1) Business income tax for high-tech enterprise
For any high-tech enterprise in the high-tech industrial zone approved by the State Council, the business income tax shall be levied at the reduced rate of 15%; for any newly-established high-tech enterprise, the business income tax may be exempted for two years from the year put into operation.

It refers to:
a) Any enterprise in the high-tech industrial development zone approved by the State Council, upon the appraisal of new and high-tech enterprise by competent authority, the business income tax may be levied at the reduced rate of 15%;

b) Any high-tech enterprise newly-established in the high-tech industrial development zone approved by the State Council, upon the appraisal of Provincial Science and Technology Department and upon the approval by the tax authorities ,may enjoy the rate of 15% business income tax ,and the exemption of two years from the year of the appraisal and the business income tax may be levied at the rate of 33%,upon the expiration of the appraisal certification ,if the new appraisal certification is obtained .

2) Business income tax for foreign-invested enterprise and foreign-owned enterprise
A.) For any foreign-invested enterprise approved as new-and high-tech enterprise and established in the High-Tech Zone approved by the State Council, the business income tax shall be levied at the reduced rate of 15%.

B) For any foreign-invested production enterprise with an operation period more than 10 years, the business income tax shall be levied for the first and second year from the year the enterprise makes profit and the business income tax shall be reduced by half from the third to the fifth year.

C) For any export-oriented enterprise with foreign investment, upon the expiration of the business income tax exemption and reduction period as stipulated by Taxation Law, the business income tax may be reduced by half at the rate stipulated by Taxation Law, if more than 70%of total output of the current year is exported in the same year. For any new and high-tech enterprise, the business income tax can be levied by a reduced rate of 10%.

D) For any technologically-advanced enterprise with foreign investment, upon the expiration of the business income tax exemption and reduction period as stipulated by Taxation Law, the business income tax may be reduced by half for another three years at the rate stipulated by Taxation Law, if it remains a technologically advanced enterprise.

E)Any foreign investor of an enterprise with foreign investment which reinvests its share of profit obtained from the enterprise directly into the enterprise by increasing its capital or using the profit as capital investment to establish other enterprises with foreign investment to operate for a period of not less than five years shall, upon approval by the tax authorities of application filed by the investor be refunded forty percent of the income tax already paid on the reinvested amount according to the above-mentioned items, and a foreign investor, who makes direct reinvestment in establishing or expanding an export-oriented enterprise or a technologically advanced enterprise in China, upon the relevant stipulation of the State Council’s approval by the tax authorities may get a full refund of enterprise income tax paid on the reinvested amount.

3) Preferential financial policies by Baoding High-Tech Zone
A). Any enterprise attested as software enterprise from 2000 to 2010, its general taxpayer of value added tax who sells the computer software products developed and produced independently by himself, right after paying tax at the legal rate of 17%, may enjoy the policy that of the part of the actual value-added tax exceeding 3% may be refunded immediately after payment.

B) During the year 2000 and the end of year 2010, any general taxpayer of value added tax who sells the IC products (including monocrystalline silicon) developed and produced independently by himself, right after paying tax at the legal rate of 17%, may enjoy the policy that of the part of the actual value-added tax exceeding 6% may be refunded immediately after payment,.

C) The part of the actual value-added tax levied on high-tech, state-level and province–level new products retained by district governmental finance authority may be refunded for one ,two or three years to the enterprise after payment .