In order to encourage technological innovation, develop high technology and promote the industrialization level of Shanghai Minhang Economic and Technological Development Zone (hereinafter referred to as Minhang Development Zone), according to the relevant policies of the state and this Municipality on encouraging foreign investors to set up various research and development institutions, combined with the actual situation of Minhang Development Zone, the measures and corresponding preferential policies for encouraging foreign investors to invest in Minhang Development Zone are formulated. 1. The Management Office of Minhang Development Zone has set up a steering group for the development of high and new technology, which is responsible for guiding foreign-invested enterprises to set up various R&D institutions in the Development Zone and guiding existing enterprises in the Development Zone to set up R&D branches within their enterprises; Help R&D institutions to introduce outstanding talents and solve the special difficulties of senior technicians; Responsible for the scientific and technical personnel who will make special contributions to technological innovation and high-tech development and achieve remarkable social and economic benefits, and give priority to recommending honorary titles and enjoying government subsidies to government departments; Responsible for selecting and awarding the honorary title of scientific and technological hero of Minhang Economic and Technological Development Zone to scientific and technological personnel who have made special contributions to the development of high technology in the region. 2. Where it is necessary to invest in establishing various R&D institutions in Minhang Development Zone, the investor shall submit the relevant materials for establishing R&D institutions to the project examination and approval office of Minhang Development Zone, and the project examination and approval office shall conduct an examination according to the provisions of the Notice on Issuing (Interim Provisions on the Establishment of R&D Institutions by Foreign Investment) issued by Shanghai Foreign Investment Working Committee and Shanghai Science and Technology Committee [No.81 (2) of Shanghai Foreign Investment Commission], and after the examination and approval, report it to the Municipal Foreign Investment Commission for examination and approval. 3. Minlian Company will give preferential treatment to the newly established R&D institutions in Minhang Development Zone, where the land, office and experimental premises needed for research and pilot test are approved by the project examination and approval office of Minhang Development Zone. Among them, the site development fee for the required land shall be given certain preferential treatment according to the existing charging standard; For the office and experimental rooms to be rented, the rent will be zero for the first and second years, 4% of the standard rent will be charged for the third year, and 8% of the standard rent will be charged for the fourth year. 4. Enterprises in Minhang Development Zone have been approved to invest in the establishment of R&D branches or R&D departments within the enterprise, and the charging standards for site development fees and office and laboratory rents for newly-added land needed for research and pilot projects shall be implemented in accordance with the provisions of the third paragraph of these Measures. With the approval of the foreign exchange administration department, the R&D branches of foreign-invested enterprises established within foreign-invested enterprises may open special foreign exchange accounts in designated foreign exchange banks, and their foreign exchange receipts and payments shall be handled in accordance with the current foreign exchange administration regulations. 6. Foreign-invested R&D institutions shall be exempted from customs duties and import value-added tax on scientific research equipment and technologies, accessories and spare parts imported with the equipment in accordance with the contract, except for the goods listed in the Catalogue of Imported Goods for which domestic investment projects are not exempted from tax as stipulated in document No.37 of the State Council (1997). 7. According to the relevant provisions of the Notice of the General Administration of Customs on Further Encouraging Foreign Investment on Import Tax Policies (No.791 [1997] of the General Administration of Customs), the established foreign investment research and development center shall, within the original approved business scope, update or maintain the original equipment of the enterprise, import equipment for its own use that cannot be produced in China or whose performance cannot meet the needs (that is, goods that are not listed in the Catalogue of Imported Commodities for Domestic Investment Projects), and 8. The software fees paid overseas by foreign-invested R&D institutions for importing advanced technologies listed in the National Catalogue of High-tech Products shall be exempted from customs duties and import value-added tax according to the relevant provisions of the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Implementing the Relevant Tax Issues (Decision of the Central Government of the State Council on Strengthening Technological Innovation, Developing High-tech and Realizing Industrialization) (Caishuizi [1999] No.273). 9. The income of foreign-invested R&D institutions engaged in technology transfer, technology development and related technical consultation and technical service business shall be exempted from business tax according to the relevant provisions of the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Implementing the Relevant Tax Issues (Decision of the Central the State Council on Strengthening Technological Innovation, Developing Hi-tech and Realizing Industrialization) (Caishuizi [1999] No.273). 1. According to the relevant provisions of the Notice of the General Office of the State Council on Forwarding the Opinions of the Ministry of Foreign Trade and Economic Cooperation and Other Departments on Further Encouraging Foreign Investment (No.73 [1999] of the State Council), the research and development expenses of foreign-invested R&D institutions have increased year by year, and enterprises with an increase rate of more than 1% can be deducted from the taxable income by 5% of the actual amount. 11. According to the relevant provisions of the Notice of the Shanghai Municipal People's Government on Printing and Distributing the Revised Provisions of Shanghai Municipality on Promoting the Transformation of High-tech Achievements (Hu Fu Fa [2] No.55), the foreign-invested R&D institution will return the land use fee and land transfer fee of the project land within three years from the date of approval after being recognized by the Shanghai High-tech Achievements Transformation Service Center; Free of transaction fees and real estate registration fees for the acquisition of houses, and some real estate deed taxes can be returned as government subsidies; Exempt from water supply, drainage, gas capacity increase fees and power supply and distribution subsidy fees in the construction process. XII. These Measures and corresponding preferential policies are applicable to independent enterprises (companies) as legal persons and research and development departments established within foreign-invested enterprises.