■Foreign invested enterprises are exempted from local income tax (3%). ■The production enterprises with foreign investment that have an operation period exceeding 10 years shall, form the year they begin to make profit, be exempted from income tax for the first two years and allowed a 50% reduction for the following three years. ■The income tax on enterprises with foreign investment located in Anhui province that are engaged in projects encouraged by the state government shall be levied at a reduced rate of 15% for a period of three years following the expiration of regular tax preferential treatment. ■The production enterprises with foreign investment located in the urban areas of Hefei and Wuhu are entitled to a reduced income tax rate of 24%, as well as other tax preference stipulated by the state government. ■The income tax on enterprises with foreign investment located in Hefei High & New Technology Development Zone shall be levied at a reduced rate of 15% as from the date of their being identified as foreign invested enterprises that adopt high and new technology. ■The income tax on the production enterprises with foreign investment located in Hefei Economic and Technological Development Area or Wuhu Economic and Technological Development Area shall be levied at a reduced rate of 15%. ■Foreign invested enterprises producing for export (identified and reviewed by the Bureau of Commerce of Anhui Province) shall be allowed a reduced income rate of 50% as long as their annual export accounts for 70% or more of their turnout in addition to the tax exemption and tax reduction treatment stipulated by state taxation. ■Foreign invested enterprises that adopt advanced technology (identified and reviewed by the Bureau of Commerce of Anhui Province) shall be allowed a reduced income rate of 50% for three more years following the expiration of tax exemption and tax reduction treatment stipulated by state taxation. ■Equipment imported for foreign invested projects that are encouraged by the state according to catalogue for the Guidance of Foreign Investment Industries enjoy tariff and import-stage value-added tax exemption on the condition that the value of the imported equipment is no more than the total investment. ■Equipment and related technology, spare parts and accessories imported for technical innovation of the already established foreign invested enterprises that are engaged in the encouraged industries and projects, R & D centers with foreign investment, foreign invested enterprises that adopt advanced technology and foreign invested enterprises producing for export are exempted from tariff and import-stage value added tax on the condition that, within the approved business scope, the importing country couldn't produce the needed equipment or fail to meet the performance requirements. ■The domestically produced equipment purchased by foreign invested enterprises that are engaged in the encouraged industries and projects is entitled to a full refund of the value-added tax provided that the import tax on the imported equipment of the same kind is supposed to be exempted from. ■The domestically produced equipment purchased by foreign invested enterprises that are engaged in the encouraged industries and projects shall enjoy a 40% deduction of the total input from the increment of the income tax for the purchasing year over that for the year before after approved by the provincial tax authority. ■Additional preferential policies for foreign investment provided by various local authorities.