1. Corporate Income Tax(CIT)     (1) 15%of the net income derived from any foreign-funded manufacturing enterprise, if confirmed to be a Hi-Tech enterprise, shall be levied as corporate income tax in the Hi-Tech district. A newly established foreign-funded manufacturing enterprise, if scheduled to operate for a period of 10 years or more, shall be exempt from the corporate income tax in the first two profit-making years and allowed 50% reduction form the third to the fifth year.     (2) When the above period of tax exemption and reduction expires, the payment of corporate income tax at a reduced rate of 10% can be granted for another 3 years for certified technologically advanced enterprise.     (3) For the export-oriented enterprises, when the annual export value amounts to 70% or more of its turnover, the corporate income tax can be levied at a reduced rate of 10% in the same year.     (4) Any overseas investor who reinvests its share of profit in the same foreign-funded manufacturing enterprise or establishes a new foreign-funded manufacturing enterprise in the District for a period of not less than five years, upon approval by the tax authorities, may obtain a rebate of 40% of the corporate income tax based on the reinvested amount . If the share of profit is reinvested in an export-oriented foreign-funded manufacturing enterprise or a technologically advanced foreign-funded manu-facturing enterprise, as long as the period of operation is not less than 5 years, the entire amount of the corporate income tax paid on the reinvested portion shall be refunded.     (5) Any foreign-funded manufacturing enterprises, during the time when it is entitled to the reduced corporate income tax at the rate of 15% shall be exempt from local sub tax. Any manufacturing enterprise with overseas investment shall be exempt from local sub tax in the period of tax reduction and exemption.      2. Value-added Tax(VAT)     Any foreign-funded manufacturing enterprises shall be taxed at the rate of 17% if selling their goods in domestic market ; and shall be exempt from the value-added tax if exporting the products . Any software development enterprise shall be taxed at the rate of 3% if independently developing software products and integrate circuit products (including monocrystalline silicon less than 0.25μｍ).      3. Business Tax     The industries such as transportation, construction, telecommunication shall be taxed at the rate of 3% ; logistics , restaurant and hotels , intangible assets transfer , real estates sales shall be taxed at the rate of 5% and night clubs , golf , karaoke , bowling and computer games shall be taxed at the rate of 20%.      4. Customs Duties     The imported equipment for any project , if encouraged by the State , shall be exempt from Customs duties and VAT. Generally , overseas investors are entitled to the rebate of part of the value-added tax upon approval if they purchase equipment in domestic marker . Any imported material or semi-finished article , as long as used for export purpose , can be exempt from Customs duties and VAT .      5. Real Estates Tax     The self-owned properties shall be taxed at the annual rate of 1.2% base on 70% of the original price. The leased properties shall be taxed at 12%of annual rent.      6. Land Use Tax     RMB 1.00 Yuan/square meter shall be levied each year . However, any enterprise with overseas investment in the Hi-Tech district is entitled to ten-year exemption form the date of obtaining the land use right.      7. Land Deed Tax     Any enterprise who purchases industrial land with land use right , shall be taxed at the rate of 4% based on the evaluation price ; anyone who purchases commercial building , luxury apartment , villa , holiday house shall be taxed at the rate of 4% of the transaction price while those who purchase ordinary apartment shall be taxed at the rate of 2% .      8. Stamp Duty     This tax is levied on the following transactions , i.e. purchase and sales , process , contract , property lease , goods transportation , warehouse storage , loan , property insurance , technology contract , property ownership transfer document, business account book , royalties and permits . The maximum rate of Stamp Duty is 1‰ and the minimum rate is 0.05‰ . Revenue stamp shall be affixed to each of permits and business account books , RMB 5.00 Yuan each .      9. Vehicles and Vessel License Plate Tax     This tax is levied on all the vehicles specified in the relevant regulations . Passenger vehicles : RMB 180-300 Yuan per year , cargo vehicle : RMB 60 Yuan/Ton per year. 10. Foreign enterprises can enjoy other preferential policies granted by the Administrative Committee of CND upon approval.

THE ADMINISTRATIVE COMMITTEE OF CHANGZHOU NATIONAL HI-TECT DISTRICT ADD:NO.8 HENGSHAN ROAD,CHANGZHOU,CHINA POSTCODE:213022 TEL:(86-519)5108227 5127129 5127093 FAX:(86-519)5127710 WEBSITE:WWW.CZXD.GOV.CN