Any enterprise with foreign investments of a production nature scheduled in operate for a period of not less than ten years shall, upon examination and verification by the tax authorities of an application filed by the enterprise, from the year beginning to make profit, be exempted from income tax in the first and second years and allowed a fifty percent reduction in the third to fifth years. However, the income tax on enterprises with foreign investments engaged in the exploitation of resources such as petroleum, natural gas, rare metals, and precious metals shall be regulated separately by the State Council. Enterprises with foreign investments which have actually operated for a period less than ten years, shall repay the amount of income tax exempted or reduced already.
( article 8, Income Tax Law Of The People's Republic Of China For Enterprises With Foreign Investments And Foreign Enterprises)

Any foreign investor of an enterprise with foreign investments which reinvests its share of profit obtained from the enterprise directly into that enterprise by increasing its registered capital, or by making the profit as capital investment to establish other enterprises with foreign investments to operate for a period of not less than five years shall, upon approval by the tax authorities of an application filed by the investor, be refunded forty percent of the income tax already paid on the reinvested amount. Where other preferential provisions are provided by the State Council, such provisions shall apply. If the investor withdraws its reinvestment before the expiration of five years, it shall repay the refunded tax. .
( article 10, Income Tax Law Of The People's Republic Of China For Enterprises With Foreign Investments And Foreign Enterprises

West Lake District supports and develops eight main kinds of industries especially, ie.: leisure and tourist industry, trade and business logistics industry, information service and software industry, intermediary service trade, service trade of the community, service trade of culture, real estate, economy of the building, financial services industry.
From January 2005, in 3 years, enterprise which belongs to the above mentioned eight trades, and has been introduced newly, and its local fiscal revenues in that year reach 500,000 RMB, will enjoy certain support fund in local fiscal revenues from local government. The concrete standard is: In the first year, return 40% of newly-increased district level financial tax incomes in this year made from enterprise to itself; In the second year, return 30% of newly-increased district level financial tax incomes in this year made from enterprise to itself; In the third year, return 20% of newly-increased district level financial tax incomes in this year made from enterprise to itself.
(File No. 8 of prefecture committee of West Lake district ---"Several Suggestions of Quickening the Development of Modern Service Industries ")