1. Government departments related to foreign investment shall implement administration and management opening and service pledging system,  making business contents,  procedures,  standards and time limits known to the public,   implementing “ One Window” to the public,  providing“streamlined”service in order to simplify procedures and increase efficiency.   During official working days they cannot use any excuse to provide service to foreign businessmen.

2. The administrative fee-collection concerning enterprises with foreign investment shall all implement the system of fee-collection license,  special bill and fee-collection registration card.  Enterprises with foreign investment that encounter unreasonable charges,  fines,  fund-raising,  charges and “denotions”,  fund or capital-capital-collecting may refuse to pay and may also appeal to Liyang Foreign Economic Relations and Trade Commission,   Finance,  Supervisory and Price Departments which shall give prompt reply and resolution.

3. Relevant departments in charge shall guide,  help,   coordinate,  supervise and serve the enterprises with foreign investment,   but cannot interfere in the normal production and management activities of the enterprise, creating an investment, management and production environment in accordance with international practice.

4. The income tax of those industrial and agricultural production projects listed as encouragement type in “ Catalogue for Foreign Investment Areas ”issued by the State Council and whose cooperation duration is over ten years shall be exempt in the first two profit-making years, and shall be reduced by half in the next three years.  During the period of tax half -reduction, 50% of the income which belongs to local financial revenue be returned to the enterprise after the application of the enterprise and the approval of the city government.

5. The income tax of nationally encouraged production,   development enterprise with foreign investment solely or greater than 60% of the total shares,  and with the registered capital over 5 million U. S.  dollar, and whose duration of cooperation exceeds ten years shall be exempt in the first five profit-making years,  and shall be reduced by half in the next five years,  The income tax of above –mentioned enterprise, but with the registered capital over 3 million U. s.  dollar and under 5 million U. S.  dollar shall be exempt in the first three profit-making years,  and shall be reduced by half in the next five years.  The preferential margins which exceed national stipulation shall be levied by the tax department and returned to the enterprise.

6. The product added-value tax of the enterprise with foreign investment which belongs to world large corporation, world famous brand or new and high technology filling national gap and greatly promoting the local economy, or has a registered capital of above 3 million U. S.  dollar with foreign investment solely or greater than 60% of the total shares, shall be first three running years by the tax department, and 50% of the local retention of annually-levied added value tax shall later be returned to the enterprise by the financial department.

7. Enterprises with foreign investment are encouraged to increase capital and enlarge share. The newly-increased income tax of the production enterprise which increases investment and enlarges production scales shall be exempt in the first two profit-making years, and shall be reduced by half in the next three next three years,   based on the income tax levied in previous years.

8. The enterprise income tax of the enterprises with foreign investment in the construction of infrastructure facilities like road shall be levied at the rate of 15%, after the approval of the provincial tax department. The income tax of those enterprises whose duration of cooperation exceeds 15 years shall be exempt in the first five profit-making years,  and shall be reduced by half in the next five years.   Foreign business people who invest in the construction of enterprise and implement transportation infrastructure facility projects can take full advantage of this facility and operate according to the law service facility in certain scope. Also,  under the same condition,  they have the priority to be granted land use right along the transportation infrastructure facility and can be offered preferential land –transferring prices. Completed transportation infrastructure facility which is approved to collect fees and rights of use, management or share within cooperation scope are permitted to transferred non gratuitous to foreign business people.

9. After the application of Chinese investor, the real estate tax of industrial production enterprise which is invested by the Chinese party in the form of self-owned real estate shall firstly be levied and later be returned in transferring of names of the real estate.

10. Foreign investment project which imports high and new technology to develop agriculture shall be exempt from relevant tax fees and construction supporting fees after approval. The supply of land can adopt the form of transferring or yearly leasing. Foreign business people can acquire land-use right by means of land - transferrings or leasing stipulated by the nation. Development of waste mountain and uncultivated land shall be exempt from agriculture tax and forestry specialty tax.

11. Production enterprise with foreign investment solely or greater than 60% of the total shares,  and with the registered capital over 3 million U. S.  dollar, may be exempt from various local planning fees collected by the city after the discussion of the regular meeting of city government. For other enterprises with foreign investment, these fees may be reduced by half.

12. Land-transferring price for the foreign investment project including solely foreign-invested project and holding company set up by using idle capital of the Chinese party shall adopt the lowest protection price and shall be exempt from land reclamation fee.  Water, electricity and telecom capacity added fees which have been paid shall not be levied again.

13. Encouraged project with foreign investment can be exempt from land use fee in five years from the date of acquiring land usr right after the application of the enterprise and the approval of land department.

14. For enterprises invested in and established by companies, enterprises or individuals from Hong Kong Macao, or Taiwan, or Chinese citizens living abroad, matters shall be handled by reference to these to these stipulations.

15. These stipulations are applicable to those foreign-unvested enterprises which are approved to open business after January 1, 1999During the period of execution of these stipulations, if governments of higher level issue more preferential policies,  those policies shall be executed instead.