To accelerate the development of the Mohan International Port City, special investment incentives have been formulated for the China-Laos Mohan-Boten Economic Cooperation Zone (referred to as the "Mohan-Boten Cooperation Zone" thereinafter):
Industrial Policies
1. Trade preferences and investment services
Products produced in the Mohan-Boten Cooperation Zone may receive corresponding tariff preferences based on the rules of origin. Enterprises that register and establish regional headquarters or research and development centers in Kunming or Mohan will not only benefit from industrial support policies in Kunming or Mohan, but can also enter into a three-party investment service guarantee agreement with the Mohan-Boten Cooperation Zone Administration and the Boten Economic Special Zone Administration to coordinate and safeguard their interests, specifically in production, taxation, and investment security, among others.
2. Support for major industrial investment projects
Major industrialization projects aligned with the leading industries of the Mohan-Boten Cooperation Zone and with an annual fixed asset investment of over 50 million yuan($6.8 million) will receive a subsidy of 6 percent of the actual annual industrial fixed asset investment (excluding land fees), or 15 percent of the equipment purchase fixed asset investment, with a maximum subsidy of 5 million yuan per project.
3. Financial support for headquarters establishment
Newly designated headquarters that enterprises register in the Mohan-Boten Cooperation Zone from outside the city, with a paid-up registered capital of over 5 million yuan, will receive financial support of 1 million yuan for direct-designated headquarters, and 2 million yuan for functional headquarters, as well as innovative headquarters with a paid-up registered capital of over 10 million yuan. For comprehensive (regional) headquarters with a paid-up registered capital of over 25 million yuan, financial support of 5 million yuan will be provided. Headquarters for enterprises that invest in and build headquarters in the Mohan-Boten Cooperation Zone and include them in fixed asset investment statistics will receive a financial support of 0.2 percent of the actual investment, with a maximum support of 5 million yuan.
4. Support in the Development of Cross-Border E-commerce and Comprehensive Foreign Trade Services.
5. Support in the building of overseas warehouses
Registered enterprises in the Mohan-Boten Cooperation Zone that build overseas warehouses will receive financial support.
6. Increased support for new and increased foreign investment projects
New or increased investment projects in the Mohan-Boten Cooperation Zone that actually utilize foreign investment of $3 million or more in a year will receive financial support based on 2 percent of the actual foreign investment amount for the year. For manufacturing projects, financial support totaling 3 percent is provided based on the actual foreign investment amount for the year.
7. Support for cross-border logistics system development
Newly registered enterprises in the Mohan-Boten Cooperation Zone that build cross-border logistics hub projects with public attributes, such as border warehouses, transit warehouses, sorting warehouses, and cold chain warehouses, within the Mohan Cross-Border Logistics Park will receive one-time financial support of 5 percent of the project's total investment (excluding land fees), with a maximum support of 5 million yuan.
8. Increased subsidies for import and export logistics costs
International multimodal transport and export-oriented manufacturing enterprises registered in the Mohan-Boten Cooperation Zone that conduct interregional cargo consolidation and groupage, with annual revenues reaching 100 million, 300 million, and 500 million yuan, will receive one-time financial support of 500,000, 1 million, and 2 million yuan, respectively, for their import and export logistics costs.
9. Support for border trade
Encouraging border residents to establish professional cooperatives for border trade, and providing financial support to cooperatives with annual import and export trade exceeding 500 million yuan. Providing financial support to enterprises involved in border trade that processes imported goods.
10. Financial support for travel agencies bringing tourists to Mohan
Providing financial support of 10 yuan for every tourist visiting Mohan to Kunming travel agencies that bring in more than 500 tourists to Mohan within the year. Encouraging enterprises to register travel agencies or branches in Mohan, supporting travel agencies in conducting cross-border tourism and border tourism businesses.
Taxation Policies
11. Enjoying income tax benefits as enterprise engaged in western development
From January 1, 2021, to December 31, 2030, enterprises in the Mohan-Boten Cooperation Zone whose main business is in industries specified in the "Encouraged Industries Catalog for Western Regions" and where more than 60 percent of their total revenue comes from their main business operations, will be subject to a reduced corporate income tax rate of 15 percent.
12. Local sharing of enterprise income tax for new businesses
New businesses located in the Mohan-Boten Cooperation Zone, excluding industries prohibited or restricted by the state, are eligible for the tax benefit of the local sharing of enterprise income tax. This means, starting from the year in which the first income from production and operation is obtained, these businesses are exempt from taxation for the first five years and subject to a halved tax rate for the subsequent five years.
