Vice Mayor of Beijing Zhang Mao said Monday that Beijing would not withdraw any preferential policies for foreign investors with China's entry into the WTO.
Zhang made the remarks at the ongoing fifth session of the 11th Beijing People's Congress.
Beijing is to encourage foreign investment in high-tech ventures and infrastructure projects. The municipal government is making greater efforts to create a better investment environment instead of adopting additional preferential policies.
The capital also encourages transnational corporations to establish their regional headquarters as well as research and development centers in the city.
The vice mayor has pledged to continue to streamline the procedures for foreign investment approval.
By the year of 2001, 159 of the world's top 500 ventures had invested in Beijing and by last September a total of 5,049 foreign-funded enterprises had become operational in Beijing.
Preferential Policies on Foreign Investment in Beijing
Beijing Municipality enjoys the relevant policies of the coastal opening cities, which mainly include: The productive foreign investment enterprises with a term of more than ten years shall pay reduced income taxes at 24 percent; in the 1st year and the 2nd year starting from the profitable year, the enterprise income taxes are exempted; and, from the 3rd year to the 5th year, the income taxes will be half reduced.
The productive foreign investment enterprises with their production facilities set up in Beijing Economic and Technical Development Zone with a term of more than ten years shall pay reduced income taxes at 15 percent; in the 1st year and the 2nd year starting from the profitable year, the enterprise income taxes are exempted; and, from the 3rd year to the 5th year, the income taxes of enterprises will be half reduced.
Upon approval of the State Administration of Taxation, the foreign investment enterprises with their investment on agriculture, forestry and animal husbandry shall continuously pay reduced income taxes at 15-30 percent upon expiration of two years' tax exemption and three years' tax reduction in the term of ten years.
As for the productive foreign investment enterprises, its technical and intellectual intensity projects, those with foreign investment of above US$30 million, those with long term returning and those relating to power and traffic may pay reduced income taxes at 15 percent.
In addition to tax preferences, foreign investors may obtain the land use rights for urban state-owned land with compensations through competition for purchase, tendering and agreement, the sales of land use rights may be a minimum of 40 years and a maximum of 70 years according to different uses; Foreign investors may invest on operation of real estates, their housing may be sold, leased or transferred to enterprises, or individuals at home and abroad.
(People's Daily January 29, 2002)
