Whilst the Zone s port facilities are very effective, efforts are being made to upgrade road and rail links to the rest of the Tumen Region. The Rajin-Sonbong Zone offers a number of tax incentives. Foreign companies can benefit from a simple and advantageous tax system unmatched by neighbouring countries. Foreign managers and technical specialists must pay personal income tax on their earnings if they are resident in the Zone for more than one year. Interest from savings deposits in banks registered in the Zone is not taxable.
Foreign enterprises are subject to a range of sales or turnover taxes.
The cost of renting property and land in the Rajin-Sonbong Zone is less than half that of coastal and Southern China. It is not possible for foreigners or joint ventures to own land in the Rajin-Sonbong Zone. Instead, land is leased from the state for up to fifty years. Total payment is normally due within ninety days of conclusion of the contract, but enterprises engaged in priority investments can pay the lease in instalments over five years. There are no extra social costs involved when employing workers, although profitable firms should pay a year-end bonus to each worker.