Shanghai Municipality, Encouraging Foreign Investment in Shanghai Agricultural Industries Several Opinions

Published: August 4 2002

Main contents: The Opinions were issued with the aim of advancing the agricultural industry in Shanghai and accelerating the growth of its overseas economic ties. A wide range of agricultural industries have been designated as target areas for foreign investment, including cultivation, forestry, animal husbandry, advanced agricultural machinery, environmental protection, irrigation infrastructure, flower farming, anti-desertification, and forestry chemical products (Section One).
Section Two of the Opinions outlines policies encouraging foreign investment in agriculture in Shanghai. Equipment imported for a company's own use may receive a full exemption from customs duty and import value-added tax (Item One). Likewise, high quality seeds and fish eggs may also be exempt from import value-added tax (Item Two). Foreign-invested agricultural production companies whose term of operation are at least 10 years will be exempt from enterprise income tax for the first two years of profit making, and will receive a 50% exemption for the following three years (Item Three). A foreign investor can also receive a full or partial rebate of company income tax on funds that are reinvested in the operation for at least five years (Item Four).
Related legislation: Foreign Investment Industrial Guidance Catalogue (Amended in 2007), Oct 31 2007, CLP 2007 No.10 p22 and Major Areas That Are Currently Selected for Priority Development in High and New Technology Industrialization Guidelines