According to the investment scale, science and technology content, anticipated taxes and land fund volumetric flow rate of the project, Rugao put forward all kinds of preferential policies to encouge the starting of undertakings and to attract investment.

1. Project Land Uses
(1) Land may be sold or rented upon consideration. When the collective-owned land is taken over for use, the legal compensations are allowed to be converted into enterprise Shares on the presise that the two sides are both voluntarily. The investors’ aspiration should be respected in form.

(2) If the item were in an ergent need of land, the Municipal Land Bureau could transact the temporary formalities for using the land and at the same time. Should manage the formal approval formalities within the fixed time, on the basis that the land-using unit offers the item approval, research report on feasibity, environment-protection inquisitional materials, land inquisitional report, programming red-line chart, and the advance payment of the land requisition charges.

(3) As to the transfer land of the production-oriented enterprise, flexible land price may be adopted according to the following conditions of the item: investment scale, science and technology content and anticipated taxes etc. As for the production-oriented enterprises which are invested by the foreign tradesmen and have been run for more than ten years, their land use may be arranged priorly.

(4) Of the transfer land charges, the part that should be turned over to the provincial finance is 19100-10400 yuan per mu, and the total amount of money will be collected. According to the policy stipulated by the above-province department the part that should be turned over to the municipal finance is 16300-18800 yuan per mu. The turning-over of this part may be postponed and the following chargrs may be exempted: the new vegetable land development fund, the preparatory fund for removing tha group and the service charges for land requisition. As to the compensations turned over to the villages and qroups, the development zone and the town where the item is located, together with the investors many make an agreement, and then turn it over to the development zone management committee and the town government to handle.

(5) The enterprises adopt the way of renting to use the state-owned and collective-owned land, and turn over the rental year by year according to the agreement.

2. Enterprise Income Taxes
(1) As for all the production-oriented enterprises which are invested by the foreign tradesmen and are established according to the law, and have been run for more than 10 years they may enjoy the polily of “two years of tax-free and three years of tax-abatement” over since the year they gain profit. After the preferential-period is expired, the enterprise income tax can continue to be reduced by half upon the condition that the value of upon the exported productions. that year reades more than 70% of the total value of the enterprise productions.

(2) After the preferential period is expired, the income tax may be reduced by half for another three years on the condition that the enterprise, which is inrested by the for the foreign tradesmen and has been run for more than 10 years, is still one of high and now science and teconology.

(3) The joint enterprise of China and foreign countries, which engages in the harbour and port construction and has been managed for more than15 years, may enjoy the polily of “5 years of tax-free and 5 years of tax-abatement ever since it gains profit.

(4) It the foreign investor directly invests the profits into the enterprise to increase the registering capital, or uses the profits to start another enterprise, then the enterprise may enjoy the policy of tax abatement.

(5) 40% of the mvestment used by the foreign-tradesman-invested enterprise to buy Chinese-made equipment may be exempted from the newly-added income tax that year than the last year.

3.Concerning Enterprise Stipulated Charges
(1) As for the charge items without the approval of the State Council and the provincial government, none is allowed to be collected.

(2) As for the stipulated charges that should be turned over to the provincial finance, all of them should be executed at the lowest standard, and at the same time, they may enjoy the special preference giver by the provincial government to Rugao.

(3) Among all the stipulated charges that should be turned over to the municipal finance, all that can be exempted should be exempted. As for those that must be turned over, the municipal government zone and the town where the item is 10 cated, and the zone, the town and the mvestors discuss the encouraging and rewarding terms face to face.

4.Industrial and Commercinl Registration
(1) All the preceding requirements of checlemg, apptoral and registration will be cancelled except the special examination and approval,and the licence which are stipulated by laws, administratire laws and regulations, the state council and the provincial government.
(2) Generally, the muuicipal industrial and comnercial branch should manage the procedure on the very day if the materials are complete. If theprocedure can’t be managed on the very day, the registration should be made and the business licence should be issued seven days after the acceptance date.
(3) The registration capital of the small-scaled enterprise, whose registration capital keeps above the prescribed minimum stipulated by the laws and regulation, may be fulfilled by stages. In the first year, 50% of the tegistration capital should be fulfilled and the rest of it may be fulfilled progressively in three years.
(4) The evallated money amount of the achievement that is due to the new and high science and technology may accounts for35%of the registration capital. It the proportion more than 35% and the evaluated amount of money is more than1000000 yuan, it may be reported to the prinvincial administrative management branch of science and technology to be attested after every investing side have made of high and new technology and whose registration capital is less than 500000 yuan, the evaluated money amount of the high and new technology among the registration capital may not be conduued capital assessment after being affirmed by all the stockholders.

5.Recommending the Foreign Capital
(1) All that recommend the foreign capital or the capital from the places out of the Rugao boundarres to invest in Rugao city will be awarded the recommendation prize.
(2) The person who makes a recommendation will be awarded in a certain proportion and on the basis of the amount of the foreign capital that is actually recommended. The person who recommends the industrial or agricultural capital of 1000000-4990000 dollars will be awarded 1% of the total amount. As for 5000000-9990000 dollars,1.5% will be awarded and for more than 10000000 dollars,2% will be awarded. As to the third industry, the awarding is 10% of the abover standard.

6.Teconological Reform Investment
(1) As for the teconical reform item which obtains the financial disconnt from above the province,a certarn proportion of allocated discount will be given according to the discount base and interest rate carried out by the Provincial Financial Department. The highest discount amount for a single item is 1000000 yuan.
(2) As for the industrial item which doesn’t obtain the financial discount from obove the province, and whose production equipent fultills more-than-1000000-yuan workload, if the item is in conformity with the industrial policy, it will be given a discount of 30% of the annual interest of the technical reform loan from the bank in the corresponding period. The highest discount amount for a single item is 1000000 yuan.
(3) The item which abtains the above province scientific and teconological appropriation will be awarded 10% of the total amount of the expenditure transmitted from the upper levels. It will be awarded of the expenditure transmitted from the upper levels. After being checked and accepted, it will be awarded another 10% of the total amount.
(4) Every completed item that is listed in the national “Shuang Gao Yi You”(which means………..) Plan will be awarded 50000 yuan. And every completed item that enters in the list of the provincial important technological reform items will be awarded 30000 yuan.

(5)The logal representatire of the newly-built engineering technology research centre or the enterprise technology centre of the Nantong municipal level, or the national lever will be awarded 20000yuan, 80000yuan or 200000yuan respectively.

7.Enteerprise Development
(1) All the famous star enter prises that are chosen to win the gold medal, silver medal or bronze medal will be awarded 100000yuan, 50000yuan or 20000yuan respectively.

(2) As for the enterprise whose annual sales income is less than 100 million yuan, and whose newly-added sales income that year is more than10 million yuan ,and whose increase range and sales profit rate are not lower than the average lever of all the municipal enterprises on a certain scale, its legal represetalive will be awarded 2000 yuan for every not incease 10 million yuan of sales income.

(3) In one year, if the sales income first reaches 100 million yuan, 300 million yuan , 500 million yuan ,1 million yuan ,2 billion yuan ,3 billion yuan ,5 billion yuan or 10 billion yuan ,the legal representative of the enterprise will be awarded 10000yuan ,20000yuan, 30000yuan, 50000yuan , 80000yuan ,100000yuan, 200000yuan or 500000yuan respectively.