'2006 Jiaxing Xiuzhou Economic and Trade Fair

1. Investment costs
2. Transportation
3. Tax Details
4. Labor Information
5. Housing Information
6. Local banks
7. Major foreign-funded enterprises in Xiuzhou

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3. Tax Details

Corporate Income Tax	Regular	24	%
	Exemption years behavior after profit making	0	% - 1st year
		0	% - 2nd year
		12	% - 3rd year
		12	% - 4th year
		12	% - 5th year
		24	% - 6th year to 10th year
		24	% - 11th year to
Specific CI Tax regulations	Manufacturing businesses involving foreign investment in technology-intensive or knowledge-intensive projects or the ones of energy, communication and port construction with investment amount of over USD 30 million and long investment recovery period may pay corporate income tax at a reduced tax rate of 15% after the approval of State Administration of Taxation. Export companies at the expiration of specified tax exemption and reduction period may enjoy half exemption of corporate income tax provided that the export volume accounts for 70% of the total industrial output or above. Enterprises using advanced technology which are still technologically advanced at the expiration of specified tax exemption and reduction period are entitled to half exemption of corporate income tax for a 3-year extension.
Local Income Tax (Province)	Regular	2.4	%
	Exemption years	2
Regular value-added Tax (VAT)		17

VAT refund policy

Unless otherwise specified by the State Council, the policy of duty refund is applicable to goods for export. If the domestically made equipment purchased by foreign-invested enterprises within the total investment falls into the catalogue of duty-free equipment, the VAT for such domestically made equipment can be fully refunded.
VAT refund in per cent of payed VAT	76.5	%

Refund policy on reinvestments

When the foreign party of the foreign-invested enterprise uses its profit for reinvestment and to increase its registered capital or branches out for new businesses for at least 5 years, it can get back 40% of the income tax levied on the amount added. Total refund is applied to cases of direct investment for setting up or expanding export businesses or technologically advanced companies.

Other tax exemptions / incentives

In case foreign-funded enterprises that fall into the catalogue of 《 Industries Encouraged to Develop by Foreign-Funded Enterprises》 stipulated by the State Council purchase equipment in China and have business in electronics, information technology and other hi-tech industries with registered capital over 5 million USD, special local incentives can be offered.
1. Besides the national “two exemption, three half reduction” policy about income tax, a total refund of the locally retained tax can be offered from third to fifth year after the project is launched, and a 50% refund of the locally retained income tax can be offered from the 6th to the 10th year.
2.A 50% of the locally retained VAT can be refunded to the investor for two consecutive years in case the project is influential to the local industries.