Other Tax Preferences

1. For manufacturing foreign capital enterprises, house duty and vehicle & ship license tax shall be exempted for the first 10 years. For non-manufacturing foreign capital enterprises, house duty and vehicle & ship license tax shall be exempted for the first 3 years.

2. For foreign capital enterprises which make investment in compre he nsive development and utilization of agriculture, refined processing of subsidiary agricultural products, forstry development, resources development for comprehensive utilization, energy construction and energy saving, traffic infrastructure construction, technology upgrades of medium and large-sized state-owned enterprises, advanced technology, products export, municipal infrastructure construction, protection against environment pollution, ecological environment protection, tourism development, and senior or secondryvocational education projects, house duty and vehicle & ship license tax shall be exempted within the operation period.

3. For foreign capital enterprises that use waste mountains, wasteland, and waster river beach for agricultural technology development projects, agricultural tax shall be exempted for the first 5 years starting from the income-earning year.

4. For foreign capital enterprises that develop taxable agricultural specialties in waste mountains, land, was te river beach and waste water, agricultural tax shall be exempted for the first 3 years starting from the income-earning year.

5. If foreign-funded research and development center transfers technologies, business tax shall be exempted according to policies applicable to domestic science research institutions.

6. For foreign capital enterprises that need to shorten the depreciation period of fixed assets due to special reasons, fixed assets accelerated depreciation can be applied upon approval by state Revenue Bureau.

7. Foreign capital enterprises shall be exempted from city maintenance and construction tax.

8. Foreign capital enterprises shall be exempted from extra charges of education funds for the time being.

9. If foreign capital enterprises purchase home equipment, they shall be entitled to duty drawback preferential policy according to the Proposed Regulations on Tax Drawback Administration Regarding Foreign Capital Enterprises’ Purchase of Home Equipment.