Preferential Policies in Nanjing, Jiangsu

1.	The enterprise income tax is levied at a reduced rate of 15% for following enterprises.
	(1)	Enterprises with foreign investment set up in Nanjing High and New Technology Development Zone(including 5 square kilometers in Jiangning Economic and Technological Development Zone)and identified as a high-tech enterprise;
	(2)	Productive enterprises with foreign investment set up in Nanjing Economic and Technological Development Zone;
	(3)	Technology intensive and intelligence intensive projects; projects with foreign investment over USD 30 million and with long investment recovery period; construction projects for energy, transportation and harbor.
2.	The enterprise income tax for productive enterprises with foreign investment set up in urban area of Nanjing is levied at a reduced rate of 24%.
3.	The enterprise income tax due from productive enterprises with foreign investment with an operation term of 10 years or over is exempted for the first and second year, and levied at half rate for the third to the fifth year starting from the first profiting year.
4.	The enterprise income tax due from Sino-foreign joint venture enterprises engaged in harbor and dock construction with an operation term of 15 years or over is exempted for the first to fifth year, and levied at half rate for the sixth to the tenth year starting from the first profiting year.
5.	For banking institutions with sole foreign investment or Sino-foreign joint venture banks, the enterprise income tax due from those with foreign investment or operation capital allocated from head office to the branch exceeding USD 10 million, and with operation term of 10 years or over is exempted for the first year and levied at half rate for the second to third year starting from the first profiting year.
6.	For product export enterprises run with foreign investment, after expiration of terms for enterprise income tax exemption and reduction according to taxation law, the enterprise income tax for those with export product output value in current year over 70% of the enterprise product output value during that year can be levied at half of the rate specified in the taxation law.
7.	For enterprises with advanced technologies run with foreign investment, after expiration of terms for enterprise income tax exemption and reduction according to taxation law, the enterprise income tax for those remaining to be enterprises with advanced technologies can be levied at half of the rate specified in the taxation law for three more years.
8.	In case foreign investors of enterprises with foreign investment directly invest the profits obtained from enterprises into the enterprise again as additional registered capital, or as capital investment to set up other enterprises with foreign investment with an operation period no less than 5 years, 40% of the enterprise income tax paid for the reinvested portion will be rebated; In case foreign investors make direct reinvestment to set up and expand product export enterprises or enterprises with advanced technology, with an operation period no less than 5 years, all enterprise income tax already paid for the portion of reinvestment will be rebated.
9.	Starting from Jan.1, 2000, for any enterprises with foreign investment with technological development expense growing by 10% or more over the previous year, subject to approval by the taxation authority, it is permissible to offset the income tax payable during the current year with 50% of the actually incurred amount of technological development expense.
10.	For any enterprise with foreign investment established in China that purchases equipment made in China within the total amount of investment, if the investment project falls into encouraged category in Guidance catalogue of industries for foreign investment as specified in the Notice of State Council on adjusting taxation policy on imported equipment, except commodities included in Catalogue of imported commodities with no tax exemption for enterprises with foreign investment, 40% of the investment for purchasing equipment made in China can be off set from the increased amount of enterprise income tax paid in the current year of purchasing the equipment over the previous year.