Investment Services

1.1.1 The foreign-invested companies are encouraged to participate in the asset reorganization of the state-owned enterprises. The enterprises with a basically balanced liability and assets can be acquired as 0 assets with the condition that the acquiring companies should assume the well-defined legal responsibility and should be accountable for the liability of the acquired enterprises. In case that the reorganized companies export over 50% of the total annual produce values they will enjoy a 100% corporate income tax refund in the same year. The reorganized firms will enjoy a 50% corporate income tax refund for their hi-tech and new-tech projects upon the appraisal and confirmation by the Sichuan Provincial Economic Commission and the Sichuan Provincial Department of Science and Technology starting from the confirming date. The enterprises in trust agreements for or on leasing agreements for or on a contract for not less than a period of 5 years and occurring great losses, shall enjoy a full corporate tax refund for 3 years and a 50% corporate income tax reduction for 2 years during the operation time.

1.1.2 The venture capital institutions, both home and abroad, in the IT industry shall enjoy a 60% corporate income tax reduction for 5 years starting from the profitable year with the conditions the investment consists of over 70% of the total investment and they income tax should be paid first and then the paid taxes will be refunded as the government subsidies to compensating the losses. In the investing year and in the years afterwards.

1.1.3 The fee rates collected from the public services and the civil infrastructure development projects like water treatments, garbage treatments by enterprises, individuals and the foreign investors in various form of solo, joint-venture, and cooperation, will be determined, in principle, lower than the average cost. The operational cost will be compensated after the projects are in operation to realize reasonable profits.

The promotional and preferential policies encouraging foreign capital to participating in the SOE assets reorganization are commonly found in other provinces including the east and central provinces . Some are even more favorable.

Sichuan offers more favorable tax treatment policies than others to the venture capitals in IT Industry. For instance, Beijing offers 50% of the income taxes yet only to the portion to be submitted to the local governments. Sichuan government will subsidy 60% of the corporate income taxes which is higher than Beijing by 10%.

The non-legal persons which have the registration at the Business Administration Institutions and which are of capability including foreign-invested companies, offices and presentation offices can apply to conduct mineral exploration mining activities in Sichuan . They shall enjoy the following preferential treatments in accordance with relate regulations and policies:

2.1.1 . The exploration and mining projects in the minority regions will be exempted from the rights fees for the first two years. The rights fees will be deducted by 50% for the 3d year to the fifth year.

2.1.2 . The exploration and mining projects promoted and encouraged in the “Industrial Guidelines for the Foreign Investment” shall be exempted from the mineral resources compensation fees for 5 years. The intergrowth mining products from the comprehensive mining will enjoy a 50% deduction of the resources compensation fees. The projects that use the residual mining resources will be exempted from the resources compensation fees.

2.1.3 . The projects that use advanced technology where the domestic existing technology is notable to or find it rather difficult to conduct the comprehensive mining will enjoy a 50% deduction of the resources compensation fees for the first 3 years with the condition that the comprehensive utilization of the mining resources, mining selection and re-mining are higher than the domestic averages. The additional portion of the products as compared to the same level by the domestic counterparts will be exempted from the resources compensation fees.

2.1.4 . Should the foreign- invested mining firms occur the annual losses due to force majeure, they can apply for a no higher than 50% of the resources compensation fees or apply to defer the resources compensation fee payments for the year when the losses occur.

2.1.5 . The exploration expenditures that occur in the designated exploration regions and that indicate the commercial mining potential can be treated as the deferred assets and be amortized during the mining years starting from the first year of the commercial mining.

2.1.6 . The accelerated depreciation policies on the fixed assets will apply when the projects start the commercial mining upon the applications approved by the relate taxation administrations.

2.1.7 . The sites usage fees for the non-permanent usage for the exploration activities shall be exempted.

The promotional and Preferential policies to encourage the foreign investments in Sichuan mining industry is in a legal formality as stipulated in the “Sichuan Policies and Regulations to Encourage Foreign Investments Mining Industry” approved by the Sichuan Provincial People's Congress. This is not a common treatment in this regard in China .

3.1. The investments in Sichuan over 5 million USD by the Taiwan investors can lower the registered capital and total investment value ration upon approval.

3.2. Sichuan started its “Says All” card practice in Feb. 1999. The card lists all the fee items and rates for the foreign investments in Sichuan . No institutions and organizations can change, add, raise or expand the items listed ones without proper approval. Since China became a full member of WTO, Sichuan publicizes its fee collection items relate to business. All the citizens, legal persons and other organizations have the rights to reject any fee collection should the collection is not included in the government published fee collection catalogues.

3.3. Sichuan has developed its accountability system which prevents the conducts harming the business environment for the economic development. The persons occurring misconducts of illegal or law breach conduct, administrative indifferences and other administrative mishandlings shall be disciplined. The conducts that are of criminal possibility will be transferred to and handled by the law enforcement organization. Sichuan has set its “The Complaining Center of Sichuan People's Government for Foreign Business” and “The Complaining Center of Sichuan People's Government for Taiwan ”. The two centers are special agencies responsible for handling the complaints from the foreign business and Taiwan business, for assisting problem solving and coordinating so as to protect the legal rights of the foreign and Taiwan businesses.