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1. Foreign-funded enterprises concerned with energy, communication, water conservancy, environmental protection, agriculture, forestry, animal husbandry and other related industries with terms of operation longer than 10 years will be exempt from corporate tax for 2 years starting from the first profit-making year. These enterprises will receive a full tax rebate from local financial departments for the third, fourth and fifth years of operation.

2. Foreign-funded enterprises approved as high-tech enterprises with terms of operation longer than 10 years will be exempt from corporate tax from the first to second profit-making year. They will receive a full corporate tax rebate from local financial departments from the third to seventh year of operation. For the first three years of operation, the proportion of VAT designated to the local financial departments will be rebated by these departments. Upon expiry of the above-mentioned preferential terms, favorable tax rates may still be obtained for enterprises which fulfill requirements of provincial tax departments.

3. Foreign-funded enterprises involved in energy, communication, environmental protection and urban public utilities whose actual investment exceeds US$10 million will have the proportion of their VAT designated for the local financial departments rebated for the first 3 years of operation upon approval.

4. For foreign-funded enterprises reinvesting their profits in the province and their term of operation longer than 5 years, local financial departments will rebate corporate tax according to the amount reinvested.

5. Foreign funded enterprises engaged in agricultural projects by using non-cultivated land will be exempt from agriculture tax for the first three years. In the 4th and 5th years, the above taxes paid will be rebated by local financial departments.

6. Foreign-funded enterprises will be given priority in the allocation of land-use rights. Allocation of these rights will be at the same price level for all enterprises (domestic or foreign). Arrangements can be made to pay by installments if necessary. When foreign-funded enterprises invest in residential houses, they may sell 30 percent of the floor area at commercial housing price.

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