen Municipal Government a lump sum award of 30000 yuan, 50000 yuan and one million yuan Respectively.

Foreign Exchange

Foreign-funded enterprises are free to decide whether to apply to state-owned banks in China or foreign banks in or out of China for foreign exchange loans; they may also ask foreign enterprises or individuals abroad for the loan.

Land Use

Enterprise with land use right obtained through paid land transfer shall have the right to transfer, rent out, or leave as a pledge its land, in accordance with the regulations stipulated in the land transfer contract. The maximum period of use is 50 years for land used for industrial, educational, scientific or cultural purposes; 40 years for land used for commercial, tourist, or recreational purposes; and 70 years for land used for residential purpose. Land used for other purposes shall have a maximum period of 50 Years.

Labour

The enterprise is free to advertise jobs through out the country or to employ personnel from abroad. NO restrictions shall be imposed when transferring from elsewhere professional with college or higher educational background.

Environmentalist

Construction projects shall be subject to the environmental effect appraisal mechanism. Interprise in charge shall submit, during the phase of project feasibility study, the Report on the Environmental Effects to the competent environmental protection authority for approval.

Entry and Exit

Apart from routine immigration management, Xiamen Port grants visas or travel documents on the spot. Aliens may apply on the strength of valid passports on their arrival at Xiamen Port for 5day SEZ Visitor Visa. Overseas Chinese and compatriots from Hong Kong and Macao may apply on the strength of their valid residential papers on their arrival at Xiamen Port for the P.R.C. Entry/Exit Permit. Taiwan compatriots may apply on the strength of their valid passports on their arrival at Xiamen Port for Travel Document for Taiwanese Residents in the Mainland (SingleEntry); or on the strength of the 5-year valid Travel Document for Taiwanese Residents in the Mainland for one entry visa (valid for 3 months).