【正文】 of which the production EFIs scheduled for an operating period no less than 10 years shall, from the year it begins to make profit, be exempted from Ine Tax for the first and second years and allowed a 50% reduction of Ine Tax for the third to the fifth years.Tax incentives already implemented in the region where the national tourist holiday resort area is located shall be continued in the national tourist holiday resort area.(GUO SHUI FA NO. 248 [1992])5. Provincial Capital and Coastal Openup CitiesIne Tax shall be levied at the reduced rate of 10% on ine from dividends, interest, rentals, royalties and other sources in the said city areas obtained by foreign investors who have no establishment in China, except where tax exemption are carried out according to tax laws. The People’s Municipal Government shall make decisions on more favorable tax exemption and reduction for foreign investors who provide capital or equipment on terms preferential to China or whose transferred knowhow is advanced.
(GUO SHUI FA NO. 218 [1992])6. Suzhou Industrial Parka. According to the provisions in ‘Reply to the Relevant Questions About Development and Construction of Suzhou Industrial Park’ (Document No. 9 [1994]) made by the State Council (hereinafter referred to as ‘Reply’), EFIs engaged in construction projects for infrastructure facilities regarding munication and energy resources such as the construction of ports, docks, railways, highways and power stations shall enjoy a reduced ine tax rate of 15% according to Section 1 of Article 7, the Tax Law. The enterprise ine tax shall be levied at the reduced rate of 15% on EFIs who are engaged in the above projects and who operate outside the Suzhou Industrial Park but still in Suzhou city, provided the said EFIs conform to the provisions in Item 1 of Section 1 in Article 73, the Detailed Rules and at the same time get the approval from the State Administration of Taxation.b. On the basis of the existing tax incentives policies of the State, Chineseforeign equity joint ventures engaged in construction of ports and docks in Suzhou city shall enjoy exemption from Enterprise Ine Tax for 5 years from the first profit making year and a 50% reduction of the Enterprise Ine Tax for the following 5 years according to Item 1 of Section 1 in Article 75, the Detailed Rules. The EFIs engaged in construction projects regarding munication, energy resources and infrastructure such as railways, highways, power stations and the accessory facilities in Suzhou Industrial Park shall enjoy a fixed term tax exemption and reduction of Ine Tax according to Section 1 of Article 8, the Tax Law. However, for the very large scale and special projects which need more tax incentives, the relevant enterprise may file a report to the petent taxation authorities for approval according to the provisions in Article 3 of the Reply.c. ChineseSingapore Equity Development Company responsible for the development and construction of Suzhou Industrial Park and mainly engaged in the construction of infrastructure and public facilities in the Park may enjoy tax incentives applying to the production EFIs established in Economic and Technological Development Zones.(GUO SHUI HAN FA NO. 128 [1995]7. Bonded AreasThe Enterprise Ine Tax shall be levied at the reduced rate of 15% for production EFIs engaged in processing products for export in the bonded areas.(GUO SHUI HAN FA NO. 1123 [1991])① To those production EFIs in Zhangjiagang Bonded Area (ZBA) who process products for export purposes, the reduced rate of 15% shall be applicable.No local ine tax shall be levied on EFIs located in ZBA.② Any production EFIs in ZBA scheduled for an operating period no less than 10 years shall, from the year it begins to make profit, be exempted from Ine Tax for the first and second years and allowed a 50% reduction of Ine Tax for the third to the fifth years. In addition, the exportoriented EFI shall, after its expiration of exemption and reduction period, be entitled to a more preferential ine tax rate of 10%, provided that at least 70% of its annual products have been exported. And those 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 reduced rate of 10% on Enterprise Ine Tax for three years, provided that they remain technologically advanced enterprises.③ Ine Tax shall be levied at the reduced rate of 10% on ine from dividends, interest, rentals, royalties and other sources in the said city areas obtained by foreign investors who have no establishment in China, except where tax exemption are carried out according to tax laws. The People’s Government of Jiangsu Province shall make decisions on more favorable tax exemption and reduction for foreign investors who provide capital or equipment on terms preferential to China or whose transferred knowhow is advanced.④ Foreign 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 rebated 40% of Ine Tax already paid on the reinvestment amount. Furthermore, if the said profits are reinvested in order to establish or expand exportoriented enterprises and hightech enterprises, all the paid tax for the said profits shall be refunded.(SU SHUI WAI FA NO. 020 [1993])8. Kunshan Economic and Technology Development Zone (KETDZ)Any EFI established in Kunshan Economic and Technology Development Zone shall be levied at the。 or if he fails to be recognized as technologically advanced enterprises within the said three years.(Section 3 of Article 81, the Detailed Rules)3. Other regulations concerning tax refund