Shanghai Municipality, Accelerating the Development of Shanghai's Freeway Network Several Policy Opinions

Issued: November 23 2000

Main contents: The Opinions propose a number of policies in relation to the construction of Shanghai's freeway network and the relevant departments are expected to formulate specific implementation rules on the basis of these policies (Item 19). In respect of taxation, the Opinions propose that foreign invested freeway projects in Pudong New District be exempt from all enterprise income tax for five years beginning from their first profitable year and from half of the tax for five years thereafter and that other foreign invested highway projects in Shanghai be eligible for a reduced enterprise income tax rate of 15% (Items Six and Seven). The Opinions also require the relevant departments to provide timely and appropriate solutions and compensations if the rights and obligations of a freeway project company are materially affected by changes in applicable laws or regulations or by force majeure (Item 15). In respect of attraction of foreign investment in relation to freeway projects, the Opinions state that the municipal works bureau is authorized by the municipal government to act on its behalf (Item 18).