Ningbo Daxie Development Zone enjoys the preferential policies applicable to the state-level economic and technological development zones.

Incentives on income tax:

1. Any enterprise with foreign investment scheduled to operate for a period of not less than ten years shall enjoy the preferential corporate income tax rate of 15%. And any enterprise with foreign investment with operational period 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.

2. Export-oriented enterprises invested in and operated by foreign businesses for which in any year the output value of all export products amounts to 70% or more of the output value of the products of the enterprise for that year may pay enterprise income tax at the tax rate specified in the Tax Law reduced by one half after the period of enterprise income tax exemptions or reductions has expired in accordance with the provisions of the Tax Law. However, export-oriented enterprises subject to enterprise income tax at the tax rate of 15% that qualify under the above-mentioned conditions shall pay enterprise income tax at the tax rate of 10%.

3. Advanced technology enterprises invested in and operated by foreign businesses which remain advanced technology enterprises after the period of enterprise income tax exemptions or reductions has expired in accordance with the provisions of the Tax Law may continue to pay for an additional three years enterprise income tax at the tax rate specified in the Tax Law reduced by one half. However, those enterprises subject to enterprise income tax at the tax rate of 15% that qualify under the above-mentioned conditions shall pay enterprise income tax at the tax rate of 10%.

4. Any foreign investor of an enterprise with foreign investment which reinvests its share of profit obtained from the enterprise directly into that enterprise by increasing its registered capital, or uses the profit as capital investment to establish other enterprises with foreign investment to operate for a period of not less than five years shall, upon approval by the tax authorities of an application filed by the investor, be refunded forty percent of the income tax already paid on the reinvested amount. And foreign investors re-invest directly in export-oriented or advanced technology enterprises with operational period not less than ten years, upon approval by the tax authorities of an application by the investor, be refunded all the income tax already paid on the reinvested amount.

Incentives on Customs duties and imported VAT

Any enterprises with foreign investment set up within China shall be exempt from customs duties and imported VAT on importing equipment from foreign countries on conditions that the projects fall into the encouraged category stipulated by <<Guiding Directory of foreign investment category>>. However, this policy is not applicable to those equipment items forbidden to be exempt from customs duties and imported VAT in accordance with stipulations of <<Equipment category that foreign invested enterprises shall not be exempt from customs duties and imported VAT >>