Enterprise Income Tax
Enterprise income tax shall be levied on foreign investment enterprises at the r ate of 30%. The manufacturing enterprises operated in our district with an opera tion period of 10 years or longer shall be exempted from income tax in the first and second profit-making years and allowed a 50% reduction in the following thi rd to fifth profit-making years. After the expiration of exemption and reduction a 15% to 50% income tax shall be levied on the enterprises approved by tax aut horities in the following ten years as stipulated.

Enjoying preferentrial treatment of coastal open cities, a 24% income tax shall be levied on manufacturing foreign investment enterprises operated in longyan Ci ty, Chengguang Towns of other six counties and 18 key industrial satellite towns of Longyan Prefecture.

A 15% income tax shall be levied on foreign investment enterprises which operate in the fields of energy, transportation, intensive knowledge and technology, re sources to be processed deeply and more than US«Ã3000 foreign investment capital.

A 50% reduction of income tax according to present tax rate shall be levied on e xport enterprises operated by foreign investment if output value of fexport prod ucts is more than 70% of the products' output value in the same year after the e xpiration of exemption and reduction in accordance with tax laws and regulations .

A 50% reduction of income tax shall be levied for three years on advanced techni cal enterprises operatedby foreign investment if the standard of manufacturing t echnique reaches to the standard of the same enterprises in Fujian province and still is chosen as advanced technical enterprises after the expiration of exempt ion and reduction in accordance with tax laws and regulations.

Enterprise income tax of partial reinvestment levied shall be refunded entirely to foreign investors of foreign investment enterprises if the directly reinvest profits made by the enterprises to operate and extend ¡®Two Types of Enterprises ¡¯.

Local Income Tax
Local income tax shall be calculated in accordance with the amount of tax levied at the rate of 3%. Foreign investment enterprise operated in our district shall be exempled form local income tax in the five yeats at the beginning of busines s. Twotypes of enterprises operated in our district shall be exempted from local income tax temporarily.

Value fAdded Tax
A value added tax shall be paid for selling goods, offering process, repair and labour or importing goods within China. The value added tax is divided into two basic rates of 17% and 13%. The tax shall be levied at a rate of 6% for selling goods or offering labour by a small-scale taxpayer (standard as stipulated by th e Finance Ministry of the State). Export cargoes are exempted from the tax.

consumer Tax
A Consumer tax shall be levied on 11 kinds of products for producing, processing and importing cigarettes, wines & alcohole, cosmetics, cream & shampoo, preciou s jewellery, pearls & hardstones, firecrakers & fireworks, automobile rubber tyr es, motorcycles, cars etc.. The tax is divided into 14 different rates (values) and shall be levied by two ways of making rate by price and making value by quan tity.

Business Tax
A business tax shall be levied on a taxpayer according to his turnover or sale v alue in his business activities, projects' rates are stipulated by the province, of which: 3% of communication & transportation, building post & telecommunicati ons, and culture & sports, 5% of finance & insurance, service, invisible assets transfered and sale fixed assets, 5%-20% of entertainment. The business activiti es which are better benefits, lower profits and in need of aids by the state are exempted from the tax.

The excess on an added tax after being paid for value added tax, consumer tax an d business tax, approved by a Tax Authority through enterprises' application wit hin approved business duration (same as non-duration enterprises) less than fiv e years, shall be refunded to foreign investment enterprises which had been appr oved to be established before Dec. 31,1993.