1. Foreign Investment and Income Tax of Foreign-invested Enterprise
The state stipulates that income tax of foreign-invested enterprises should be calculated with taxable income, and the tax rate is 30%. Productive foreign-invested enterprises established in Ningbo City should pay the income tax as per the tax rate of 24%, (for projects in Ningbo Economic and Technological Development Area, or on energy, transportation, port, wharf, or any project encouraged by the state, or foreign investment of over USD 30,000,000 with a long return period, the taxes should paid as per the rate of 15%). If the operation period is over ten years, within the 1st year and 2nd year after making profits, enterprise income tax is exempted, and within the 3rd to 5th year, the enterprise income tax should be paid in half.

For foreign-invested enterprises in agriculture, forestry, and animal husbandry, besides the above-stated tax-free and tax reduction treatments, if the enterprise applies and the tax administrative department of the State Council approves, 15% to 30% of the enterprise income tax could be abated as per the taxable income in the following ten years. For export enterprises, when the tax abatement period expires, if the export production value of the current year is over 70% of all production value, the enterprise income tax should be paid at the rate of 12% (Ningbo Economic and Technological Development Area, CITIC Trust & Investment (Enterprises at Ningbo) Daxie Development Area, Ningbo Free Trade Area, and Ningbo Science Park should pay the income tax at the rate of 10%). For advanced technology enterprises, when the abatement period expires, enterprise income tax could be paid at the rate of 12% in the following three years (enterprises in Ningbo Economic and Technological Development area could pay the income tax at the rate of 10% in the following three years).

2. Tax Reimbursement for Reinvestment
If foreign investors reinvest with the enterprise profits and the reinvestment period is no less than five years, 40% of the paid tax of the reinvestment amount should be reimbursed after approved by the tax department. If reinvesting in export enterprise or advanced technology enterprise, the paid tax of the reinvestment amount should be reimbursed completely.

Besides enjoying the national preferential policies, foreign businessmen investing in Ningbo with project total investment of over USD 10,000,000, hi-tech project, project in Ningbo Economic and Technological Development Area and project within provincial development area, project rebuilding old enterprises and the capital increase project, agriculture development, export agriculture (including agriculture, forestry, husbandry, fishing and processing industry), and infrastructure projects should enjoy special preferential policies in land price and enterprise facilities and so on.

3. Withholding Income Tax
For foreign businessmen that do not establish organizations but have dividend, interest, rent, chartered right charge, and other earnings from Ningbo, except abating income taxes according to relevant laws and regulations, the income tax should be paid at the rate of 10%. If the conditions providing capital and equipment are preferential, or the transferred technology is advanced, the income tax should be reduced or abated after approved.

4. Income Tax on Profit Earnings Remitted Abroad
When foreign investors remit the enterprise profits abroad, the income tax on profit earnings remitted abroad should be abated.

5. Custom Duties
For the foreign-invested projects satisfying Catalogue for the Guidance of Foreign Investment Industries (April 1, 2002), self-using equipment within total investment other than listed in Catalogue of Non-tax-free Import Product of Foreign Investment Projects, the custom duties and import value-added taxes should be abated.

6. Preferential Polices in Ningbo Economic and Technological Development Area
For hi-tech projects recognized by the administrative committee of the development area as electrics, biochemistry, precision machining and so on, those with export of over USD 30,000,000, huge sum of foreign investment, and projects of great significance on Beilun District, besides all preferential policies that the central government granted state level development areas, the administrative committee of Ningbo Development Area has established enterprise development fund and hi-tech development fund to provide policy supports in project construction, land use, infrastructure, technology introduction, equipment reconstruction, foreign trade and talent recruitment, etc.

Land: Industrial land of "Eight Available and One Leveling" (available land, power, steam, communications, cable television, water supply and drainage, and pollution charge, and leveled land) with 50 years of use right is transferred at the price of RMB 50,000/mu for land use certificate, without any other additional charge.

Income Tax: Income tax rate of foreign-invested enterprises is 15%, and the state has granted state level development areas with "two abatement and three halve" policy, that is, if the foreign-invested productive enterprise has an operation period of over 10 years, the income tax should be abated in the 1st and 2nd year after making profits, and in the 3rd to 5th year, the income tax should be paid in half.

Fund Support: For high-tech enterprises identified by the administrative committee of the development area, Beilun District will supply some allowances or supports in research and technology reconstruction from the Hi-tech Development Fund.

Charge other than taxes: The development area will be managed according to relevant laws and regulations, and charges other than taxes should be greatly reduced and indiscriminate charges should be stopped and we will make our effort to build a non-charge area.

Capital Construction Allowance: During construction period of the enterprise, electricity charges to the power supply department should be fully compensated by the administrative committee of the development area.