1. The enterprise income tax Foreign merchants invested enterprises will pay the enterprise income tax according to regulations as provided in "Foreign Merchants Invested Enterprises and Foreign Enterprises Income Tax Law by People's Republic of China. Production-oriented foreign merchants invested enterprises in TEDA will pay the enterprise income tax at the tax rate of 15% after deduction. Production-oriented foreign merchants invested enterprises in TEDA whose period of business exceeds 10 years will be exempted the enterprise income tax for the 1st and 2nd year since the year of profit, from 3rd to 5th year be levied the enterprise income tax by 50% deduction ( at the tax rate of 7.5% ). Among them those who used to be advanced technology enterprises are still advanced technology enterprises, after the period of exemption and deduction of the enterprise income tax expire according to the regulation by the State, they will be given an extended 3 years of 50% deduction of the enterprise income tax ( at the tax rate of 7.5% ); those enterprises who are product export-oriented, after the period of exemption and deduction of the enterprise income tax expire according to the regulation by the State, they will be levied the enterprise income tax by deduction at the tax rate of 10% if the output value of export products in that year amounts to 70% or higher of the gross output value of the enterprise. Production-oriented foreign merchants invested enterprises in TEDA will be exempted local income tax. Foreign merchants who invest in transport infrastructure projects and municipal public facilities projects will pay the enterprise income tax at the tax rate of 15% if approved by taxation department; and if approved by financial department, will be returned business tax with the whole sum during the investment recovery. Those enterprises whose period of business exceeds 15 years, if approved by financial department, will be returned the enterprise income tax with the whole sum for the first 5 years since the year of profit and be returned 50% of the enterprise income for the second 5 years. Enterprises of commercial, restaurant, recreation and tourism which are invested by foreign merchants, if examined and approved by TEDA Bureau of Finance and Bureau of Land Tax, will be returned the enterprise income tax they have paid for 3 years since the day of business.

2. Check and transfer for yearly loss If foreign merchants invested enterprises in TEDA incur yearly loss, the loss can be made up for by the income of the next tax-paying year; if the income of the next tax-paying year can not sufficiently make up for the loss, it can be extended year by year and be made up for, but it should not go beyond 5 years.

3. Draw the income tax in advance foreign investors who do not set up agencies in China and have such resources as TEDA interest, rental, privileged operation cost and other income, will be levied the income tax by deduction at the tax rate of 10% except that some items are exempted income tax according to law. Among which those who provide capital and equipment or transfer advanced know-how with favorable conditions, if approved, can be given preferentially more exemption and deduction of tax. Profit, dividend and bonus earned by foreign investors from foreign merchants' investment, whether be posted outside China, are exempted the income tax.

4. Return of tax for reinvestment If investors for abroad, HongKong, Macao and Taiwan use the profit they have earned in TEDA enterprises to invest in the same enterprises or new enterprises whose period of business exceeds 5 years will be returned the 40% of the income tax they have paid for the reinvestment if approved by taxation department. If the enterprises to be reinvested are of product export-oriented or of advanced technology and whose period of business exceeds 5 years will be returned the whole sum of the income tax they have paid for the reinvestment if approved by taxation department.