Preferential Policies for High and New Technology Enterprises:

The high and new technology enterprises designated by the Commission of Science and Technology of Tongzhou, Beijing shall enjoy preferential policies of the State and Beijing.

Preferential Policies for Enterprises with Foreign Investment:

Relevant articles stipulated in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises as following:

(1) Any enterprise with a production nature scheduled to operate for a period of not less than ten years shall pay taxes at the rate of 24%, and shall, from the year beginning to make profit, be exempted from income tax in the first and second years and allowed a 50% reduction in the third to fifth years.

(2) Any high and new technology enterprise (shall obtain the Certificate of High and New Technology Enterprise) with a production nature scheduled to operate for a period of not less than ten years shall, from the year beginning to make profit, be exempted from income tax in the first and second years and allowed a 50% reduction in the third to fifth years. For the taxation paid in a 50% reduction, the enterprise shall apply for refund and then be fully refunded upon approval of district financial department. After the period for the exemption and reduction of enterprise income tax ends, the enterprise recognized as the Advanced Technology Corporation shall continue to be allowed a 50% reduction in enterprise income tax for 3 more years. For the tax rate less than 10% after 50% reduction, the enterprise shall be levied at the rate of 10%.

(3) Enterprise income tax rate shall be reduced to 15% for technology-intensive and knowledge-intensive projects or productive projects with over US$30 million foreign investment and long investment recovery period.

(4) Enterprises titled Advanced Technology Corporation shall, after the period for the exemption and reduction of enterprise income tax ends, continue to be allowed a 50% reduction in enterprise income tax for 3 more years provided that it is designated to be the Advanced Technology Corporation again.

(5) The export-oriented enterprises shall, after the period for the exemption and reduction of enterprise income tax ends, continue to be allowed a 50% reduction in enterprise income tax for 3 more years provided that 70% of total output value of the enterprise is exported annually. The export-oriented enterprise paying income taxes at the rate of 15% shall be levied at the rate of 10% provided that it meets the above-mentioned criteria.

(6) Any foreign investor of an enterprise with foreign investment who reinvests its share of profit obtained from the enterprise directly into that enterprise or uses the profit to establish other enterprises to operate for a period of not less than five years shall be refunded 40% of the income tax already paid on the reinvested amount. If the investment mentioned above is made by the export-oriented or advanced technology enterprise scheduled to operate for a period of not less than ten years, it shall be fully refunded of the income tax already paid on the reinvested amount.

(7) Any foreign-invested enterprise with a production nature shall be exempted from the land use fee during the contracted construction preparation period. The export-oriented enterprises and advanced technology enterprises shall be exempted from the land use fee.

(8) The land within the development zone shall be granted in compliance with relevant laws and regulations of the state and Beijing. The State-Owned Land-Use Rights Certificate shall be offered to the enterprise located in the development zone.