Corporate Income Tax
According to the State’s regulation, the tax rate of corporate income tax of foreign-investment enterprises is 30%, which is calculated by taxable income; the tax rate of local income tax is 3%, which is calculated by taxable income. Altogether the tax rate is 33%. Productive foreign-investment enterprises that set up in the region under the jurisdiction of Anshan Municipality pay corporate income tax at a rate of 24% (while the corporate income tax rate is 15% for enterprises set up in Anshan New and Hi-tech Industrial Development Zone). Enterprise whose operation period lasts 10 years+ is exempted from corporate income tax for the first two years since it starts to generate profits. From the 3rd to the 5th year, the corporate income tax is 50% of the stipulated amount. When the reduction and exemption period expires, export-oriented enterprise pays corporate income tax by half of the tax rate stipulated in Taxation Law if the export products’ value is 70%+ of the total products in that year. For technically advanced enterprises, when the reduction and exemption period expires, they pay corporate income tax by half of the tax rate stipulated in Taxation Law for three more years.

Tax Refund for Reinvestment
Foreign investors who reinvest their profits in China and operate 5 years+ can get 40% refund from the paid tax of the reinvestment when verified by the taxation authorities. All paid income tax of the reinvestment will be refunded if the reinvestment is made in export-oriented enterprises or technically advanced enterprises.

Preferential Policies towards the Specific Activities
I. Deduction of technology development cost
When the actually spent technology development expenses of a foreign-investment enterprise increases 10%+ within a taxation year comparing with the same period of the year before, 50% of the actually spent technology development expenses can be deducted from the taxable income tax in the same year.
II. Deduction and exemption of corporate income tax for purchasing domestic equipments
Within the total investment amount, 40% of the investment for purchasing domestic equipments can be deducted and exempted from newly increased corporate income tax in the year that the equipment purchase takes place comparing with the year before. However, the deduction and exemption last no more than 5 years.

Customs duties
When a foreign-investment project belongs to projects encouraged by <Catalogue for the Guidance of Foreign Investment Industries>, the imported equipments for the project and its auxiliary parts within the total investment amount will be exempted from customs duties and import related tax, except those listed in <Catalogue of Non-duty-free Imported Commodities of Foreign-investment Projects>.