Special policies

The main requirement to set up your company in Qingdao HuaShan Industrial Park is to carry out a minimum investment of USD 150,000. For trading companies only a minimum investment of US$ 20,000 is necessary from the beginning of January 2005. All enterprises that carry out a minimum investment of US$ 500,000 will enjoy following preferable policies to ensure a successful introduction in HuaShan:

1. Tax ( effective for the establishment until 30.12.2007)

• Foreign enterprises in manufacturing field with a fixed operational period of over 10 years will be exempted from the enterprise income tax in the first two profit-making years and allowed 50% reduction of the income tax from the third profit-making year to the fifth profit-making year. After expiration of the exemption period, the enterprise income tax will be levied by 24%.
• After the expiration of the period of reduction or exemption of enterprise income tax, foreign enterprises whose exportation amounted 70% or above of the total production value of year can enjoy 50% reduction in income tax.
• Foreign enterprises with advanced technology which remain to be a technologically advanced after the expiration of tax exemption and reduction period, will enjoy 50% income tax reduction for another three more years upon approval of tax authority. Foreign enterprises engaged in agriculture, forestry and animal husbandry will enjoy a reduction of 15% to 30% within ten years after expiration of tax exemption and reduction period in accordance with the law of tax.

Since 1st. Janury 2008, the new Tax Law regulates the equality of the taxation between Chinese and foreign Enterprises.

2. Land police

• The land using rights of foreign enterprises are protected by law. The maximum land using period is 50 years for industrial projects and 70 years for real estate projects.
• Once foreign enterprises obtain land use right, they are allowed to sell, rent, exchange, present, and mortgage the land within the using period.

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