【文章內(nèi)容簡介】 ilways, highways, and power stations.d. Any EFI of the service sector situated in Special Economic Zones, with its total foreign investment amounting to $5 million or more, and with its operation period exceeding 10 years shall, upon its application having been endorsed by the petent tax authorities, be granted ine tax exemption for the first profitmaking year, tagged along with 50% tax reduction for the second and third year.e. Foreign banks, ForeignChinese Joint Invested Banks and other financial institutions located in Special Economic Zones or other places approved by the State Council shall, upon the application having been endorsed by the petent tax authorities, be exempted from ine tax for the first profitmaking year adjoining another two years of 50% tax reduction, provided that the capital granted by foreign investors or operation funds acquired from the headquarters of foreign banks is no less than $10 million, and that those financial institutions shall conduct business in China for no less than ten years.f. Any Chineseforeign equity joint venture recognized as new and hightechnology enterprise and established in new and hightechnology industrial development zones approved by the State Council, with its operation period exceeding 10 years shall, upon its application having been endorsed by the petent tax authorities, be eligible for exemption from Enterprise Ine Tax for the first and second profitmaking years. To those EFIs located in the Special Economic Zones and in the Economic Technology Development Zones, the appropriate tax incentives of those zones shall remain applicable. g. Any exportoriented EFI shall, after its expiration of exemption or reduction stated in the Tax Law, be entitled to a further 50% reduction on Enterprise Ine Tax at a rate specified in the Tax Law, provided that at least 70% of its annual products have been exported. In addition, for those exportoriented EFIs which are situated in the Special Economic Zones, the Economic Technological Development Zones or which have already enjoyed 15% rate and exported 70% of its annual products or more, the Enterprise Ine Tax rate shall be further reduced from 15% to 10%.h. Technological advanced enterprises with foreign investment may, upon the expiration of the Enterprise Ine Tax exemption and reduction period as stipulated by the Tax Law, enjoy a further 50% reduction in Enterprise Ine Tax for three years based on the rate stipulated by the Tax Law, provided that they remain technologically advanced enterprises.i. Other regulations relating to the exemption and reduction of enterprise ine tax having been promulgated, or having been approved for promulgation by the State Council.In applying for Enterprise Ine Tax exemption or reduction pursuant to the provisions of Item 6, and Item 7, and Item 8 of this Article, any EFI shall submit the relevant certifying documents issued by the petent departments to the local tax authorities for examination and confirmation.(Article 75, the Detailed Rules)III. Tax refund on reinvestmentForeign investors of any EFI who reinvest directly in the same EFI with his (her) share of profits so as to increase registered capital, or use his share of profits as capital investment to set up other EFIs whose operation period is no less than 5 years shall, upon the investors’ application having been approved by the relevant petent tax authorities, be refunded 40% of Ine Tax already paid on the reinvestment amount. However, other preferential tax regulations shall be applicable if there exist such regulations issued by the State Council. Furthermore, a foreign investor is bound to repay his (her) refunded tax if he (she) withdraws investment before the expiration of a period of 5 years.(Article 10, the Tax Law)1. Prerequisite and qualification for rebate on reinvestmentThe expression of ‘reinvest directly’ mentioned in Article 10, the Tax Law, means that foreign investors of any EFI increase their proportion of registered capital with their share of profits derived from the same EFI or use those profits as capital to set up new EFIs.In assessing the refundable tax amount in accordance with the provisions of Article 10 of the Tax Law, the said foreign investor shall provide supporting documents certifying the attributable year in which the profits were reinvested。 where no supporting documents can be provided, the local tax authorities shall determine the year using appropriate methods.Foreign investors shall, within one year from the date the funds are actually invested, apply to the original tax collecting authorities for tax refund and submit a document certifying the amount and duration of the added or new capital investment.(Article 80, the Detailed Rules)The ‘period of operation’ in Article 10 of the Tax Law shall be counted according to the following principals: the period of operation shall be counted from the date when the reinvestment funds are actually invested, if foreign investors in any EFI directly reinvest the profits allocated from that EFI into the same enterprise or other EFIs who have already started production or operations (including trial production, trial operation)。 however, the period of operation shall be counted from the date when the new enterprise starts production or operation ( including trial production or operation), if the foreign investors reinvest in establishing new EFIs.(GUO SHUI FA NO. 009 [1993])Regarding reinvesting in China with the profits obtained from his EFI, a foreign investor must first use the said profits to make up his insufficient legal capital, if such is the case。 therefore, only the rest of that profit in the form of reinvestment shall be eligible for tax refund according to relevant regulations.(GUO SHUI HAN FA NO. 304 [1990])Any foreign investor in EFIs shall not enjoy such incentives as tax refund if the profits with which he reinvests are derived from liquidation.(GUO SHUI FA NO. 009