Article 1 With a view to further strengthening investment and attaction more external investors to Dongying City.the present preferential Policy is formulated in accordance with the relevant provisions of the state and Shandong province and with due consideration of the specific conditions of Dongying City.
Article 2 This Policy applicable for new businesses founded by external investors within the administrative area of Dongying City. The circulating tax and income tax for local portion paid by these enterprises will be used as local revenue. This policy shall also be applied to public welfare projects.
Article 3 Financial incentives
1) The newly established industrial enterprises shall be granted 40 percent of the paid value-added tax (VAT) for local portion as financial incentive each year in the first three years of operation. For certified State-level high-tech projects, the entire local portion of VAT shall be granted as financial incentive each year in the first three years of operation.
2) The newly established industrial enterprises shall be granted the entire local portion of enterprise income tax as financial incentive each year in the first five profitmaking years. For certified State-level high-tech projects, such kind of financial incentives period shall be extended to seven years.
3) The enterprises merging with or investion in the existing industrial enterprises shall enjoy the prefernce stipulated in the above two articles for the newly increased tax by deduction the tax base of the existing enterprises of the previous year.
4) The newly-established commercial, service and recreational projects which fall into the encouraged category with fixed assets investment of over 5 million RMB Yuan (about 620,000 U.S dollars) shall be granted the entire local portion of income tax each year in the first three profit-making years. and 50 per cent int following two profit-making years. The projects with fixed assets investment of over 10 million RMB Yuan (about 2,480,000 U.S dollars) shall be granted 50 percent of the really-paid turnover tax and VAT for local portion as financial incentive each year in five years of operation.
5) The new-established chain-supermarkedt, logistic center or special wholesale markedt with investment of over 10 million RMB Yuan (about 1,240,000 U.S dollars), since the operation ,shall be granted the entire of turnover tax and income tax for local portion as financial incentive each year during five years.
6) Those who contruct industrial standard workshops in the Dongying Economical Development Zone and ivvite investment by way of leasing the workshops shall be granted turnover tax and VAT for local portion as well as the urban construction tax as financial incentive. Turnover tax and income tax for lcal portion shall be granted each year during the first five years since the day of leasing out.
7) Those who invest in infrastructure project and social welfare project such as port, shaool, hospital, urban public utilities or tourism resource development shall be granted the entire income tax for local portion as financial incentive each year in the first five profit-making years.
8)Within the preferential period stipulated by the above articles, the newly established enterprises that have enjoyed the state-level incentives shall enjoy the more preferential portion of this taxation incentive.
ARTICLE 4 PPolicy on land uses support
1) For the industrial projects invested in the Dongying Economical Development Zone, land use quota shall be fixed according to the stipulated volume rate and fixed-assets investment standard of no less than 800,000 RMB Yuan (about 100,000 US dolars) per mu (1 mu-1/15 hectare). Within the land use quota, preference will be given on land price and utilities development.

A support on land price
For the projects with fixed-assets investment of less than 3 million RMB Yuan (about 370,000 US dollars),within the land use quota, land price shall be the standard price of 60,000 RMB Yuan (about 7,000 US dollars) per mustipulated by government.
For the projects with fixed-assets investment of 3 million RMB Yuan or above, preference support on land price shall be previded;
The projects with fixed-assets investment of 3 million RMB Yuan (including 3 million RMB Yuan) to 10 million RMB Yuan (about 1.2 million US dollars),within the land use quota, shall be granted 75 percent of standard land price as financial incentive;
The projects with fixed-assets investment of 10 million RMB Yuan (including 10 million RMB Yuan) to 30 million RMB Yuan (about 3.6 million US dollars),within the land use quota, shall be granted 80 percent of standard land price as financial incentive;
The projects with fixed-assets investment of 30 million RMB Yuan (including 30 million RMB Yuan) to50 million RMB Yuan (about 6 million US dollars),within the land use quota, shall be granted 85 percent of standard land price as financial incentive;
The projects with fixed-assets investment of 50 million RMB Yuan (including 50 million RMB Yuan) to 100 million RMB Yuan (about 12 million US dollars),within the land use quota ,shall be granted 90 percent of standard land price as financial incentive;
The projects with fixed-assets investment of 100 million RMB Yuan (including 100 million RMB Yuan) shall be granted 95 percent of standard land price as finacial incentive.
For the projects of large investment, high technology and the projects, which will bring considerable development of regional economy, special preference will be granted according to “case by case basis”.

B Support on utilities development

For the projects with fixed-assets investment of less than 3 million RMB Yuan(about 370,000 US dollars), the investor shall bear the cost of supporting utilities development (Utilities for water supply , power supply , heating supply , sewage , roads , communication and land leveling 0.3 meter below the planned height mark) of 64,000 RMB Yuan (about 8,000 US dollars) for per mu of land
For the projects with fixed-assets investment of less than 3 million RMB Yuan or above ,preference support on land utilities development shall be given:
For The projects with fixed-assets investment of 3 million RMB Yuan (including 3 million RMB Yuan) to 10 million RMB Yuan (about 1.2 million US dollars) the cost for land utilities development borne by investor shall be 15,000 RMB Yuan (about 1,800 US dollars) per mu;
For The projects with fixed-assets investment of 10 million RMB Yuan (including 10 million RMB Yuan) to 30 million RMB Yuan (about 36 million US dollars) the cost for land utilities development borne by investor shall be 13,000 RMB Yuan (about 1,600 US dollars) per mu;
For The projects with fixed-assets investment of 30 million RMB Yuan (including 30 million RMB Yuan) to 50 million RMB Yuan (about 6 million US dollars) the cost for land utilities development borne by investor shall be 11,000 RMB Yuan (about 1,400 US dollars) per mu;
For The projects with fixed-assets investment of 50 million RMB Yuan (including 50 million RMB Yuan) to 100 million RMB Yuan (about 12 million US dollars) the cost for land utilities development borne by investor shall be 9,000 RMB Yuan (about 1,100 US dollars) per mu;
For The projects with fixed-assets investment of over 100 million RMB Yuan (including 100 million RMB Yuan ), the cost for land utilities development borne by investor shall be 7,000 RMB Yuan (about 900 US dollars) per mu ;
For the projects of large investment ,high technology and the projects, which bring considerable development of regional economy, special preference will be granted according to “case by case basis”.
2) Those who construct industrial standard workshops in the Dongying Economical Development Zone and then use them for leasing, within the land use quota, shall be granted 80 percent of standard land price as financial incentive, and the cost borne by investor for land utilities development shall be 13,000 RMB Yuan (about 1,600 US dollars)per mu .
3) For industrial projects outside of Dongying Economical Development Zone, in principal ,the land price shall be the standard price stipulated by Dongying government while special preference will be granted on the principle of “case b case basis” for the projects of large investment ,high technology or the projects which bring considerable development of regional economy.
4) If the land need exceeds the land use quota, the price for exceeding part of land shall be the standard price stipulated by Dongying government.
5) The land users shall use the land strictly abiding by the land use purpose authorized thereof. Shall the necessity arise from the change of land use purpose ,the approval from urban planning and land management departments must be obtained, a new contract on land use shall be signed and the land price difference shall be paid.

Article 5Policy on fees charging 
1) For the newly established enterprises in the Dongying Economical Development Zone, only the cost of production fro certificates and enterprise registration fee shall be charged during the registration and construction , and the administrative and executive fees during production operations shall be totally exempted.
2) For the new-established enterprises outside the Dongying Economical Development Zone ,only the cost of production fro certificates enter-price registration fee and urban infrastructure fee shall be charged during the registration and construction . Since the day of operation, the executive fees shall be exempted in the first three years, half of the administrative fees shall be charged during the first ten years.

Article 6 policy on household registration

For investor with more than 500,000 RMB Yuan (about 60,000 US dollars) of fixed assets investment and with fixed residence , urban household or relocation formalities can be obtained for the investor himself ,his spouse and children. For Investor with over 3 million RMB Yuan of (about 37,000 US dollars) fixed-assets investment, besides the above preferential policies, urban household or relocation formalities can be obtained for the managerial personnel of middle level or above , technicians ,and the staffs with an educational background of junior college or above as well.

Article 7 Investors shall enjoy the same treatment as the residents of Dongying city in water supply , power supply , heating supply , medical service , children’s admission to nursery and school and employment opportunity ,etc.

Article 8 Honorary titles or honorary posts can be given to the investors who make a large amount of investment or take a major role in introducing other investors to Dongying , investor whose investment brings considerable development of regional economy ,and technical talents who have made prominent contribution with prior admission by themselves.

Article 9 To fulfill the tax incentive, the taxpayer shall make an application and obtain the confirmation from Dongying Investment Promotion Bureau. The support fund shall be cashed by the financial department within one month starting from the date of application according to the certificates issued by taxation department. To fulfill the land incentive , for the industrial projects outside of Dongying Economical Development Zone , the land administrative department shall be responsible for handling the relevant formalities according to the certificate issued by the Investment Promotion Bureau . For the industrial projects in Dongying Economical Development Zone , Dongying Economical Development Zone shall be responsible for organizing relevant departments and cashing the land support fund , and fulfilling the tax preferential policy according to the confirmation by the Investment Promotion Bureau .To fulfill the policies in household registration , the public security department shall be responsible for handling the relevant formalities according to the certificate issued by the Investment Promotion Bureau.

Article 10 The policy shall be subject to the interpretation by Dongying Investment Promotion Bureau.

Article 11 The policy shall come into force as of the date of its promulgation. Businesses founded between January 1st 2000 and June 6, 2003 will enjoy the benefits from this policy in stages. Relevant articles of the original policy effective as of January 1st, 2000 shall govern issues not covered in this policy.