According to the relative stipulations by State and provincial government, the foreign-funded enterprises enjoy taxes preference including Value-added tax, Consumption tax and income tax.

    Value-added tax, Consumption tax. The export shipment of foreign-funded enterprises is exempted from Value-added tax. For those import & export enterprises, value-added tax and consumption tax may be exempted from their re-exportation products and relative processing fees. 

    Income tax. Production enterprises with foreign investment enjoy the enterprise income tax at a rate of 24% according to state regulations. Those with an operation period above ten years shall be free to pay the enterprise income tax for the first two profit-making years, and half of the enterprise income tax can be exempted for the following three years. After the expiration of tax-free or half-tax period, the foreign funded export-oriented enterprise whose export amounts reach 70% of total annual value of production of the same year, may pay half of enterprise income tax according to taxation policy. During the above-mentioned period, local income tax can be exempted. 

    Income tax rate of the following three types of production foreign funded enterprise is 15%.
(1)Projects of Technology-intensive and Knowledge-intensive enterprise.
(2)Projects with foreign investment above US$30,000,000 and with long withdrawal period.
(3)Projects with foreign investment engaged in energy resource , transportation and port construction.

    Any foreign investors, who re-invest with the profits obtained from their enterprises to increase the registered capital or to establish new foreign investment enterprises with an operation period above five years, may be refunded 40% of the paid enterprise income tax. Foreign investors, if they invest theirs profits in export oriented enterprises or high-tech enterprises, may be refunded all the enterprise income tax paid on the reinvest portion.