Parent Category: Business FAQs
Enterprises with foreign investment enjoy following preferential policies:
- Manufacturing enterprises with foreign investment, whose operation period is over ten years, enjoy an exemption of enterprise income tax for the first two years starting from profit year, and a reduction of 50% the enterprise income tax from the third year to the fifth year (hereinafter referred to as "Two Exemption, Three Half").
- When the period of "Two Exemption, Three Half" expires, if the foreign invested enterprise still recognized as advanced technology enterprise, it can enjoy a reduction of 50% enterprise income tax, i.e. at rate of 15% for three more years in accordance with the provision of the tax law. 3. When the period mentioned above expired, the tax reductive period could still extend for another three years.