1、Tax Policy

（1） As to newly set up manufacturing enterprises with foreign investment with a term of more than 10 years, the business income tax will be exempted in the first two profit-making years and reduced by half in the ensuing three years. The income tax of the foreign invested enterprises whose products are for export and the export value is over 70% of the enterprises' total output value in the very year can still be half levied based on the legal taxation rate after the legal exemption and reduction expired. For the foreign invested advanced technical enterprises approved by department at or above the provincial level, their income tax can be half levied based on the legal taxation rate for another three years after the legal exemption and reduction expired.

（ 2 ） For projects in the development zone of Zhaoyuan city with paid-in investment of more than 10 million yuan (or equivalent foreign currency), and the company registers and pays tax by itself, 20% of the local financial income generated by their paid-in taxes in the current year (except for income tax) will be refund to the enterprises annually in the first three years.

2、Land Policy

（ 1 ） The basic land-use condition for new project is ：① Meeting the requirement for environmental protection after environment appraisal ；② Meeting the requirement for land use intensity, large investment, referring to the average paid-in investment on one mu covered by the net building is above 1 million yuan (or the equivalent foreign currency) ； the total investment is above 10 million yuan (or the equivalent foreign currency) ， of which the investment for fixed assets is more than 5 million yuan (or the equivalent foreign currency) ； ③ According to the industry classify, the plot ratio of the building in the development zone is more than 0.6 ； ④ the construction coefficient of the industry project is not less then 35% ；⑤ The land-use for the building of administration and living is less than 7% of the total land covering area, and the green rate is not more than 15% ；⑥ the building is higher than 3 floors except for special requirement .

（ 2 ） The land-use declaration and approval procedure for manufacturing projects ：

① The sponsor submits the project application to the People's Government of Qishan Town ；

② The People's Government of Qishan Town will negotiate with the sponsor and bring forward the initial land-use opinion according to the land-use range of town planning and land-use planning and project requirement for the land ；

③ The People's Government of Qishan Town will assist the sponsor to handle the related work of project approval, environment protection appraisal, enterprises registration, the location for construction project, the planning procedure, etc..

④ The People's Government of Qishan Town will assist the sponsor to handle the related work of land levy, declaration and approval and remission.

⑤ For project in the development zone of Zhaoyuan city, the People's Government of Qishan Town will assist the project sponsor to make declaration and get approval.

3、The price (various charges for land requisition and remising) of the land used for manufacturing projects in Qishan town (including the land used for the other non-commercial) will be calculated and collected according to the national standard basically. The following preferential policies are provided to the newly built projects listed in our city's encouraging industry, foreign invested projects, the projects invested by outer of Zhaoyuan and the approved total investment reaches 10 million yuan (or the equivalent foreign currency):

（ 1 ） The lowest charging standard is adopted in the carried out range fee.

（ 2 ） The tax for covering the cultivated land listed in local financial budget, the local land remising fee and contract tax will be given to the project sponsor as investment subsidies by the People's Government of Qishan town, which is fully paid by the enterprise first, and in the following month it is fully appropriated to the People's Government of Qishan town.

For the project introduced by the government of Qishan town and built in the development zone with large investment, the government of Qishan town will provide the enterprise with 5000-10000 yuan per mu as subsidy.

4、Other Related Policy

（ 1 ） For the project meet the provision of above 2 (1), the company is exempted from the auxiliary fee for city basic installation, the special fee for new-type wall material levied by Zhaoyuan government, the soil and water conservation fee and the fee for water capacity increased.

（ 2 ） The lowest charging standard is adopted for other administrative fee.

（ 3 ） For the projects with large investment, high technology and strong effect, more preferential policies will be given by the government from the beneficial finance according to case by case principle.

（ 4 ） For the investors out of Zhaoyuan city with total investment of or above 10 million yuan, the investors, managers, technicians and spouses can settle in Zhaoyuan and the children can be arranged to go to nursery or school locally.