1. Foreign-invested enterprises are exempt from the local income tax of 3%

2. Foreign-invested enterprises are exempt from the regulation tax for fixed assets investment.

3. Foreign investment encouraged by the State enjoy a 15% of income tax in the 3 years after profit making.

4. Foreign investment in manufacturing projects is exempt from income tax in the 2 years after profit making and enjoys 50% reduction of income tax for 3 years. Foreign investment in manufacturing projects encouraged by the State continues to be levied an income tax at a rate of 15% for another 3 years after the first 5 years preferential period.

5. Export-orientated foreign invested enterprises, after enjoying the normal exemption and reduction, enjoy 50% reduction of income tax in the year when their export value account for 70% of total production value.

6. Foreign investment with advanced technology, after enjoying the normal exemption and reduction, enjoy another 3 years 50% reduction of income tax.

7. Foreign investment in manufacturing projects in Hefei and Wuhu is levied a income tax at the rate of 24%; Foreign investment with hi-tech or export-orientated is exempt from land use fee for the first 5 years.

8. Foreign investment in Hefei High and New Technology Development Zone enjoys a preferential income tax at the rate of 15%.

9. Foreign investment in Hefei and Wuhu economic and technological development zones enjoys a preferential income tax at a rate of 15%.

10. Foreign investment in the projects of encouraged and restricted is exempt from customs duty and value added tax when importing equipment or introducing advanced and applicable technologies.

11. Foreign investment in industries of agriculture, forestry, energy and communications is exempt from real estate tax and vehicle license tax in the first 3 years after establishment.