Foreign-funded enterprises engaged in productive operations with an operational period more than ten years shall be exempt from the business income tax for the first two profit-making years, followed by a 50 percent reduction of the said tax from the third through the fifth profit-making year.

Foreign-funded enterprises engaged in agriculture, forestry, and animal husbandry and those established in areas outside Lanzhou proper may continue to enjoy a 15-30 percent reduced tax rate for another ten years after expiration of the business income tax exemption and reduction period, subject to approval.

Export-oriented enterprises whose output value of export products in a year amounts to 70 percent or more of the total output value of all products for the same year shall be entitled to a 50 percent reduction of the business income tax after expiration of tax exemption and reduction as stipulated by the state. Those enterprises which have been accorded the status of technologically advanced enterprises shall enjoy a 50 percent reduction of the business income tax for another three years upon expiration of the said tax exemption and reduction period.

Foreign-funded enterprises established in the Ningwozhuang Hi-Tech Industrial Development Zone which have been identified according to state regulations as hi-tech Sino-foreign joint ventures with an operational period of more than ten years shall be exempt from the business income tax for the first two profit-making years upon approval of the application of these enterprises by the taxation authority. Proper considerations of tax reduction for a certain period may be given to those who have difficulties in paying tax after expiration of the said tax exemption period, subject to approval.

Overseas investors who reinvest in China their share of profits derived from their enterprises for a period of no less than five years shall be entitled to, upon approval, a refund of 40 percent of the income tax already paid on their reinvested portion. In case that the reinvestment is made for the establishment and expansion of export-oriented enterprises or technologically advanced enterprises whose operational period is no less than five years, the investors shall be entitled to a 100 percent refund of the income tax already paid on their reinvested portion.

Foreign investors shall be free to remit abroad the profits derived from their enterprises. No remittance tax shall be levied.

Foreign enterprises established in Lanzhou proper and in the development zone to engage in productive operations and enterprises engaged in the industries particularly encouraged by Gansu Province shall be entitled to a 24 percent reduction of the business income tax. In case that the amount already paid is higher than 76 percent, they may receive a refund of the portion higher than 76 percent from the local institution of finance. Foreign-funded enterprises of knowledge-intensive category, foreign enterprises engaged in productive operations with an investment more than US$10 million, or those in the fields of transportation and energy sources may enjoy a 15 percent reduction of the business income tax. In case that the amount already paid is higher than 85 percent, they shall get a refund of the portion higher than 85 percent from the local institution of finance at the corresponding level.

Foreign-funded enterprises with investment more than US$500,000 and an operational period more than ten years, foreign-funded enterprises engaged in the fields Gansu particularly encourages, or enterprises in the field of the catering industry established in the urban areas and the development zone of Lanzhou shall be entitled to a refund of the 3 percent local income tax already paid from the local institution of finance.

Foreign-funded enterprises shall pay tax for their motor vehicles and license plates and then are entitled to a full amount refund (motor vehicles for transport operations are excluded).

Foreign-funded enterprises are free from food animal slaughter tax.

Preferential treatment in the use of land

1. Foreign-funded enterprises developing barren mountains and wasteland into new development zones and mainly engaging in industrial operations shall be entitled to a 15 percent reduction of the fees for the transfer of the land-use right.

2. Foreign-funded enterprises developing barren mountains, wasteland and water surfaces into agricultural, forestry, and livestock breeding projects may enjoy a 50 percent reduction of the fees for the transfer of the land-use right.

3. Sino-foreign cooperative enterprises engaged in transformation project with the Chinese side?s investment in the form of offering the land-use right at a fixed price may enjoy a 15 percent reduction of the fees for the transfer of the land-use right.

4. Foreign-funded enterprises engaged in projects especially encouraged by Gansu Province or in productive operations in the development zones shall be entitled to a 20 percent reduction of the fees for the transfer for the land-use right or a cession of the land upon approval from the provincial government.

5. Foreign-funded enterprises established on barren mountains and waste riverbanks unsuitable for farming shall be free from the fees for the transfer of the land-use right.

6. Foreign-funded enterprises obtaining the land-use right in the form of land-use right transfer, those engaged in projects which are especially encouraged by Gansu Province, and those established in the development zones shall be free from fees for the right of land use.

7. Foreign-funded enterprises shall be free from the land-use fees during the period of basic facility construction (two years). Those with a operational period of more than ten years and an investment between US$500,000-1 million may enjoy a five-year exemption of the land-use fee, those with an investment between US$1-3 million, a seven-year exemption of the land-use fees, those with an investment between US$3-5 million, a ten-year exemption, and those whose investment mounting to more than US$5 million, a 15-year exemption.

Other preferential treatments and rewards

Foreign-funded enterprises shall be entitled to an inland transport allowance of 0.05 yuan for every U.S dollar they earn in export of their products from the local institution of finance at the corresponding level.

Foreign-funded enterprises belonging to the categories whose investment is encouraged according to state industrial policies may enjoy a one-year reduction of the fees for the electricity-consumption right. The ratio of reduction shall be equal to the ratio of the investment received.

Foreign-funded enterprises shall be entitled to an accelerated depreciation of their fixed assets upon approval.

Compatriots from Hong Kong, Macao, and Taiwan and overseas Chinese who make a lump-sum investment of more than US$100,000 in the province may choose one family of their relatives or friends in rural Gansu to apply for the change of their domicile to urban areas.

Intermediary organizations and individuals who have introduced overseas businessmen to invest in Gansu shall be rewarded.

The board, lodging, and medical costs of foreign personnel in foreign-funded enterprises traveling on official business in Gansu and their family dependants accompanying them shall be handled in the way same to Chinese staff.

Foreign-funded enterprises shall be entitled to the right to decide the mode of management of their enterprises, recruit and dismiss their employees, and fix the price of their products.