1. Foreign-invested enterprises in manufacturing projects are exempt from income tax for the first two years beginning from the first profit-making year and enjoying 50 percent reduction of income tax for the following three years.

2. For foreign-invested enterprises listed in the state-encouraged index, their import of facilities and technologies, introduction of advanced and appropriate technologies are exempt from tariff and import value-added tax.

3. Foreign-invested enterprises are exempt from regulatory tax on fixed assets.

4. Foreign-invested enterprises in agriculture, forestry, energy and communication are exempt from real estate tax and vehicle license tax in the first three years beginning from the day of establishment.

5. Foreign-invested enterprises in manufacturing projects in Hefei and Wuhu cities are levied an income tax at the rate of 24 percent. Those confirmed hi-tech or export-orientated foreign-invested enterprises are exempt from land-use fee for the first five years.

6. Foreign-invested enterprises in Hefei High and New Technology Development Zone enjoy a preferential income tax rate of 15 percent after they are confirmed to be the above-mentioned enterprises.

7. Foreign-invested enterprises in Wuhu Economic and Technological Development Zone enjoy a preferential income tax rate of 15 percent.

8. Charge of land-use fee (per square meter annually): land used for service industries including commerce, tourism, finance and entertainment: 3-45 yuan; land used for industy, storage, communication, construction, real estate: 1-10 yuan; land used for education, scientific research, health and sanitation and non-commercial housing projects: 0.5-10 yuan; land used for agriculture, forestry, animal husbandry, fishery: one to three percent of their annual operating income; foreign-invested enterprises within the construction period as contracted are charged 20 percent of the approved land-use fee. Enterprises invested by overseas Chinese and compatriots from Taiwan enjoy 20-30 percent reduction of land-use fee by providing the certificates issued by the local Taiwan Affairs Office or the Overseas Chinese Affairs Office and with the approval of the local financial departments. Export-orientated enterprises and those of advanced technologies can enjoy 10-30 percent reduction of land-use fee within a certain period upon approval of relevant departments.

* Anhui provincial government and local governments at various levels will strictly implement preferential policies on taxation stipulated by the state. In order to encourage direct foreign investment, Anhui will give various preferential policies to foreign-invested projects of large scale, hi-tech or influential industries within the limits of local governments? authority, such as return of income tax, reduction or postpone of payment of land-use fee, and cost reduction of investment and production.