Preferential Policies for Promotion of Service Sector

1. Any capital may enter the service sector except those prohibited by state laws and regulations. Establish incorporate service enterprises, and the entire initial investment of all share-holders will be no less than 20% of the total registered capital, and no less than the volume of the minimum registered capital, among which the initial investment of a limited liability company must be no less than 30,000 RMB yuan with the rest being funded by shareholders with two years starting the establishment of the company. A registered capital of 30,000 yuan will be allowed to create a limited company of technological service category.

2. Soften the terms for registration of business operation places. Enterprises or self-employed individuals engaging in designing, consultation, intermediary services and translation who don’t affect or do no harm to public interests, surrounding environment as well as living of common people, whose residences have gained legal property ownership or using rights, and got certified by property management organizations of communities or property owner committees, may apply for registration according to operating places.

3. Reduce or exempt the income tax for newly-established service enterprises or operating organizations. Newly-established service enterprises engaging in logistics technology, consultation service and logistics information will be exempted from income tax according to related regulations. Income tax for newly-built comprehensive specialized markets and commodities’ exhibition centers may be reduced or exempted upon the approval of tax administrations. Tax for businesses without basic financial accounting conditions in various specialized markets may be levied based on a fixed quota after checking and ratifying the business volume. Commercial medical care institutions will be exempted from business tax, real estate tax and tax for using the land starting from the registration date or date gaining business licenses within 3 years. Special vehicles for medical use will be exempted from vehicle using tax.

4. Vigorously support and prosper development of logistics sector. When logistics enterprises contract the business to other units and then charge some fees, the business tax will be levied according to the amount gained by using all income to subtract other necessary expenditures. Road toll, added fee for cargos and transportation management charge will be levied by half for the exceeded part of commercial lorry with 20 tons loading capacity. Lorries with loading capacity of 10 tons or above may pay 10 months road toll on a lump-sum basis for the whole year.

5. Back up research and development and production of servicing products. The expenses on technical development by manufacturing and servicing enterprises may be kept among management expenses. When technological development expense has increased by over 10% over the past year, the 50% of the expense is allowed to balance the business tax of the very year. The software manufacturers and enterprises on designing integrated circuits may enjoy the policy of Two Exemptions & Three Half Reduction when collecting tax starting the year making profits. Such technological servicing enterprises as research and development, designing and creation may be ratified as hi-tech enterprises, thus enjoying relevant preferential policies set for hi-tech enterprises.

6. Promote the development of modern manufacturing service sector. The manufacturing service enterprises auxiliary to industrial centralized sector in development zones may enjoy the favors of tax collection set for industrial enterprises. The manufacturing foreign-funded ventures undertaking international contracted services will be exempted from levying of enterprise income tax for two years, and after expiration the enterprise income tax will be levied by half for three years. Service trade export enterprises paying value-added tax may enjoy the preferential policy of export refund after exportation.

7. Increase more financial support. A total of 10 million RMB yuan budgetary fund will be allocated by municipal financial authorities every year mainly in supporting state and provincial guidance money, as well as paying interest or providing subsidies for major service projects which have large influence, powerful impetus functions and have a leading demonstration role.

8. The prices of water and gas consumption for service projects (excluding special trades like sauna, car-washing etc.) will be the same with those of industrial projects.

9. Lower the standards for collecting fees, and strictly enforce the provincial and municipal catalogs on collecting administrative charges. Charges for items unlisted amongst the catalogs will be cancelled, and when fee-collecting standards have certain fluctuating scopes, charges will be collected according to the lower limit.