Encouragement given to foreign-invested enterprises to implement technological development and innovation as well as to enlarge the purchase of homemade equipment

·Foreign-invested enterprises and research centers will be exempt from import tariff and linking tax of self-application equipment, supporting technology, capital, auxiliaries, replacement parts within the total amount of investment

·The increment value tax of homemade equipment will be fully returned and the income tax of the enterprise will correspondingly cancelled according to relevant regulations provided that the homemade equipment purchased by foreign-invested enterprises are within the total investment amount and are listed in the tax-free directory

·The income of technological transfer of foreign-invested enterprises will be exempt from transaction tax

·The income tax of foreign-invested enterprise will be offset according to 50% of the real amount of technological development that is over 10% higher than last year

  Encouragement given to invest in the mid and west of China

·Imported self-application equipment and supporting technology, auxiliaries, replacement parts that belongs to encouraging projects will be exempt from import tariff and linking tax.

·The mid and west region of China can enlarge the scope of absorbing foreign investment, relax restrictions of the terms of foreign investment and increase the stock-holding proportion of foreign businessman in foreign invested enterprises.

· The income tax of an foreign-invested enterprise can be still reduced by 15% after three-year period of beneficial taxation provided it is listed in the state encouraging projects and located in the mid and west region.

·Foreign-funded enterprises in which foreign fund accounts for over 25% can enjoy the treatment of foreign-invested company for reinvesting projects.

·The provinces, autonomous regions and municipalities in the mid and west of China can choose an already established development zone to apply for the economic development zone of state level.

·The industry scope of absorbing foreign funds in the mid and west will be enlarged on the basis of the directory of state encouraging industry.

Improvement of the management and service of foreign-invested enterprises 

·Foreign-invested enterprises that live up to certain terms can be listed in the exchange market of A stock and B stock

·The operation scope of investing agency established by multinational corporations can be enlarged

·The procedures for examination and approval of establishing foreign- invested enterprises will be simplified, namely, all the foreign- invested enterprises not involved in the projects of comprehensive encouragement will be examined and approved by provincial government

·The value appraisal of imported equipment in foreign-invested enterprises will be cancelled

·The policies, regulations and rules against the absorption of foreign investment will be eliminated or adjusted