Regulations on Encouragement of Foreign Investment of Inner Mongolia AutonomousRegion (I)
Date of Issue: June 29, 1996
Area Applied: Inner MongoliaAutonomous Region
Issued by: The 7th Standing Committee of People Congress of Inner MongoliaAutonomousRegion
Chapter I General Provisions
Article 1 These provisions are formulated according to The Law of National Regional Autonomy of People's Republic of China, other related laws and regulations, the present situation of Inner Mongolia Autonomous Region in an attempt to widen opening-up, encourageforeign investment and stimulate the economy of Inner Autonomous Region.
Article 2 These regulations shall apply to foreign corporations, enterprises and other economic entities or individuals (hereafter called foreign investors); Sino-foreign joint ventures,cooperative ventures and wholly foreign-funded enterprises (hereinafter calledforeign investment enterprises) and other public utility organizations set up in Inner Mongolia.
Article 3 Foreign merchants making investment in this province shall enjoy preferential treatment formulated by the state laws, rule, policies and these regulations.
Foreign investmententerprises which producefor export or possess advanced technology,and those engaged in energy, transportation, construction ofinfrastructural facilities, natural resources development, raw material production, farming,animal husbandry, forestry and fishing are entitled to enjoy special preferential treatment.
Article 4 Inner MongoliaAutonomous Region shall protect foreign investors' investment, legal profits, and other legal rights by law.
Foreign investment enterprisesshould abide by laws, regulations of P. R. China and other local regulations of InnerMongolia Autonomous Region.
Article 5 Inner Mongolia Autonomous Region has beensetup a leading group whichis in charge of the affairs concerning foreign investments. Under the leading group there is an officewhich is in charge oftheratification,administration, coordination, consultation and other services for foreign investment enterprises.
Chapter II Preferential Policies on taxation
Article6 The foreign investment enterprisesengaged in production and with aterm of operation of over 10 years shall be exemptedfrom corporate income tax for the 1st and 2nd year from the profit-making year, shall pay corporate income tax at half of the stipulatedrate from the 3rd to the 5th year.The foreign investment enterprises should returnthe exempted and reduced incometax if the actuarial operation of the enterprises is less than 10 years.
Upon approval by thetaxauthoritiesof anapplication filed by the enterprise, the enterprise will be allowed a 15 to 30 percentreduction of the amount ofincome tax payable fora period of another ten yeas following the expiration of the period for tax exemption and reduction.