1. With an aim to accelerate new Hi-tech progress, encourage foreign merchants to invest new Hi-tech R&D and industrialized projects, these regulations are formulated in accordance with relevant laws, regulations and policies as well as the real situation in the city.

2. The new advanced technology here refers to new advanced technology R&D task and industrialized projects which conform to the development plan of new advanced technology industry and ratified by the new advanced technology assessment agency in Tianjin, which include the ongoing and proposed tasks and projects.

3. The foreign merchants here refer to both economic organizations such as financial institutes, funds and companies from abroad and Hong Kong, Macao, Taiwan etc., and individuals. Domestic economic organizations or individuals who have foreign capital and use it to invest by the law.

4. The law for new advanced technology R&D tasks or industrialized projects using foreign investment should establish R&D institutes or enterprise legal person. The foreign merchants, if approved, can set up R&D institutes or enterprise legal person through establishing Sino-foreign investment projects, Sino-foreign cooperation and foreign investment projects with schools, scientific research institutes, enterprises and other economic organizations in China. Those whose have established R&D institutes, after checked by the science and technology department of Tianjin, will be examined and approved according to relevant regulations, and submitted to the Tianjin Bureau of Finance for the record. Those whose have established enterprises will be examined and approved according to current relevant regulations on establishing foreign invested enterprises.

5. Foreign invested new advanced technology R&D institutes and enterprises have the power to run their business without interference from any department and individual.

6. The achievements made by the foreign invested new advanced technology R&D institutes, by applying to Tianjin science and technology departments, will be entrusted to qualified assessment agency to evaluate. Such achievements can be transferred locally and internationally. Achievements for foreign transfer can be assessed in the foreign country in accordance with international practice and the relevant regulations there.

7. The achievements made by the foreign invested new advanced technology R&D institutes enjoy the same intellectual property rights and other legal rights as the similar achievements made locally. Each party of the cooperation must keep secret as provided in the contract.

8. The foreign invested new advanced technology R&D institutes enjoys the following preferential conditions:

(1) Income earned from technical service for technical achievements transfer, technical training, technical consultation, technical service and technical contract, will be exempted enterprise income tax and business tax, and the exemption of income tax will be made by the government through paying back. Long investment profits through shares holding will not be covered in gained money after paying tax that they should pay.

(2) Products by expanded intermission tests, after ratified by Tianjin science and technology departments, are new products (products with special regulations will be ratified by relevant administrative authorities). Profits earned by new products and patent products classified as national-level will be exempted enterprise income tax for 3 years since the day of sale; and those classified as city-level will be exempted enterprise income tax for 2 years since the day of sale.

(3) Depreciation time limit of equipment used for expanded intermission tests can be reduced to 30%~50% the basic time limit specified by the government because of its increased intensity of operation after approved by tax authority.

(4) Imported equipment, instruments, chemical reagent and technical data which are directly used for new advanced technology R&D task will be exempted tariff and import tax according to relevant national regulations.

(5) Income earned after tax through tangible and intangible assets transfer by foreign invested new advanced technology R&D institutes can be used as capital for further overseas and domestic investment. Domestic investment part can enjoy the current preferential policies for the re-investment by profits earned by foreign investment enterprises. That income which is posted overseas can be cashed in indicated bank after approved by departments responsible for foreign currency management. Of course, the income tax for profits earned by posting overseas is also exempted.

(6) The ratified foreign-invested new advanced technology R&D institutes, within 3 years since the day of ratification, will pay back land selling fees appropriated by the local authority; and will be exempted procedural fees and property right registration fees for purchasing real estate used for manufacturing and operation; will be exempted surcharge on water supply and drainage and gas supply, and surcharge on electricity in the course of the project construction; will pay other legal charges in accordance with current lowest standard.

9. The foreign-invested new advanced technology industrialized projects can either be treated as foreign invested enterprises or hold shares of, merge with and purchase the existing enterprises. Formalities about the examination and approval will be dealt with in accordance with current laws and procedures.

10. The foreign-invested new advanced technology industrialized projects enjoy the following preferential policies:

(1) New advanced technology enterprises which register at Tianjin new advanced technology industry field will pay the income tax at the ratio of 15%; as for new advanced technology enterprises which register at Tianjin new advanced technology industry field, if ratified by new advanced technology assessment agency, the local part of their income tax can be dealt with by referring to the policy of Tianjin new advanced technology industry field; As for enterprises which undertake important new advanced technology industrialized projects, the municipal financial department will take 50% from the newly-added value-added tax of the enterprise each year for a period of 3 years to make up the municipal science and technology development fund, which is primarily used for enterprise development technology, attracting talents and rewarding entrepreneur.

(2) The expansion of investment by the foreign-invested new advanced technology enterprise for the purpose of earning or increasing profits for themselves includes directly increasing registered capital for their own enterprise and investing other foreign invested enterprises in our city whose remaining time limit of operation is not less than 5 years, the foreign merchants will be treated preferentially such as getting back the income tax for the reinvestment part in the very year. If the enterprises receiving such re-investment are of advanced technology or products export-oriented, the foreign merchants will get back the whole sum of the income tax they have paid for the reinvestment part in the very year; and if the enterprises receiving such re-investment are otherwise not of the above mentioned two types, they will get back 40%.

(3) The ratified foreign-invested new advanced technology R&D institutes, within 3 years since the day of ratification, will pay back land selling fees appropriated by the local authority; and will be exempted procedural fees and property right registration fees for purchasing real estate used for manufacturing and operation; will be exempted surcharge on water supply and drainage and gas supply, and surcharge on electricity in the course of the project construction; will pay other legal charges in accordance with current lowest standard.

(4) The ratio of selling products abroad and at home is free of limitation, unless otherwise provided in national regulations.

(5) If the achievements of new advanced technology are used for investment as intangible asset, the intangible asset can amount up to 35% of the registered capital of the enterprise. Each party of the cooperation, if they have agreement, is subject to such agreement.

(6) The value of the achievements of new advanced technology used for investment as intangible asset should either be assessed by qualified assessment agency, or be recognized by each investor through negotiation together with agreement in writing, and then registered at industrial and commercial administrative authority.

(7) Enterprises conferred the title "Tianjin Excellent Enterprise of Foreign Invested Technology" enjoy preferential treatment exclusively for enterprises of advanced technology type, such preferential treatment of course is not repeated in this very regulation. If the enterprises are products export-oriented, they can enjoy preferential treatment exclusively for enterprises of export-oriented type, such preferential treatment of course is not repeated in this very regulation.

11. The foreign-invested new advanced technology R&D institutes and enterprises that enter TEDA International Initiation Center, Tianjin New Advanced Property Field Initiation Center, Protective Tax Area Science & Technology Field of Tianjin Port, their rented office, labs and factories are exempted rental in the 1st year, and charged at a certain percentage of the standard rental in the 2nd and 3rd year.

12. If the foreign invested R&D centers import equipment for self use and its auxiliary know-how, accessories and spare part which can not be produced locally or whose performance can not meet the requirement, they are exempted tariff tax and import surcharge. And their technical transfer are free of business tax by referring to domestic science and research institutes.

13. If technical development cost used in technical development in China by the foreign-invested R&D institutes and enterprises increases by more than 10% inclusively compared with that of the previous year, they are permitted to use 50% of the actual cost for technical development to offset the money they gain from tax paying in the very year.

14. Foreign merchants are encouraged to start such intermediary service agency and fund organizations as new advanced technology consultation and information etc, whose legal rights will be protected according to law.

15. If there are repetitions between preferential policies mentioned in Article 8 and 10 in this regulation and current regulations which encourage foreign merchants' investment, they can enjoy the more preferential policy but not the same policy twice.

16. The relevant functional departments in the city will be responsible for the preparation and execution of all the detailed rules of implementation.

17. This regulation will be put into effect since the day of release.