一、Preferential Policies of Laiwu City

◇  Land Policy

To set up industrial projects in Laiwu High-Tech Industry Development Zone (hereinafter called as high-tech zone), according to the stipulated volumetric efficiency ( efficient land–use percentage), no less than the fixed assets investment of US$0.1 million for 666 square meters land is a limit. In this limit, the projects with the investment of fixed assets ≥ US$4 million or ≥ US$8 million will be financially supported respectively by 80% and 70% of the reference land price promulgated by the government of Laiwu City.

To make investment to construct factory building with the space of over 10000 square meters in high-tech Zone, the projects will be financially supported by 70% of the reference land price promulgated by the government of Laiwu City.

To set up industrial projects outside high-tech zone and need land, each project with a total investment ≥ US$0.5 million or ≥ US$0.1 million will be financially supported respectively by 40% and 30% of the land-sale price.

To make investment for projects of basic facilities and social public welfare, the land needed will be given by assigned method.

The projects to develop agriculture and forestry without damaging the plantation conditions will be conducted according to the contract way of local peasants, and their operating life is 30 to 50 years.

For 5 years in succession from its operation, new industrial enterprise will be financially supported by all the local retained amount of business income tax which the enterprise should pay and will been actually paid, and will get another 50% of the above local retained amount from 6 th to 8 th year.

The projects with the fixed assets amount of ≥ US$1 million, ≥ US$0.5 million and ≤ US$0.5 million will be financially supported respectively by 50%, 40% and 30% of the local retained portion of the actually paid value-added tax by same-stage government finance for 3years in succession. If the project is affirmed as an above province-level high-tech one, it will get 100% of the above local retained portion from the same-stage government finance.

Annexing or making investment into already existing enterprise, this project will enjoy the supporting policy stipulated above according to the increased tax revenue resulting from the pro-portion of fixed assets investment amount.

For the projects of tourism, commerce, entertainment and real management with the total fixed assets investment ≥ US$0.2 million, in 5 years in succession from its operation, will be financially supported by the same-stage government finance with all the local retained amount of the business income tax which the enterprise should pay and will have actually paid.

Those projects with the total fixed assets investment ≥ US$1 million, in 3 years in succession from its operation, will be financially supported by the same-stage government finance with 30% of the local retained amount of the business income tax which the enterprise should pay and will have paid. All the projects of chain super market, transportation and special wholesale market, will get 100% of the above local retained amount.

For the projects of operational basic facilities and social public welfare, in 8 years in succession from its management, will be financially supported by the same-stage government finance with all the local retained amount of the business income tax which should be paid and will have been actually paid by the enterprise.

All the projects with the total fixed assets of ≥ US$5 million each, projects ≥ US$2 million and being affirmed as high –tech one above province-level (including province-level), projects of iron & steel deep-processing with an investment of ≥ US$4 million and projects of agriculture produce deep processing and other projects with high added-value and export orientation bringing along local economy will enjoy case by case policy and more preferential treatment in construction land, financial supporting and charges collection.

二 .The Preferential Policies of the North Industrial Zone of Laicheng District

◇ Land Policy: The projects with the fixed assets ≤ US$ 3 million, the land sale price will not exceed US$54,000 per hectare. The sale price of ordinary industrial projects will not exceed US$54,000- 81,000 per hectare.

◇ Tax Revenue Policy: To all the industrial projects for the first 5 years, the local retained amount of the business income tax will be free and for the following 3 years, the above will be halving. For the first 5 years, to the projects of commerce, service industry and entertainment with a fixed assets of above US$ 0.1 million, the local retained amount of the business income tax will be free and for the following 3 years, the above will be halving. For the first 3 years, the above projects with a fixed assets of above US$ 2 million, the local retained amount of the turnover tax, urban construction tax, additional tax of education, surtax of education will halving. To make investment for special wholesale market, for the first 5 years, the turnover tax and the local retained amount of business income tax will be free.

Within 3 years from its operation, the same stage government finance will give incentive of different percentage of the 25%of the value –added tax turned over in those days. The incentive for the investment bellow US$0.1 million, between US$ 0.1-0.5 and above US$ 0.5 million be respective 30%, 40% and 50% of the above 25%. For the projects of above province-level high –tech, the incentive will be 100% of the above 25%.

To important high-tech and overseas projects, we will adopt the method of “special case with special handle; case by case”.