-- Any enterprise with foreign investment of a production nature scheduled to operate for a period of not less than ten years shall, from the year beginning to make profit, be exempted from income tax in the first and second years and allowed a fifty percent reduction in the third to fifth years. These enterprises shall also be exempted from local income tax, which is 3% of the taxable income for seven years.

-- For those enterprises that export their products, after the above favorable treatment period expires, the rate of corporate income tax shall be 12% if 70% or more of their total product value in the year are exported, and this rate is 10% for enterprises in the Pilot Zones.

-- Technically advanced enterprises can enjoy three more years of favorable corporate income tax rate of 12% after the above tax benefits period expires, and for the enterprises operating in the Pilot Zones can enjoy an even more favorable rate of 10%.

-- Foreign investors who reinvest their profits/dividends from their enterprises in China for a period of or over 5 years can be refunded 40% of the tax they have paid for the reinvested amount. For reinvestment that is injected into an export-oriented enterprise or enterprise with advanced technology, all the income tax that is already paid on the reinvested part will be refunded.

-- Equipment imported by overseas-funded projects for their own use is exempt from customs duties and import linkage value added taxes, provided these projects are listed in the "Catalogue for the Guidance of Foreign Investment Industries" as projects being encouraged, except those listed in the "Catalogue of Commodities Imported by Overseas-funded Projects which Shall Not Be Entitled to Any Tax Exemption".

-- If manufacturing enterprises with foreign investment can meet the following requirements, they are allowed to be engaged in purchase and export of the commodities which are not controlled with quota, permit or exclusive rights, and may participate in the export quota bidding for their self-manufactured products.

1. Foreign-funded manufacturing enterprises with an annual export volume of over 10 million US Dollars.
2. No record of violation of laws or regulations concerning taxation, foreign currency and import and export for two consecutive years before applications.
3. With professionals in international trade.Foreign investors working in the joint venture companies will be exempted from personal income tax for the dividend and bonus they get from their joint venture companies.

-- For those overseas students pioneering in Dalian, if they are using high and new technology achievements for production, their salaries earned in Dalian will be regarded as income outside China and they can enjoy preferential personal income tax policies.

-- Children of those foreign staffs working in the joint venture companies shall enjoy preferential tuition fees; graduation certificate will be issued after they have finished all the courses and passed the exams.

-- Relaxing entry requirements for qualified personnel employed by foreign invested enterprises; Lifting residence registration restrictions for technical staffs and senior management personnel needed by foreign invested enterprises.