Finance and taxation policies
　　I. Income Tax
　　With the national and provincial relevant preferential policies concerning the income tax of foreign-invested enterprises applicable, from the third year on to the tenth year ever since profits are made, the income tax that should be paid in duty by foreign-invested enterprises is first collected by the taxation agency, and then the same amount as the net income of the development zone is to be refunded by the finance agency at the same level. With the national and provincial relevant preferential policies concerning the income tax of domestically cooperative enterprises applicable, from the fourth year on to the sixth year ever since the start of business, the income tax that should be paid in duty by domestically cooperative enterprises is first collected by the taxation agency, and then the same amount as the net income of the development zone is to be refunded by the finance agency at the same level; from the seventh year on to the tenth year, the same amount as 60% of the net income of the development zone is to be refunded.

Land-related Policies
　　I. Land for an investment project may be transferred in light of national regulations on the transfer of landuse right on the basis of the principle of open, fairjust, impartial and honest. Investment companies from home and abroad may attain the land-use right by purchase, transfer, lease, buying shares and so on..
　　1. Duration of Land-use Right
　　(1) Duration of land-use right attained by transfer: 50 years: land for industry, education, science and technology, culture, public health or sports 40 years land for commerce, tourism or recreation50 years: land for multiple purposes.
　　(2) Duration of land-use right attained by lease10 years: land for residence8 years: land for industrial use6 years: land for education, science and technology, public health or sports5 years: land for commerce, tourism, recreation or multiple purposes2 years: land for temporary use The owner who attains the land-use right by transfer may rent out the land during the term of validity on condition that alterations are made at the relevant registration agency. The duration of land-use right may be extended if applied for and approved.
　　2. The transfer of land-use right is charged based on market price, basic land price (requisition of land and construction of accessories completed) or prices determined in relevant regulations.
　　(1) For non-productive project like real estate, the land transfer is charged based on the market price.
　　(2) For general productive projects, the land transfer is charged based on the basic land price.
　　(3)For productive projects of high-tech research and development and production of high-tech products, and for large- scale industrial projects with good outputs, the land transfer is charged based on government-subsided price. The subsidy provided by the government varies according to the returns of certain projects.
As regards investment in high-tech, infrastructure, bio-resource exploitation, mineral deposits exploitation, tourism development, machinery and automobile production, and large-scale heavily-taxed productive projects which earn much in net foreign exchange profit from exports, land-related preferential policies are given in accordance with the investment scale of fixed assets in light of national, provincial and municipal regulations.

Finance and taxation policies
　　I. Income Tax
　　With the national and provincial relevant preferential policies concerning the income tax of foreign-invested enterprises applicable, from the third year on to the tenth year ever since profits are made, the income tax that should be paid in duty by foreign-invested enterprises is first collected by the taxation agency, and then the same amount as the net income of the development zone is to be refunded by the finance agency at the same level. With the national and provincial relevant preferential policies concerning the income tax of domestically cooperative enterprises applicable, from the fourth year on to the sixth year ever since the start of business, the income tax that should be paid in duty by domestically cooperative enterprises is first collected by the taxation agency, and then the same amount as the net income of the development zone is to be refunded by the finance agency at the same level; from the seventh year on to the tenth year, the same amount as 60% of the net income of the development zone is to be refunded.
　　1. Income tax paid by domestically cooperative enterprises
　　(1) Newly-built non-public enterprises (such industries excluded as limited by the state) are exempted from paying income tax for three years on end. (Document number: Yuncaishui [2003] No. 19)
　　(2) Newly-built enterprises from outside Yunnan Province that meet the stated requirements is to enjoy an exemption from income tax for the first three years and 50% off for another two years or an exemption for two years. (document number: Yuncaishui [2003] No. 19)
　　(3) Until the year 2010, examined and confirmed by the provincial taxation agency, enterprises whose main business is on the list of the Industries Encouraged by the Stat and whose income on the part of the main business exceeds 70 per cent of the total income, pay the income tax at a rate of 15%.
　　(4) Until the year 2010, ever since the start of business, enterprises that invest to newly build projects engaged in such basic industries as communications, electricity, water conservancy, postal service, radio and television broadcasting, and whose income on the part of the above-mentioned business amounts for 70 per cent or more of the total income, are exempted from paying income tax for the first two years and pay 50 per cent for the third year to the fifth year if ratified by the provincial taxation agency.
　　(5) Enterprises that use waste materials like wastewater, waste gas and waste residue as raw materials may enjoy an exemption or reduction in income tax for 5years. (document number: Caishuizi [94] 001)
　　(6) As regards Yunnan-based enterprises investing overseas, no income tax is to be collected for five years on post-tax profits made by the Chinese investors; from the year 2010 on when the duration of tax exemption is due, the income tax will be collected a rate of 15%.
　　2．Income tax paid by foreign-invested enterprises
　　Foreign-invested enterprises enjoy preferential policies concerning income tax in accordance with the People's Republic of China's Law of Income Tax on Foreign-invested and Foreign Enterprises and its regulations for implementation.
　　II. Value Added Tax and Business Tax
　　Ever since of the start of business, the value added tax (VAT) or business tax that should be paid in duty by foreign-invested enterprises or non-public domestically cooperative enterprises, is first collected by the taxation agency and then the same amount as the local net income is to be refunded after deducting the turnin portion by the finance agency for the first year; 70 per cent of the local net income is to be refunded for the second year; 50 percent from the third year on to the fifth year. As regards enterprises from outside Qujing buying the shares of local enterprises and becoming major shareholders and enterprises set up by means of acquiring, purchasing and renting local enterprises by outside investors, ever since the start of production, the VAT or business tax will be collected first and then, after deducting the turn-in portion, the same amount as the increment over the VAT or business tax of the previous local enterprise is to be refunded for the first year; 70 per cent for the second year; 50 per cent from the third year on to the fifth year.
　　Ill. Farmland Occupation Tax
　　The farmland occupation tax that should be paid in duty by enterprises investing in such industries as infrastructure construction, energy, chemical industry, metallurgical industry, machinery, automobile, and bio-resources exploitation, is first collected by the agency of local taxation, and then the same amount as 50 per cent of the income of the development zone is to be refunded by the finance agency. The farmland occupation tax that should be paid in duty by enterprises investing in road-building is first collected by the agency of local taxation, and then the same amount as the income of the development zone is to be refunded by the fianc agency.
　　IV. The expenditure on the research and development of new products, new techniques and new technologies can be deducted before enterprises pay the income tax. As regards profit-making enterprises that have complete accounting system and pay income tax with account checked, when the actual expenditure on the research and development of new products, new techniques and new technologies increases by 10 per cent or above over that of the previous year, the actual expenditure can be deducted from the total sum that should be taxed as income tax before enterprises pay the income tax and the enterprises may demand that the same amount as 50 per cent of the expenditure be deducted from the total sum that should be taxed as VAT. Foreign-invested enterprises and domestically cooperative enterprises in the development zone are allowed to help supply each other's needs of foreign currency under the supervision of the agency for the administration of foreign currency.
　　With the national preferential policies applicable, foreign-invested enterprises in the development zone may enjoy parts of the preferential policies given to the foreign-invested enterprises in Kunming by the provincial government. Approved by the customs, the development zone may set up bonded workshops and warehouses. In accordance with relevant regulations on processing materials supplied by foreign customers for re-export and taking into consideration the number of materials processed and exported, the customs may exempt enterprises from paying customs tariffs, import-related duty and imported-related VAT.