"TEDA Regulations to Attract Investment in Advanced Technology" was passed by the first conference of the TEDA Management Committee on January 21, 1998. It takes effect upon the date of announcement.

·Chapter 1: General Principles

1. The regulations are worked out to attract the investment in advanced technology and to promote the sustaining prosperity of TEDA economy.

2. The regulations are applied to the high-technology enterprises, which have been recognized by the TEDA Science and Technology Superintendent and operating for at least 10 years in the given areas.

3. The "high-technology" in the regulations is referred to the technology based on the newest scientific achievements, high knowledge-intensive, and with high economic and social benefits. The examples are bioengineering, aviation and space flight, electronic information, electromechanical and photoelectrons, new energies (with high efficiency and low energy consumption), new materials, environment protection, marine project, radiation, and bio-pharmacy project.

4. The "high-technology enterprises" in the regulations are referred to those who engage in high-technology research, development, transfer, services, consulting, production, and sales. The definition includes the state-owned, civil and foreign enterprises.

5. The TEDA Science and Technology Superintendent recognized the "high-technology enterprises" according to "The Recognizing Qualifications and Measurements for the High Technology Enterprises in the State High Technology Industrial Area". The TEDA Science and Technology Superintendent will work out the application procedures and related regulations for the qualification of a high technology enterprise otherwise.

·Chapter 2: TEDA High and New Technology Enterprises Park and TEDA International Venture Center

1. TEDA established the High and New Technology Enterprises Park and the TEDA International Venture Center.

2. The High and New Technology Enterprises Park is the centralized area for TEDA high technology enterprises. With the qualification, enterprises can enter the park and enjoy the regulations here. It is situated to the north of the No.5 Street, to the south of No.6 Street, to the west of Nanhai Road, and to the east of Muning Road.

3. The TEDA International Venture Center is established to attract the high technology venturers both home and abroad. It provides many preferential treatments and so promotes the industrialization of high technology.

4. If a venture project is recognized and industrialized in the park as a high technology one, then the investing enterprises will receive all the preferential treatments allowed in the TEDA International Venture Center.

·Chapter 3: Preferential Policies

1. When a high technology enterprise establishes or changes into a stock company, the technology can be put in as a share. The share can take up at most 35% of the registered capital after the assets evaluation.

2. The Chinese civil high technology enterprises are free from the business administrative management fees.

3. The recognized enterprises will be given back 100% of their revenue tax for three years by the local finance beginning with the year when they make profits and 50% for the following five years.

4. After the preferential period of Regulation No.12 expires, the local finance will continue to give back the part exceeding 15% of revenue tax to the enterprise.

5. If the production value of the exporting products takes up over 50% of the total production value of the year, the part exceeding 10% of revenue tax will be given back to the enterprise.

6. For the enterprise conducting technology transfer, or technology consulting, services, and training, the local finance will give back its revenue tax for the part under RMB1,000,000 of the net income.

7. If a high technology enterprise use reinvest in, or put in its shares, or purchase other high technology enterprises in TEDA, it can be given back all the paid revenue tax corresponding to the above-mentioned investments by the local finance.

8. High technology enterprises can get the land usufruct directly through alienation in the TEDA High and New Technology Enterprises Park. 50% discount is for the alienation price. But the enterprise cannot transfer or rent the aliened land.

9. The housing of working, experiment and production will be charge-free for the projects in the incubation period in the TEDA High and New Technology Enterprises Park and TEDA International Venture Center, and negotiated rent for the enterprises in production and operation with good related working and communicating services.

10. The technology management, economy and trade organizations will provide convenient, swift and thoughtful services for the international cooperation of the high technology enterprises, including free cooperation and channel information, and free commission for visa and passport.

11. For those people who had been studied abroad and now come back, or without Tianjin permanent residential certificate, or on-job technical personnel, after examination by the Science and Technology Superintendent and approval by the Labor and Personnel Bureau, they can get the priority to go through the settle-down procedures for themselves, their spouses, and their children. TEDA will pay the city construction fees of the procedures for them and resolve the housing problems and matriculation of the children according to "The Compulsory Education Law of People's Republic of China".

12. The TEDA Management Committee will allocate 3% of the financial revenue as venture capital for high technology to support the development of the enterprises concerned in line with "The Venture Capital Funds Policies".

13. The TEDA Management Committee will vote for "Outstanding Workers in Science and Technology" annually and "Outstanding Entrepreneurs in Science and Technology" every other year and award them with prize and bounty in line with the regulations concerned.

14. The TEDA Management Committee will also award the introducers who bring scientific and technological projects in line with the regulations concerned.

15. The preferential policies here are up to the TEDA Management Committee to explain.

16. The preferential policies here take effect upon announcement.

·The Supplementary Regulations for TEDA Regulations to Attract Investment in Advanced Technology

1. This document is worked out to encourage the establishment of the enterprises engaging in computer software development.

2. "The enterprises engaging in computer software development" here is referred to the enterprises engaging in development, production and sales and with independent intellectual patents.

3. The Software Park is built in TEDA. The TEDA Management Committee provides favorable prices in water, electricity, gas and heating and financial subsidies for these enterprises.

4. The enterprises with the land usufruct used in production or operation, upon the approval of the TEDA Management Committee, will be given back 75% of the land alienation price.

5. Upon the approval of the TEDA Management Committee, the financial department will give back 100% of the enterprises' real estate tax, value-added tax (the local part), business tax and city construction tax for five years. And 50% for the following five years. The revenue tax will be all given back for ten years or up to the enterprises to choose five years as return period during their operation period.

6. After the No.5 expires for the enterprise, the sales revenue of its new products and the products in test run, which accounts for over 15% of its total sale revenue, will enjoy less-than-ten-year preferential treatments upon the approval of the TEDA financial department.

7. The enterprise can draw 3%-10% of its sales revenue before taxation as its technology development cost of the correspondent year.

8. The enterprise can use fast depreciation method for its facilities of the fixed assets upon the approval of the TEDA financial department.

9. The exit permission procedures for the personnel of the enterprise can be simplified according to the regulation "one time examination and approval, effective oftentimes".

10. TEDA provides Tianhai Boarding Houses for the personnel of the enterprises with favorable prices.

11. All the preferential regulations here are only for the enterprises engaging in computer software development in TEDA or the sub-areas in TEDA.

12. The regulations here have the same efficacy as "TEDA Regulations to Attract Investment in Advanced Technology".

13. The preferential policies here are up to the TEDA Management Committee to explain.

14. The preferential policies here take effect upon announcement.