Introduction to Pingtan's preferential policies

Financial policies:

1. Pingtan has adopted a voluntary exchange system, which is an innovative move in the management of foreign exchange (FX). Once a foreign-funded enterprise has received verification of its foreign exchange capital, it can apply for FX-RMB settlement at designated banks at any time it chooses.

2. Enterprises are allowed to carry out self-disciplinary ratio management (which sets limits on the ratio between assets and liability to avoid financial risks) of their foreign loans including RMB.

3. Eligible enterprises in Pingtan are being encouraged to issue RMB bonds in Taiwan.

4. New Taiwan Dollars (NTD) are accepted in purchasing cross-Straits ferry tickets.

5. Banks and financial institutions, including those from Taiwan, are endorsed to set up subsidiaries in Pingtan.

6. Banks and financial institutions in Fujian are allowed to engage in NTD-RMB exchange business.

7. Qualified financial institutions from Taiwan can jointly set up securities companies and fund management companies in Pingtan.

8. Banks are allowed to open RMB and NTD trade current accounts to deal with inter-bank transactions.

9. Taiwan-funded enterprises are allowed to issue RMB bonds in Pingtan.

Land policies:

1. A plan on comprehensive land management and reform in Pingtan has been approved.

2. Lands for exploitation and development and the Pingtan Comprehensive Pilot Zone will be guaranteed.

3. Islands and waters under the jurisdiction of Pingtan can be developed in accordance with national laws and regulations.

Tax policies:

1. Added-value taxes are exempt for Pingtan-Taiwan shipping business as well as offshore service outsourcing business.

2. Business taxes are exempt on the income of insurance companies from international shipping insurance offered for local enterprises.

3. Enterprises with main businesses pertaining to the local industrial guidance catalogue and income from the main business accounting for at least 70 percent of their gross revenue will be given a 15 percent tax break on corporate taxes.

4. Taiwan people working in Pingtan are exempt from individual income tax.

5. Individuals can buy duty-free Taiwan products with a daily cap of 6,000 yuan at a local market dedicated to selling goods imported from Taiwan.

6. Goods related to manufacturing imported from overseas will go through record management at the No 1 customs checkpoint and enjoy tax breaks accordingly.

7. Pingtan's customs authority is trying to levy selective tariffs on goods processed and manufactured in Pingtan and exported to inland areas. To paraphrase, an exporter can choose to pay the raw materials tax to customs if that is cheaper than the tax on finished products.

8. Goods imported to Pingtan from inland areas will get tax rebates.

9. Value-added taxes and consumption taxes are exempt when sales occur between local enterprises in Pingtan.

10. The local tax revenue in the next decade will all be kept by Pingtan.

Trade service:

1. Pingtan is now a pilot zone for cross-border e-commerce.

2. The Duty-Free Taiwan Commodity Market is now in operation.

3. More open and flexible management measures have been taken up at a cross-Straits trade point at Dongao Port.

4. Pingtan is allowed to pilot (cross-Straits) express delivery by sea.

5. Pingtan is a candidate for the “Demonstration City of Service Outsourcing in China”.

Various shipping service:

1. Pingtan is allowed to pilot marine transport business.

2. Pingtan has been approved as a home port.

3. Pingtan has been approved to open sea routes for cross-Straits cargo transportation. Pingtan is also pushing to become a pilot area for ship registration.

4. Authorities in Pingtan have released a string of policies boosting the shipping industry.

Customs clearance:

1. Pingtan has been approved to set up a first-class port. The No 2 customs checkpoint and its supervision facilities have passed central authority inspection.

2. An intelligent customs supervision system has been set up covering the whole of Pingtan.

3. Imported goods are classified for inspection and quarantine and are under record management.

4. Pingtan has qualified to import cooked meat products and frozen and fresh seafood products from Taiwan.

5. Pingtan has piloted the “One and Only Window” mechanism in customs procedures, meaning it has simplified customs procedures for enterprises by setting up an information sharing system between different organs.

Convenient tourism gateway:

1. Pingtan has been approved as a pilot city to carry out the business of individual tourism to Taiwan.

2. Taiwan people can apply for a two-year visa for unlimited travel to the Chinese mainland and a five-year residence visa in Pingtan.

3. Pingtan is pushing to allow Taiwan vehicles to drive in Pingtan.

Social benefits for Taiwan people in Pingtan:

1. Professionals in the construction and medical industries in Taiwan are allowed to start businesses in Pingtan.

2. Taiwan people living and working in Pingtan can participate in the same pension and medical insurance benefits locally in accordance with the Chinese mainland's policies.