International coordination of tax incentives is an important link in maintaining the world economic order and improving the tax system of each country. If national tax preferential policies go their own way without international coordination, practice has proved that it will lead to the following consequences: weakening the effectiveness of tax preferential policies; distorting international competition and disrupting the economic order; and restricting the implementation of domestic tax policies.
1, the main content of international coordination of tax incentives and its general mode
(1) international coordination of tax incentives has an all-round feature, which involves the main aspects that constitute the elements of the tax system
the content of international coordination of tax incentives can be divided into three major categories: the first one is the coordination of tax types, the second one is the coordination of tax rates, and the third one is the coordination of exemptions and reductions. The tax types available for international coordination are generally characterized by strong foreign-related relevance, strong interest intuition and strong mobility. Examples include tariffs, corporate income tax, and personal income tax. Since the tax rate is the centralized embodiment of tax interests, the international coordination of tax types is often the essence of tax rate coordination. The international coordination of tax types and tax rates is subject to the constraints of domestic tax laws, while tax relief has the flexibility to play the role of adjusting and supplementing the tax interests of various countries in the international coordination. The following tariffs and corporate income tax as an example to further understand the main content of the international coordination of tax incentives.
①International Coordination of Tariff Preferential Policies
Tariff is the earliest tax type adopted by all countries in the world, and its universality is far more than any other tax type, which is typical of the world. The core of tariff coordination policy is preferential tariff coordination, that is, after tax coordination between countries, according to different international relations, to develop different tariff preferential treatment, in order to reflect the principle of reciprocity and mutual benefit, and to promote the development of **** the same interests. There are three forms of preferential tariffs:
First, specific preferential tariffs are a kind of tariffs that designate the country of enjoyment. The most influential specific preferential tariff is the preferential system among the Lomé Agreement countries, which is a specific preferential tariff unilaterally provided by the Euro*** body to the developing countries of the African, Caribbean and Pacific regions participating in the agreement.
Secondly, the Generalized System of Preferences (GSP) is a system under which developed countries generally grant preferential tariff treatment to products, especially manufactured and semi-manufactured products, imported from developing countries or regions.
Thirdly, Most Favored Nation (MFN) treatment is the automatic application to one of the contracting parties of the preferential treatment now and in the future accorded to any third country by the other party.
②International Harmonization of Tax Incentives for Corporate Income Tax.
Corporate income tax is the main form of direct tax, and in the field of international taxation, the characteristics of corporate income tax represent the *** same role as other direct taxes. Taxation of cross-border income and assets has been an important tool for countries to influence international investment. Both developed and developing countries have tax incentives to attract foreign investment, and these tax incentives generally include tax abatements, tax exemptions, tax deferrals, reduced tax rates, periodic relief, accelerated depreciation, investment relief, reinvestment refunds, tax exemptions for repatriation of dividends, allowable deductions for expenses, and set-aside for investment in a variety of forms. Whether these preferential measures can ultimately achieve the effect of encouraging or attracting foreign investment, the key also lies in the coordination between the investing country and the host country in terms of tax incentives, and the best form of such coordination is the signing of bilateral tax agreements.
(2) The international coordination of tax incentives can be divided into three modes according to the degree of coordination, i.e., the consultation mode, the convergence mode and the integration mode
1) Consultation Mode: under the premise that the coordinating countries do not change the basic tax system in their own countries, they only consult on the method of tax collection and tax incentives of each country in order to reach a **** understanding. The basic feature of the consultation model is that it does not touch the tax systems of the contracting countries, and the contracting countries can, to a considerable extent, retain their respective fiscal sovereignty and decide independently on the basic elements of their respective tax systems, such as the types of taxes, tax bases and tax rates, and do not have to ask the contracting countries to limit the characteristics of the differences between their tax systems. Since the consultative model allows countries to retain differences in their tax systems, it is easily accepted by the international community. The main form of the negotiated model is the international tax agreement. International tax agreements can be used more flexibly to deal with specific tax issues related to trade relations between the contracting parties. For example, in promoting the economic development of underdeveloped countries, tax coordination between the contracting parties makes it possible for the capital-exporting countries to recognize and guarantee the tax incentives adopted by the underdeveloped countries in order to attract the inflow of foreign capital in the international tax agreements determined by the two parties, so that the proceeds of these tax incentives will not be absorbed by the tax system of the exporting countries.
②Convergence mode: refers to the countries concerned through the binding effect of certain **** the same rules or international practice, so that their respective tax systems have some of the same or similar characteristics. Convergence mode is characterized by the unity of the tax model and the similarity of tax administration. It can be seen that the degree of harmonization of the convergence model is higher than that of the negotiation model, because the negotiation model does not require the elimination or reduction of the differences in the tax systems of the countries, but only requires negotiation to resolve the conflicts arising from these differences; the convergence model requires the elimination of these differences in certain aspects, such as requiring countries to formulate tax policies that are broadly similar to each other in terms of certain tax types, tax rates and taxing methods, as well as tax incentives, and so on. The form of the convergence model can be through the negotiation channel between countries or through the conscious arrangement of certain international organizations. The World Trade Organization is an institution dedicated to promoting tax convergence, for example, in the area of tax incentives, the organization's member countries are required to give and enjoy the established form and degree of tax incentives.
③Integration mode: it is the highest form of international coordination of the tax system. The strict form of this model requires that the framework of the tax system between the countries concerned is exactly the same, there is no difference. As a transitional form of tax integration, the less strict integration mode also requires that some tax types, tax bases, tax rates, tax calculation methods and tax incentives in the tax structure be identical.
The above three models clearly provide a workable basis for the international harmonization of tax incentives. Therefore, the most effective way of international coordination of tax incentives is through joint agreements and cooperative organizations between the countries concerned. There are three existing ways of international coordination of tax incentives, namely, international tax agreements, regional tax alliances and the World Trade Organization.
International tax agreement is an agreement or treaty concluded by sovereign countries through negotiation according to the principle of reciprocity in order to coordinate their tax relations and deal with tax-related problems. International tax agreements are an important part of international tax coordination, and their basic starting point is to coordinate the distribution of tax benefits between contracting parties, reduce the tax burden of multinational taxpayers and enhance international economic exchanges. With regard to the international coordination of tax incentives, the tax concessions and credits provided for in international tax agreements enable tax incentives to truly play their role in encouraging investment. In addition, in order to prevent multinational taxpayers from obtaining the tax preferential treatment provided by both contracting parties to the tax agreement to their residents mutually by abusing the tax agreement, they can be prevented by signing bilateral tax agreements and additional provisions.
Regional tax alliance refers to the coordination of tax policies among the member countries of a regional economic grouping, which is used to promote the economic development and trade level of each member country. Regional economic blocs can be divided into five categories according to their levels, namely, free trade zones, customs unions, **** the same market, monetary unions and economic and political alliances, and all forms of regional economic alliances involve the international coordination of tax preferential policies.
The World Trade Organization, as a multilateral trade coordination mechanism, coordinates the tax policies of countries from a global perspective. The multilateral trade rules determined by the World Trade Organization has become the international community widely accepted *** with the rules of the World Trade Organization involved in the international coordination of tax incentives are mainly manifested in three aspects: First, the most-favored-nation treatment and the principle of national treatment. The principle of most-favored-nation treatment requires a country to treat specific foreign products equally in terms of tax treatment in import and export; the principle of national treatment requires that tax preferences within a country are automatically enjoyed equally by foreign taxpayers. Second, tariff concession provisions. The GATT requires parties to negotiate tariff concessions. Third, tax concessions for exports. The GATT provides that the price at which internationally traded goods enter the market of another country shall be duty-free.
2. China's Practice and Development Ideas on International Coordination of Tax Preferential Policies
In the past 20 years since China's economic reform, the export-oriented economy has been developing greatly, and domestic and foreign economic interpenetration has become an objective reality. Under this circumstance, the tax preferential policy has developed from purely considering the domestic demand to taking into account the international economic demand. This should be fully understood, otherwise, the good motives for formulating preferential tax policies will be contradicted with the actual results, forming an obstacle to the process of internationalization of the economy. At the early stage of reform and opening up, in order to attract foreign investment and advanced technology, China provided many tax preferences in its foreign-related tax system and set up a number of special economic zones and development zones with special tax preferences. This has proved to be a positive contribution to the development of China's export-oriented economy. In the 1980s, with the increase of international economic exchanges, China began to sign international tax agreements with foreign governments to cooperate and coordinate with each other in the field of tax preferences. However, China's international coordination of tax incentives still lags far behind the development of foreign economy and international exchanges, which is mainly manifested in the following two aspects:
(1) Tax incentives are too many and non-transparent, which increases the difficulty of international coordination
According to the provisions of the new tax system of 1994, domestic-funded enterprises and foreign-funded enterprises are entitled to different tax incentives, especially for foreign-funded enterprises, not only the central policy, but also the tax incentives for foreign-funded enterprises, which have not only the central policy, but also the tax incentives for foreign-funded enterprises. In fact, although foreign-funded enterprises can get the benefit of tax concessions in doing business in China, if the foreign government does not grant tax concessions, their tax preferences are not of any substantial benefit. At the beginning of the reform, small foreign companies could benefit from a range of domestic policy imperfections, but international multinationals were unlikely to enter the country without international harmonization of their attractive tax incentives. For domestic companies, although there are few tax incentives in the legal documents, there are numerous tax supplements issued by tax authorities at all levels of government, a situation that not only creates obstacles to fair market competition, but also makes it difficult to harmonize tax incentives due to differences in tax methods with those prevailing in the international arena.
(2) The form of international coordination of tax incentives is too monotonous and the scope is too narrow
In the field of international coordination of tax incentives, China has only intervened in international tax agreements. So far, China has signed bilateral tax agreements with more than 30 countries, which is still too low among the more than 100 countries with which China has diplomatic relations. Therefore, China's international exchanges and participation in the coordination of tax incentives are not yet able to meet and adapt to the requirements of the internationalization of the economy.
The International Monetary Fund believes that a better tax system should meet the following three conditions:
Firstly, the number of tax types should be small and precise, which generally include the following categories of taxes, i.e., import tax, excise tax, general sales tax, personal income tax, and property tax;
Secondly, the number of tax brackets should not be too many, and the marginal rate of tax should not be too high;
Thirdly, the number of tax concessions and tax reductions should be minimal. and tax breaks are kept to a minimum. According to the development trend of increasing integration between China's economy and the world economy, it is obvious that China's tax system should also gradually converge with the international practice.
The convergence of the tax systems of the world's countries will be an inevitable conclusion of the development, and in order to achieve this goal, the pace of internationalization and coordination of China's tax preferences should be accelerated. First of all, in signing international tax agreements, we should increase the number of agreement countries, and strive to operate an interactive network of tax preference coordination in a wider scope, so as to promote China's economic operation to enter into the orbit of the international economy in an all-round way; secondly, we should actively join the International Trade Organization (ITO) as soon as possible, and strive for substantial and permanent reciprocal treatment of tariff preferences, so as to promote the rapid and stable development of China's foreign trade and the improvement of the level of the national economy; and then we should accelerate the pace of the coordination of internationalization of tax preferences. Secondly, to fully consult with the neighboring and Asian countries (regions) on the issues of regional economic cooperation, and strive to form an organization similar to the nature of the regional customs union, through the regional and national tax alliances, to reduce the friction of mutual tax interests, and the formation of a general tax convergence in order to join together to participate in the international competition.
Of course, the international coordination of tax incentives is only a tactical countermeasure due to the conflict of tax interests of various countries, and its ultimate goal is the integration of national tax systems. The international coordination of tax incentives exists with the existence of tax systems in various countries, and will surely die out with the emergence of global tax integration. Therefore, not only should we comprehensively recognize the historical timeliness of tax incentives, but we should also positively regard tax incentives as a tax coordination tool rather than a tax policy goal, and give full play to its transitional role in the construction of tax systems. The establishment of this forward-looking idea will undoubtedly help the internationalization of China's economy and the construction of China's macro tax system.
Preferential Methods
Article 25 of the People's Republic of China (PRC) Enterprise Income Tax (EIT): The State shall grant preferential EIT to industries and projects that are in key support and encouraged for development.
Enterprise income tax incentives can be divided into direct incentives and indirect incentives. Direct preference is a kind of ex post facto transfer of benefits, mainly for the enterprise's business results of tax relief, preferential way is more simple and easy to carry out, with certainty, its role is mainly reflected in the policy tilt, compensation for the loss of enterprises. From a long-term perspective. The direct preference is to reduce the tax rate or the business results of the enterprise tax relief, easy to lead to the reduction of government tax revenue.
Direct preferential methods include tax breaks, preferential tax rates, reinvestment tax rebates and so on. Indirect preferential methods are based on a more sound enterprise accounting system, which focuses on pre-tax preferences, mainly through the adjustment of the tax base of the enterprise tax levy, so as to incentivize taxpayers to adjust their production and business activities to comply with the government's policy objectives. Among the indirect preferences, accelerated depreciation and reinvestment tax credits have more significant advantages, i.e., these two preferences can more effectively guide the investment or operation behavior of enterprises to conform to the government's policy objectives, and encourage enterprises to formulate investment or operation plans from a long-term perspective. Indirect preference is a pre-conditional preference, which is more complicated to manage and operate.
Indirect incentives are mainly in the form of tax deductions, accelerated depreciation, reserve system, tax credits, profit and loss offset and tax deferral.
Others
I. Circulation Tax
1. Refund of Taxes on Increase of Tax Burden Due to Tax Reform
Where a foreign-invested enterprise which has been approved to be established before December 31, 1993, has increased its tax burden due to the change of value-added tax (VAT), consumption tax, and business tax, it shall, upon the application of the enterprise and approval of the tax authorities, refund its excess taxes paid due to the increase of its tax burden for a maximum of five years, within the approved operating limit or no operating limit. and the overpayment of tax.
2. Tax Exemption for Exported Goods
Unless otherwise stipulated by the state, foreign-invested enterprises are exempted from value-added tax (VAT) and consumption tax (CST) on the direct export of goods produced by them.
3. Tax Exemption for Capital Goods Imported for Investment
April 1, 1996, equipment and raw materials imported within the total investment amount of newly approved foreign-invested enterprises shall be subject to tariffs and import linkage taxes at the statutory rate. link tax concessions, that is, the total investment of 30 million U.S. dollars (including 30 million U.S. dollars, excluding additional investment after December 28, 1995) above the project imported equipment and raw materials, before December 31, 1997 is still in accordance with the original provisions of the implementation.
II. Individual Income Tax
For foreign individuals working in foreign-invested enterprises and foreign enterprises in China, and foreign personnel employed in enterprises, institutions, social organizations and state organs in China, the standard for deduction of individual income tax expenses is raised, and an additional deduction of 3,200 yuan is made on top of the deduction of 800 yuan.
III. Enterprise Income Tax
1. Tax Preferences for Productive Foreign-Invested Enterprises
Productive foreign-invested enterprises, except for those belonging to the oil, natural gas, and rare metal and precious metal resource exploitation projects, which are separately regulated by the State Council, are exempted from enterprise income tax for the first year and the second year, and are subject to a 50% reduction in enterprise income tax for the third to the fifth year, starting from the year when they begin to make profits. The enterprise income tax shall be reduced by half from the third to the fifth year. For foreign-invested enterprises engaged in agriculture, forestry, animal husbandry and those located in economically underdeveloped remote areas, after enjoying the preferential treatment of "two exemptions and three half reductions" in income tax in accordance with the regulations, the competent tax authorities of the State Council shall continue to reduce the enterprise income tax from 15% to 30% of the taxable amount for the following ten years after the exemption for the first year and the second year. Income tax.
2. For productive foreign-invested enterprises located in old urban areas, the enterprise income tax rate is reduced to 24%.
Including technology-intensive projects, or projects with foreign investment of more than 30 million US dollars and a long payback time, or energy, transportation and port construction projects, the enterprise income tax rate can be reduced to 15% and exempted from local income tax after approval by the State Administration of Taxation (SAT).
3. High-tech Industrial Development Zone
Foreign-invested enterprises located in the High-tech Industrial Development Zone that are recognized as high-tech enterprises shall be subject to a reduced enterprise income tax rate of 15%. Among them, productive foreign-invested enterprises recognized as high-tech enterprises, which have been in actual operation for more than ten years, can be exempted from enterprise income tax for the first and second years from the profit-making year, and half of the enterprise income tax from the third to the fifth years.
4. Tax Preferences for Product Export Enterprises and Enterprises with Advanced Technology
Foreign-invested product export enterprises, after the full exemption of enterprise income tax in accordance with the provisions of the Tax Law, where the value of exported products reaches more than 70% of the value of the enterprise's product output in the same year, the enterprise income tax can be reduced by half. Those enterprises which have already paid the enterprise income tax at the rate of 15% can reduce the enterprise income tax at the rate of 10%. For advanced technology enterprises, they are exempted from local income tax for three years.
5. Reinvestment tax incentives
Foreign investors in foreign-invested enterprises, the profits obtained from the enterprise will be directly reinvested in the enterprise to increase the registered capital, or as a capital investment in the start-up of foreign-invested enterprises, the operating period of not less than five years, upon application by the investor, the approval of the tax authorities, the reinvestment part of the 40% refund of the tax paid income tax. If the direct reinvestment in the establishment and expansion of product export enterprises or advanced technology enterprises, all the reinvested portion of the enterprise income tax tax paid; reinvestment of less than five years, the tax should be paid back the tax refunded.
Land Policy on Utilization of Foreign Capital
1. Mode of Acquisition of Land Use Right
(1) The land use system is carried out in the form of state-owned land use right with compensation. There are three main ways of granting land: auction, tender and agreement.
(2) For those engaged in the development of infrastructure, public welfare, energy, transportation, water conservancy and other projects, the land can be supplied by allocation.
(3) For those engaged in agricultural, forestry, animal husbandry and fishery development projects, their land may be supplied by lease.
(4) For cooperation with townships and village collective enterprises in industrial, agricultural, forestry, animal husbandry and fishery development projects, upon approval, the Chinese collective economic organization may also supply land in the form of land for shares.
(5) For joint-stock enterprises that list their shares abroad, their land-use rights may be provided by the state to the enterprises by way of land grant, share purchase or lease.
2. Land is supplied by way of grant, and the maximum number of years for which the land-use rights are granted is as follows: 70 years for residential land; 50 years for industrial land; 50 years for land used for education, science and technology, culture, health and sports; 40 years for land used for commerce, tourism and recreation; and 50 years for consolidated or other land use.
3. Preferential treatment for piecemeal development of land
(1) Foreign businessmen shall develop and operate piecemeal land, form "five passes and one level" and "seven passes and one level" construction land, and organize productive projects in the development area, and build energy, transportation, ports and their supporting social public welfare facilities. The land use right grant shall be a certain percentage of the nominal land price to be given as a preference for the formation of industrial land and other land use rights. For the formation of industrial land and other land use conditions, land use rights can be transferred.
(2) foreigners can develop land within the area, according to the plan for the construction and operation of self-contained power stations, heat stations, water plants and other production, living public **** facilities, can also be handed over to the local public utility enterprises. Public **** facilities have surplus capacity, need to supply outside the region or need to operate with the network of facilities outside the region, investors can also sign a contract with the local public utilities in accordance with the relevant provisions of the State to operate.
4. Land preferences for product export enterprises and advanced technology enterprises
(1) The site usage fee for product export enterprises and advanced technology enterprises shall be 5 to 20 yuan per square meter per year in areas where the development fee and the usage fee are comprehensively billed, and up to 3 yuan per square meter per year where the development fee is billed in a lump sum or in areas where the said enterprises develop their own sites. Enterprises with advanced technology are exempted from site utilization fees for five years upon approval, and enterprises whose export product output value accounts for more than 60% of the enterprise's product output value in the same year are exempted from site utilization fees for five years. For infrastructures of foreign-invested enterprises, only the actual project fee for capacity increase will be charged.
(2) For product-exporting enterprises and advanced technology enterprises set up by Taiwanese investors, the land-use fee is exempted from the first to the tenth year of their operation.
Policy on Utilization of Foreign Capital Tariffs
1. Machinery, equipment and other materials:
(1) Chinese-foreign joint ventures are exempted from tariffs and value-added tax on the import of the following goods: (Applicable to the enterprises approved before March 31, 1996
Permitted Enterprises) machinery, equipment, spare parts and other materials that are specified in the contract as the capital contribution of the foreign partner (
Other materials refer to the construction of the factory and the installation of the factory, the installation, the installation, and the installation of the factory, and the installation of the factory, and other materials). Other materials refer to the materials required for the construction of the factory as well as the installation and reinforcement of the machinery); machinery, equipment, spare parts and other materials imported with the funds within the total investment; machinery, equipment, spare parts and other materials imported with the increase of the capital for which the supply of production cannot be guaranteed in the country.
(2) Foreign-funded enterprises shall be exempted from customs duties and value-added tax on imports of the goods in Article (1) as well as production management equipment.
(3) Goods imported by Chinese-foreign cooperative ventures in commerce, catering, photographic and other services, maintenance centers, employee training, passenger and freight automobile transportation, offshore fishing, and others shall be subject to import tariffs and value-added taxes in accordance with the law, unless the State provides otherwise.
2. Transportation
Foreign-invested enterprises imported office vehicles, production vehicles, resident personnel for their own use of cars and their maintenance of parts and components, taxed in accordance with the rules. Off-road dump trucks, repair trucks, fire trucks, road cleaning trucks and other special-purpose motor vehicles can still be imported duty-free. The state designated Dalian Port, Tianjin Xingang, Shanghai Port, Huangpu Port, Manzhouli, Shenzhen Huanggang six ports for the import of vehicles.
3. Imported materials and export of finished products:
(1) foreign-invested enterprises to fulfill the product export contract for the import of raw materials, fuels, bulk, parts, components, components, ancillary parts, auxiliary materials and packaging materials, to be bonded at the time of importation, the processing of products exported to the Customs and Excise Department to be written off after the closure.
(2) Foreign-invested enterprises for the fulfillment of export contracts imported directly for the processing of export products consumed in the production process, a reasonable amount of catalysts, catalysts, abrasives, fuels and so on, exempted from import tariffs and value-added tax.
(3) foreign-invested enterprises for the performance of product export contracts and in the production process of secondary products, corner remnants for domestic sales, approved by the Customs verification, to be appropriate to make up for the tax, for the really no value of the scrap can be exempted from making up for the tax
(4) foreign-invested enterprises approved by the competent authorities of the economic and trade for the processing of domestic products imported for domestic sales of the materials, pieces, should be imported according to the rules. Taxation.
(5) Foreign-invested enterprises shall be exempted from export tariffs for the export of self-produced products, except for the export of restricted commodities or as otherwise provided by the State. Management Policies on Utilization of Foreign Exchange
1. Foreign-invested enterprises are allowed to freely choose foreign exchange designated banks and domestic and foreign banks to open accounts with cash exchange and to retain the cash exchange. Foreign-invested enterprises can make foreign exchange payments within the scope of their normal business operations and repay the principal and interest of foreign exchange loans from domestic financial institutions directly from the balances of their accounts with cash exchange.
2. Preferences for foreign-invested enterprises whose foreign exchange cannot be self-balancing China adheres to the principle of self-balancing of foreign exchange for foreign-invested enterprises, but when the enterprises' foreign exchange cannot be self-balancing, they are permitted to make mutual transfers to foreign exchange transfer centers, and the transfer price is based on the market exchange rate.
3. foreigners are allowed to reinvest renminbi profits according to the foreign exchange investment preferential treatment of foreign investors from foreign exchange balance of foreign-invested enterprises can not balance the share of renminbi profits, with the approval of the reinvestment in the territory can generate foreign exchange or can increase foreign exchange earnings of enterprises, in addition to enjoying the law to return part of the income tax paid preferential treatment, foreigners can be from the acceptance of the investment in the new increase in foreign exchange earnings of the enterprise to obtain foreign exchange to remit their legitimate profits. In approving the reinvestment of foreigners' RMB profits, the foreigners shall provide the profit distribution resolution of the board of directors of the original enterprise and the certificate of the local foreign exchange management department.
4. Foreign-invested enterprises may apply for foreign exchange collateralized RMB loans
Foreign-invested enterprises may apply for foreign exchange collateralized RMB loans in the course of production and operation when there is a surplus of foreign exchange and a shortage of RMB funds. Before the loan, the enterprise should first to the local foreign exchange bureau to declare the source and amount of foreign exchange funds, after approval to the designated financial institutions for borrowing procedures. Foreign exchange collateral RMB loan, can be used for working capital, can also be used for investment in fixed assets, collateralized foreign exchange and RMB loan interest-free each other.
Other Preferential Policies
1. Priority will be given to foreign-invested enterprises for water, electricity, gas, transportation and communication facilities required for their production, which will be billed according to the standards of state-owned enterprises in the city.
2. Foreign-invested enterprises may manage their enterprises in accordance with international practices and enjoy full autonomy in production and operation as well as in employment.
3. Foreign-invested enterprises engaged in real estate development are entitled to the following preferential policies:
(1) Exemption from payment of land-use fees during the real estate development and construction period stipulated in the contract.
(2) If the real estate is used to organize its own production or operation after the construction is started on barren land, wasteland and areas where municipal infrastructures are not complete, it is exempted from payment of land use fee for 20 years.
(3) not for profit, the development and construction of education, health care and other social welfare projects, can be reviewed by the land management department for approval by the municipal government, reduced or exempted from payment of land use rights concessions.
(4) in order to organize the production of export-oriented and advanced technology-based projects mainly development enterprises, the development and construction of land use right concession price concessions; urban public infrastructure construction, treated as a productive project, you can apply to enjoy the reduction or exemption from income tax treatment.