1. The newly established productive enterprise with foreign investment, if it has a managerial period of more than ten years, will enjoy 100% allowances for enterprise income tax in the first two years, and 50% allowances for enterprise income tax in the three years followed from the year it has made profits. And the rates for enterprise income tax are counted according to the related state and government regulations.

2. If the foreign investors of the foreign-invested enterprise use the profits earned to invest directly on the same enterprise as an increase to the registered capital or to establish new foreign-invested enterprises with a managerial period no less than five years, 40% of the total income taxation for the reinvested money will be returned under the approval of the local tax bureau after having received the application from the foreign investor. If the foreign investors of the foreign-invested enterprise use the profits earned to reinvest directly in China for the extension of export-oriented enterprises or enterprises based on advanced technology, in accordance with the relevant regulations, the whole amount of the enterprise income taxation for the reinvested money will be returned.

3. According to the government’s regulations, the foreign-invested enterprise can enjoy following benefits if it has applied to be confirmed as “export-oriented enterprise” or “enterprise based on advanced technology” and has been assessed as qualified :
1). After the state-granted period expired, during which it can enjoy reduction of or exemption from enterprise income tax, the export-oriented enterprise can enjoy 50% allowances for enterprise income tax on the present tax rate if that year’s amount of products exported occupies more than 70%of the total.
2) After the state-granted period expired, during which it can enjoy 50% allowances from enterprise income tax, enterprise based on advanced technology can enjoy another three years of the same benefit.
3) The mentioned two kinds of enterprises: export-oriented enterprise and enterprise based on advanced technology who has gained the right to use land by taking over or being allocated, can enjoy the preferential treatment of reduction of or exemption from the land using expenses after their registration of land using.
4) If the export-oriented enterprises make its export sales occupy more than ?% of the total sales, it can be exempted completely from the local income tax.

4. If the foreign investor of the foreign-invested enterprise remits the profit money earned overseas, his enterprise can be exempted from the pre-drawn income tax.

5. The Sino-foreign joint venture engaged in the construction of harbors and ports, if it has a managerial period of more than fifty years, it can enjoy 100% allowances for enterprise income tax in the first five years, and 50% allowances for enterprise income tax in the five years followed from the year it has made profits, on the condition that the application of the enterprise has been approved by the tax bureau on the local or the autonomous region or the municipal level.

6. As for those that directly engaged in the industry of planting, breeding aquatics or fishing can be exempted from the value added tax.

7. If the enterprises with a foreign-invested project confirmed as the kind of being encouraged or being restricted by the government import equipment for self-use, it can be exempted from duty and value added tax; if they purchase domestically produced equipment, the whole amount of the value added tax and ground enterprise income tax can be returned.

8. If a foreign-invested enterprise is confirmed as the kind of being encouraged or being restricted, as export-oriented enterprise or enterprise based on advanced technology or foreign-invested research and development center, it can import by their own money some equipments, spare parts, accessories with the exemption from the import duty and value added tax.

9. For better encouraging foreign-invested enterprises to earn more foreign currencies, the government will adopt a policy to encourage export.