1. Foreign-invested enterprises and research centers involving in projects encouraged by the state, those listed in the ?Restricted Foreign-investment Index B? and projects engaged in technology transfer, shall be exempt from the import duty and import regulatory tax for equipment imported for their own use and included in the project's total investment, except the goods listed in the ?Index of Imported Goods by Foreign-invested Projects with No Tax Exemption.?
2. For the technical transformation projects of foreign-invested enterprises in the incentive category and in ?Restricted Foreign-investment Index B,? foreign-invested research and development centers, foreign-invested enterprises with advanced technology and export-oriented foreign-invested enterprises, the imports of self-use equipment and supportive technologies, components and spare parts that cannot be produced in China or that, though can be produced in China, fall short of performance requirements, shall be exempt from import duty and the import regulatory tax, as long as they are within the originally approved business scope.
3. Foreign-invested enterprises in the incentive category and in ?Restricted Foreign-investment Index B? that purchase domestically made, tax-free equipment within the investment amount shall be refunded the full amount of value-added tax imposed on the said equipment and be offset the business income tax.
4. For projects of using foreign investment in the Middle and Western Areas (Jiangxi), the imported self-use equipment and supportive technologies, components and spare parts that cannot be produced in China or that, though can be produced in China, fall short of performance requirements, within the project's total investment, shall be exempt from import duty and the import regulatory tax.
5. Foreign-invested enterprises that import advanced technologies on the state's ?Index of High-tech Products,? shall be exempt from import duty and the import regulatory tax charged on the payment for imported software from overseas as prescribed in the contract.
6. Foreign-invested high-tech enterprises established in the Nanchang High-tech Industrial Development Zone shall enjoy a 15 percent discount of income tax.
7. Manufacturing foreign-invested enterprises with an operation plan of more than 10 years in the province shall, beginning from the year of profit-making, be exempted from the enterprise income tax for two years and pay the business income tax with a 50 percent reduction from the third to fifth year.
8. Foreign-invested enterprises in the incentive category, after the expiration of the current preferential taxation period, shall enjoy a 15 percent reduction of enterprise income tax.
9. Upon expiration of the enterprise income tax exemption and reduction period, a foreign-invested technologically advanced enterprise shall continue to enjoy a 50 percent reduction of enterprise income tax for three more years. After expiration of the prescribed tax exemption and reduction period, an export-oriented foreign-invested enterprise whose export value makes up 70 percent or more of its output value in a year, shall continue to enjoy a 50 percent reduction of enterprise income tax. The tax rate should be 10 percent if the reduced tax rate is lower than 10 percent.
10. Foreign-invested technology-intensive and knowledge-intensive projects, projects of US$30 million or more with a long-term investment recovery, and projects involving energy, transportation and environment protection, shall enjoy a 15 percent discount of enterprise income tax.
11. Upon expiration of prescribed enterprise income tax exemption and reduction, foreign-invested enterprises engaged in agriculture, forestry and animal husbandry or located in the economically underdeveloped remote areas, upon the approval of their application by the state taxation administration, shall continue to pay enterprise income tax with a reduced rate of 15-30 percent for 10 more years.
12. If foreign investors directly reinvest the profits generated from their enterprises in the province in setting up or expanding export-oriented enterprises or technologically advanced enterprises, and with an operation term of no less than five years, all the business income tax paid for the portion of the reinvestment shall be refunded upon the application made by the enterprises and approval of the taxation office concerned.
13. If the foreign party of a foreign-invested enterprise reinvests its profits in the enterprise to increase the registered capital or use them as capital to open another enterprise with an operation term of no less than five years, 40 percent of the business income tax paid for the portion of the reinvestment shall be refunded upon the application made by the enterprise and approval of the taxation office concerned.
14. If a foreign-invested enterprise?s expenses on developing new technologies increase 10 percent or more over the previous year, with approval of the taxation office concerned, the enterprise may be allowed to use 50 percent of the actual expenses to offset its income tax payable in the year.
15. For foreign-invested enterprises, foreign-invested research and development centers, foreign companies and foreign individuals, their income from technological transfers, technological development business and related technical consulting and supporting services are exempt from business tax.
16. Where enterprise income tax is exempted or reduced according to the tax law and its implementation regulations, local income tax is exempt and reduced at the same margin.
17. Foreign-invested technologically advanced enterprises with an operation period of at least 10 years are, from the first profits-making year, exempt from local income tax for the first five years and enjoy a 50 percent reduction from the sixth to 10th year.
18. A foreign-invested export-oriented enterprise whose exports make up more than 70 percent of the enterprise's total output value of the year, shall be exempt from local income tax.
19. Foreign-invested enterprises engaged in energy, transportation, port construction and technological development with more than 10 years of operation term, shall, beginning from the profit-making year, be exempt from local income tax for the first five years and enjoy a 50 percent reduction from the sixth to 10th year.
20. Foreign-invested enterprises engaged in agriculture, forestry, animal husbandry, water conservancy and farming produce processing with an operation term of more than 10 years, shall, from the profit-making year, be exempt from local income tax for the first five years and enjoy a 50 percent reduction from the sixth to 10th year; and those with 15 years of operation term shall be exempt from local income tax for the first five years from the profit-making year and then enjoy a 50 percent reduction from the sixth to 15th year.
21. Foreign investors are encouraged to set up or run high-tech joint ventures through buying shares with such factors as technology, scientific achievements, marketing and management. Such shares of a foreign investor can reach 35 percent. If the parties of the joint venture have other agreement, the agreement applies.
22. A foreign-invested enterprise which intends to purchase a local business or invest in a new business in Jiangxi shall get the approval if the foreign investment makes up 25 percent or more of that business's registered capital. The purchased or newly invested business can be registered as a foreign-invested enterprise and shall enjoy corresponding policies.
23. The maximum term of land use and business management for a foreign-invested enterprise: 40 year for commercial, tourism and entertainment projects; 50 years for industrial projects or education, scientific research, culture, public health, sports and agricultural development projects; and 70 years for housing projects.
