Corporate income tax

A. The corporate tax of foreign-invested enterprises is calculated on the basis of the taxable income with the rate of 30%. The rate for productive foreign-invested enterprises is 24%.

B.? Productive foreign-invested enterprises with the operating period of more than 10 years enjoy a 2-year complete abatement of the corporate income tax beginning from the first profit-making year, and thena 3-year half abatement of ?the corporate income tax afterwards.

C. Foreign-invested export-oriented enterprises have the extended period of half-abatement of the corporate income tax in the years when their yearly export value reaches 70% of the yearly output value.

D.? Foreign-invested technologically-advanced enterprises have 3 additional years of half-abatement of the corporate income tax on the condition that they remain to be advanced technologically.

E. When foreign investors of foreign-invested enterprises reinvest their profits in foreign-invested enterprises with the operating period no less than 5 years, they can have 40% income tax drawback of their reinvested incomes with the approval of tax offices. And when reinvesting in export-oriented enterprises or technologically-advanced ones, they can have 100% drawback.

Local income tax

The local income tax of foreign-invested enterprises is calculated on the basis of the taxable income volumes with the rate of 3%. It is regulated by the People's Government of Dalian City that foreign-invested enterprises have a 7-year complete abatement of the local income tax beginning from the first profit-making year.

Import customs duty
A.? For the foreign-invested projects which are of the encouraged type described in 'The Guideline Catalogue of Foreign-invested Industries" and which also involve technology transfer, the imported equipments for self-use covered In the gross reinvestment volume are free of customs duties and import vat. (Excluding commodities feted in "Catalogue of Non-duty-free Import Goods in Foreign-Invested Projects")

B. Technology, fittings and spare parts imported with equipments according to contracts of the above projects are also free of customs duties and import vat.

Catalogue of Non-duty-free Import Goods in Foreign-Invested Projects

?? television set
?? video camera
?? television camera
?? VTR
?? stereo set
?? air-conditioner (excluding central air-conditioning)
?? refrigerator, freezer
?? washing machine
?? camera
?? duplicator
?? program-controlled telephone exchanger
?? microcomputer and periheral hardware
? ?telephone
?? wireless BP
?? the fax-machine
?? electronic computer
?? typewriter and word processor
?? automobile
?? motorcycle
?? others (excluding books, fittings and spare parts imported with project equipments)