WHERE TO INVEST- SOME REGULATIONS ON FURTHER SUPPORT TO THE DEVELOPMENT OF HIGH-TECH INDUSTRIES
(Draft for Review)


For better implementing the "Resolutions on Pushing Forward the Progress of Science & Technology Made by Sense Municipal Committee of the Communist Party of China and Shenzhen Municipal People's Government" (ShenFa <1995>No. 32), and giving further support to the high-tech industries, such as, information technology, biological technology and new materials technology etc. So to realize the strategic target of building our city into a high-tech industry base, the regulations on supportive policies and measures are made as follows:


1. Continuing in financial investment in science & technology, expanding the funds scale for R&D. In 1998, the funds for R&D of municipal level shall reach as much as 1.5% of budgetary financial expenditure in that year. The funds shall be increased year by year afterwards and it shall reach up to 2% of budgetary financial expenditure by the year of 2000.
2. Enforcing the role to be played by the Shenzhen Hi-Tech Industry Investment & Service Company and strengthening its function of providing guarantee and stock equity investment for the high-tech enterprises. Starting from the year of 1998 and on the basis of the establishment of experts' advisory system, 100 million RMB will be added to the registered capital of the company by municipal finance for successively three years. Therefore the registered capital of the company will be reached up to 400 million RMB by the year of 2000.

3.As for the high-tech enterprises newly certified, the income tax shall be exempted from for two years and half income tax shall be exempted from for another eight years afterwards. As for the existing high-tech enterprises, half income tax can be exempted from for two more years in addition to the original preferences already given in relating to income tax.

4. After the expiration of the preferential period for deduction or exemption of income tax, and if the value of the products exported accounting for over 70% of the output value that very year, the enterprise income tax shall be reduced to 10% after verification by tax department and after review and approval by the relevant municipal departments. 

[1] [2] [3] [4] [5] [6]