Investment Policy

1. The income tax shall be levied at a reduced rate of 15% on foreign-invested manufacturing enterprises. If its running period is over 10 years, the income tax is exempted in the initial two profit making years and allowed a half reduction in the following three years

2. Export-oriented enterprises with foreign investment shall pay their income tax at a reduced rate of 10% upon expiration of tax exemption and reduction period. The income tax of Technology advanced enterprises shall be levied at 10% for another 3 years after the period of tax exemption and reduction.

3. The profits, which are obtained from foreign-invested enterprises and reinvested in China with a business term if no less than 5 years, can be refunded with the collected income tax of the reinvested proportion, after examination and approval from tax authorities.

4 .Imported productive equipment for company’s own use, which is in line with the categories of encouragement of the State Industrial Catalog Guiding for Foreign Investment and is within the total investment, is exempted from the tariff and import-related VAT .

5. The remittance to foreign countries of divided profits, which are obtained from enterprises, will be exempted from the remitting tax.

6. As for the essential projects that do significant contribution to the development of XETZ, the preferential policies would be discussed further.