How did North Korea create foreign exchange?

Investment guide of the Democratic People's Republic of Korea

I. Investment policy

Foreign legal persons or individuals are encouraged to invest in the form of joint ventures and cooperation, and foreigners are allowed to set up independent enterprises in special economic zones. The law protects the property invested by foreign investors.

Second, the general investment conditions

Infrastructure situation:

1. Transportation: All roads, cities and counties in North Korea are connected by railways and highways. There are railways to China and Russia. There are Jinqing Port, Nanxing Port, Yuanshan Port, Luojin Port and Jin Ce Port on the east coast, and Nanpu Port, Haizhou Port and Songlin Port on the west coast.

2. Electricity:

Main hydropower plants: Shuifeng Power Plant, Yunfeng Power Plant, Zhangzijiang Power Plant, Changjiang Power Plant, March 17 Power Plant, Xuchuanjiang Power Plant, Datongjiang Power Plant, Anbian Youth Power Plant, Xichuan Power Plant, Jiang Jie Youth Power Plant and Weiyuan Power Plant.

Main thermal power plants: Beicang Thermal Power Joint Venture, Pyongyang Thermal Power Joint Venture, Jinqing Thermal Power Plant, East Pyongyang Thermal Power Plant, June 16 Thermal Power Plant, Shunchuan Thermal Power Plant.

3. communication:

Pyongyang and Luoxian have international communication centers, which can send and receive wired and wireless telephones, faxes and telexes with all regions of the world. Laying optical fiber between the local city and Pyongyang.

4. Banks:

As an issuing bank, there is a central bank with branches in various provinces, cities and counties; As foreign exchange banks, there are Trade Bank, Korea Sheng Da Bank, Korea Commercial Bank, Korea Bank, Korea Unified Development Bank and Korea Jinxing Bank. Interest rate: the prepayment rate is 3-4.5%/ year, and the loan rate is 8- 12%/ year.

Three. Business license and registration

1. Korea Council for the Promotion of Foreign Economic Cooperation. The DPRK Foreign Economic Promotion Committee has relevant departments such as investment promotion, examination and approval of investment objects, and statistics of service data of foreign-funded enterprises.

2. Investment application and license: the documents (including contracts, articles of association and economic and technical inspection reports) for the establishment of the enterprise shall be submitted for examination and approval by the central competent trade authority.

3. Enterprise registration: The approved enterprise shall make the official seal of the enterprise according to the enterprise establishment license document, open an account in the relevant bank, and go through the registration formalities with the people's committee of the road (city) where the enterprise is located. Since the date of enterprise registration, the enterprise has the status of a legal person, and after the enterprise registration, it goes through tax registration and customs registration.

Four. tax

Corporate tax:

1, corporate income tax: 25% of the settlement profit; Encourage departments to settle10% of profits; Enterprise income tax shall be paid in advance quarterly and settled annually.

2. Transaction tax: the transaction tax rate is 1- 15% of product sales, and 16-50% of luxury goods. Export products and products sold in China according to national requirements are tax-free.

3. Business tax: 2- 10% of the service income of the service department and the construction delivery income of the construction department.

4. Local taxes: Local taxes include urban operation tax and car use tax, with urban operation tax accounting for 65,438+0% of the total monthly salary and car use tax accounting for 65,438+00-65,438+000 euros per car.

Taxes for foreigners:

1, personal income tax: income from labor remuneration. If the monthly labor remuneration is less than 500 euros, personal income tax shall be exempted, and the above part shall be paid 5-30%; Income from interest, income from distribution, income from leasing fixed assets, income from providing intellectual property rights and non-patented technology, and income from providing business-related services shall be taxed at 20%; Gift income tax, income tax below 5,000 euros is exempt from personal income tax, and income tax above 5,000 euros is paid at 2- 15%; Pay 25% personal income tax on the income from the sale of real estate.

2. Property tax: the property tax rate is 1-65438+ 0.4% of the registered property value. Buildings, ships and planes owned by foreigners in * * * and China are subject to property tax. Buildings include houses, villas and ancillary buildings, and ships and planes include their own ships and planes.

3. Inheritance tax: the tax rate of inheritance tax is 6-30% of the inheritance amount.

4. Local tax: 65,438+0% of the total monthly salary is applicable, and 65,438+00-65,438+000 euros is paid for each vehicle for 65,438+0 years.

Verb (abbreviation for verb) labor

Working hours, vacations and rest: working days are six days a week, working hours are eight hours a day, and national statutory holidays are 15 days a year.

Labor remuneration: salary: 80- 120 euros per year for general labor; Subsidy: the salary (subsidy) during the training period is 60% of the monthly salary; Dismissal and resignation allowance: if the length of service is less than 1 year, the allowance equivalent to the last month's salary will be given; if the length of service exceeds 1 year, it will be based on the average monthly salary of calculate length in the last three months.

Jin Jin: extended working hours in the day shift: 50% of salary; Night shift work: 50% of salary, extended night shift:100% of salary; Holiday work: 65438+ 000% of salary; The bonus company will pay it itself.

Labor protection and vacation:

Labor protection: It is forbidden for 16-year-olds to work. During the period of labor safety technical education, according to the business type and type of work, the time is one to two weeks. Female workers who have been pregnant for more than six months shall not be arranged to engage in heavy and harmful work.

If the employee suffers from occupational diseases or work-related injuries during the medical treatment period, and the medical treatment period does not exceed six months, the female employee shall not be dismissed during the marriage leave, pregnancy, childbirth and lactation period.

Vacation: Fourteen paid holidays (including Sundays) should be arranged every year.

Social insurance and social security:

Enterprises should pay social insurance premiums at 7% of employees' wages for social insurance and social security. Social insurance and social security benefits include subsidies, payment of annuities, rest and treatment.

Preferential treatment of intransitive verbs

Preferential tax treatment:

1, encourage departments to reduce or exempt taxes. The corporate income tax rate of encouraged departments is10% of the settlement profit; If the business period of enterprises in encouraged sectors is more than ten years, enterprise income tax will be exempted from the first year to the third year from the profit-making year, and enterprise income tax will be halved in the fourth and fifth years; If the total investment exceeds 30 million euros, the enterprise income tax will be exempted from the first to fourth years from the profit-making year, and the enterprise income tax will be halved from the fifth to seventh years.

2. Other objects. The income tax of cooperative enterprises cooperating with Korean compatriots in the Republic of Korea is 20%; Cooperative enterprises and joint ventures that cooperate with Korean compatriots in the Republic of China shall be exempted from income tax from the first year of profit, and shall be levied at half in the next two years.

3. If the profits obtained from the enterprise are reinvested and the operating period is more than five years, all the enterprise income tax will be returned to the infrastructure construction department, and 50% of the income tax will be returned to other departments.

4. Export products with transaction tax can be exempted from transaction tax.

5. Dividend income. Dividends obtained by foreign investors shall be exempted from dividend income tax.

6. Tax compensation for business losses. The tax compensation for operating losses of investment enterprises may be extended year by year, but the longest period shall not exceed four years.

7. The object of tariff exemption: the import tariff of the fixed property that belongs to investment; Import duties on raw materials, materials and commercial materials that belong to investment; Export tax on products produced by export enterprises.

Foreign exchange import and export:

Profits lawfully obtained by foreign-invested enterprises may be exempted from being remitted abroad; 60% of the foreign exchange legally obtained by individuals can be remitted abroad.

The uniqueness of management:

Enterprises can decide their own management methods; Technicians and technicians of special trades may employ foreign workers.

Import and export:

An enterprise may import and export the equipment, raw materials, materials and business information needed for production, or export its products within the approved scope of work without having to apply for an import and export license separately.

Seven. Other conditions

Entry and exit:

Foreign investors wishing to enter the country will send their names, gender, nationality, positions and passport numbers to the inviting unit, which will submit these information to the relevant authorities. With the approval of the relevant authorities, it will issue visa instructions to foreign diplomatic or consular institutions.

International routes:

Route number

Air pipeline

Departure time/landing time

Times/week

week

JS 15 1/ 152

Pyongyang-Beijing-Pyongyang

9:00 / 14:00

Tuesday, Saturday

JS 155/ 156

Pyongyang-Shenyang-Pyongyang