In order to attract more foreign investors to participate in the development of the Xinjiang Uygur Autonomous Region, Xinjiang has formulated and adopted relevant policies and regulations.
According to the regulations, the prospecting, mining and processing of nonferrous metals, ferrous metals and non-metal minerals are taken as one of the key industries in which foreign investment is encouraged, the investors can thereby enjoy the special preferential policies.
These policies include: those foreign-funded enterprises, which are engaged in the mining of mineral resources (oil and natural gas resource mining projects excluded), are deferred the payment of resources tax for five years from the date of completion and going into production; for recoverable, associated minerals for comprehensive mining, mineral resources compensation is levied at a 50 percent reduction rate; with regard to geological prospecting expenses on mineral deposits proven to be exploitable within the prospecting area and to be mined according to law, after commercial mining begins, the mine can be regarded as deferred assets and amortized on an annual basis before tax payment. Those who contribute an actual amount of money exceeding US$5 million can, beginning from the day of production and operation, enjoy a 10 percent financial subsidy not exceeding the VAT paid by the enterprise, for a period of five years. An enterprise that obtains the state-owned land use right by the leasing method is exempt from the payment of 50 percent land rent from the sixth to the tenth year of operation. An enterprise that obtains the land use right by remising and plans to operate for a period of 30 years is exempt from the payment of 30 percent remising fees. For other land use rights, the remising fees can be put on account and paid off by installment in five years from the day of production and operation. The land used can be sold or leased at the local base land price.
(People's Daily 10/19/2000)
