Kinmen County Autonomy Ordinance on Encouragement of Investment promotion
Janurary 14, 2003
Article 1 To encourage non-governmental investment, facilitate industrial development and flourish local economy, this Autonomy Ordinance is made by the Kinmen County Government( hereinafter referred to as the “Government”)
Article 2 For purpose of this Autonomy Ordinance, the industries to be encouraged include：
2. Agricultural-industrial-commercial aquatic products processing industry;
3. Traditional industries in Kinmen County;
4. Hi-tech industries;
5. Other industries as approved by the Coordination and Discussion Team for Investment Promotion of the Government.
Article 3 Any of the industries mentioned in the foregoing article shall meet the requirement that the total investment exceeds NT$30,000,000 and the number of supplemented employees exceeds 30.
For purpose of this article, the total investment includes building and structure, plant, machinery and equipments and other investment in kind, but not includes land.
Article 4 Any industry in conformity with this Autonomy Ordinance shall be given preferential stipulated in Article 5 to Article 8 in part or whole according to the type of industry and the amount of investment.
Article 5 The acquisition of land shall be dealt with in conformity with the following sub-articles：
1. Land within the industrial zone developed by the Government may be rented for use preferentially.
2. For self-developed projects:
(1) Any public land shall be dealt with in accordance with Paragraph 1 of Article 8 of the Isolated Islands Construction Act.
(2) Provide assistance to the investors to apply for state-owned land to Jinma Sub-Office, North Area Office, Department of National Treasure, Ministry of Finance in accordance with “Guidelines for Treatment of Provision and Development of State-owned Non-Public Land”.
(3) In the case that the regulations on industrial and commercial combination zone are fulfilled, the Government shall be responsible for variation of use of land.
(4) In case of privately-owned land, the lease of land and property transferring shall be completed by the investor, and then variation of use of land shall be dealt with in accordance with relevant regulations.
(5)The Government shall provide assistance with the investors for the acquisition of any land administered by the National Park Administration and the Defending Department of Kinmen County.
Article 6 The acquisition of capital shall be dealt with as follows:
1. In the case that the requirements for “Local Construction and Development Fund Loan”, the investor may apply for venture loan up to NT$ 5,000,000.
2. The Government shall provide assistance with the investors in financing and loan affairs in accordance with the Ordinance on the Development of Mid-small Size Enterprises.
3. In the case that any investor applies for loan from local financing institutions, the Government shall grant interest subsidies to the investor as follows：
(1)Amount of loan：the interest subsidy shall be granted to up to 1/2 of the total investment with the ceiling of NT$ 50，000，000 . The cost for acquisition of land shall not be included herein.
(2) Interest subsidization ：10% of interest payable shall be subsidized for the 1st and 2nd year, and 8% of interest payable shall be subsidized for the 3rd and 4th year. Non-interest expenses, such as liquidated damages, shall not be included herein.
(3)Guarantee conditions ：The acquired land, building, machinery or equipment of the investor shall be taken into pledge in order, and shall be guaranteed by financial institutions.
(4) Investors shall carry out development within the time limit. In case of failure in carrying out the development in time, the interest subsidies shall be cancelled and the subsidized amount shall be refunded. In addition, the investor shall pay liquidated damages to the Government.
Article 7 The taxation credit and exemption shall be dealt with as follows:
1. In the case that the investor makes investment with an amount exceeding NT$ 30,000,000 on the land of the county, the investor shall be exempted from land rental for five years since the date the agreement is made, 1% of the land price shall be charged from the 6th year as annual interest, and the maximum term is ten years.
2. In the case that the investor makes investment on privately-owned land, the total amount of land value tax and house tax shall be subsidized to the investor for the first two years, and 50% of the amount of land value tax and house tax shall be subsidized to the investor from the 3rd year to the 10th year. At the same time, the amount of deed tax shall be reduced in accordance with the Autonomy Ordinance for Reduction and exemption of Land Value tax, House Tax and Deed Tax for the Promotion of Participation in Important Public Construction of Non-governmental Organizations.
3. In the case that the investment project meets the requirements stipulated in the Law for the Promotion of Participation in Important Public Construction of Non-governmental Organizations, the income tax for profit-making business shall be exempted.
4. The Government shall provide assistance with the investors for dealing with taxation credit and exemption in accordance with the Ordinance for the Promotion of y Industrial Upgrading.
Article 8 The grant of encouragement incentive shall be dealt with as follows：
1. NT$ 100,000 shall be granted for each NT$ 50,000,000 of investment capital. The encouragement incentive shall not be granted for any investment capital less than NT$ 50,000,000.
2.For each of the employed local residents, the investor shall be granted NT$ 20,000 of encouragement incentives.
3.Granting Method：The encouragement incentive shall be granted by 3 stages:
(1)The 1st Stage: 1/4 of the encouragement incentive shall be granted after the permit for construction is issued.
(2)The 2nd Stage: 1/4 of the encouragement incentive shall be granted after the permit for use of as-built building and the Profit-making Business Registration Certificate is issued.
(3)The 3rd Stage: 1/2 of the encouragement incentive shall be granted 3 months after the investment is put into operation.
Article 9 Public facilities needed for the investment projects shall be dealt as follows:
1. The Government shall develop and re-build externally-connected roads in industrial zones developed by the Government according to the construction term of the investment projects.
2. The Government shall make coordination between the departments in charge of water, electricity, telecom and sewage for relevant pipelines and other public facilities.
3. In case of privately-owned land, the investor shall start construction after going through formalities for land leasing and property transferring, and the Government shall cooperate with the investor in relevant affairs according to the foregoing two sub-articles.
Article 10 A Coordination and Discussion Team for Investment Promotion shall be established to solve and make coordination for problems arising from investment.
The guidelines for the establishment of Coordination and Discussion Team for Investment Promotion shall be prescribed by the Government otherwise.
Article 11 Any investor may work out investment plan on the land selected or the land within the industrial zone planned by the Government and make application to the Government.
The format of application form shall be prescribed by the Government otherwise.
Article 12 The investors shall cooperate with the Government in the following affairs:
1. Employment proportion: The priority of being employed shall be given to residents of the county; in no event shall the proportion of local residents be less than 50% of the total amount of the employed. Encouragement incentive shall be given according to actual number of employed local residents.
2. Development Term: The development shall be implemented within one year after the development plan is examined and approved, otherwise the interest subsidized by the Government shall be paid. In case of lease of public land, the land rental shall be paid, and 10% of the subsidized interest and rental shall be paid as liquidated damage.
3. Business Term: Not less than 10 years.
4. The investors shall submit the application form for taxation credit and exemption on land value tax, house tax or deed tax and relevant documents to the Government for allying for taxation credit and exemption.
5. The investors shall submit relevant documents as evidences while applying for encouragement to the Government.
The investors shall sign an agreement with the Government for enjoying preference stipulated in this Autonomy Ordinance.
Article 13 The rights and responsibilities of departments of the Government shall be as follows；
1.The Department of Finance: Disposal of public land, interest-free loan for venture of youth and loan for local construction and development fund, making coordination between local financial organizations in financing affairs in accordance with laws and ordinances enacted by the central government, and the supply of data about the land of the county
2.The Department of Industrial Affairs: Variation of urban land planned to use, detailing of plans and programs, construction management, establishment and development of public facilities and externally-connected roads within the industrial zone and the supply of data about planned urban industrial zones
3.The Department of Tourism: Investment on development of tourism, recreation and relaxing facilities.
4.The Department of Land Affairs: Land transferring, delimitation, division and levying and the tutoring of laws and regulations related to land affairs.
5.The Department of Environmental Protection：Provide the enterprise to deal with environmental impact assessment affairs.
6.The Division of Taxation: Taxation credit and exemption.
7.The Department of Construction: Water and land conservancy, investment offset, harbor construction, coordination of water, electric and telecom operation, management of industrial zone and overall coordination.
8. Matters not stipulated herein shall be dealt with in accordance with relevant laws and ordinances.
Article 14 In the case that any other law or ordinance provides more preferential measures on investment promotion, such law or ordinance shall prevail.
Article 15 The date of implementation of this ordinance is to be stipulated by the Government otherwise.