What preferential policies does a foreign
investor enjoy when making investment in central or
western regions?
A:Enterprises
with foreign investment enjoy following preferential
policies:
1. Manufacturing enterprises with foreign
investment, whose operation period is over ten
years, enjoy an exemption of enterprise income tax
for the first two years starting from profit year,
and a reduction of 50% the enterprise income tax
from the third year to the fifth year (hereinafter
referred to as "Two Exemption, Three
Half").
2. When the period of "Two Exemption, Three
Half" expires, if the foreign invested
enterprise still recognized as advanced technology
enterprise, it can enjoy a reduction of 50%
enterprise income tax, i.e. at rate of 15% for three
more years in accordance with the provision of the
tax law. 3. When the period mentioned above expired,
the tax reductive period could still extend for
another three years.
