（Approved by the State Council on September 7， 1990 and promulgated by the Ministry of Finance on September 11， 1990）
时效性：失效　 颁布日期：19900911 　实施日期：19901001 　失效日期：19940401 　颁布单位：财政部

Article 1 These Provisions are formulated in order to assist Shanghai Pudong New Zone （hereinafter referred to as “Pudong New Zone”） in expanding foreign economic cooperation and technological exchange， absorbing foreign capital， introducing advanced technology， and speeding up development and construction.

Article 2 Production-oriented enterprises organized as Chinese-foreign equity joint ventures， Chinese-foreign contractual joint ventures and foreign-capital enterprises established in Pudong New Zone shall be subject to enterprise income tax at the reduced tax rate of 15% on income derived from production and business operations and on other income. Upon the filing of an application with and approval of the tax authorities， an exemption from income tax in the first and second years， commencing the first profit-making year， and a 50% reduction of income tax from the third through the fifth years shall be granted to those enterprises scheduled to operate for a period of 10 years or more.

Article 3 After the period of enterprise income tax reduction and exemption has expired in accordance with the provisions of the State， export-oriented enterprises may， for any year in which the output value of the export products of the enterprise amounts to 70% or more of the output value of the products of the enterprise for that year， pay enterprise income tax at a reduced tax rate of 10%. After the period of enterprise income tax reduction and exemption has expired in accordance with the provisions of the State， the payment of enterprise income tax at a rate reduced by one half maybe extended for a period of 3 years for advanced technology enterprises.

Article 4 Enterprises with foreign investment that are engaged in the operation of such energy resources and communications construction projects as airport， harbour， railway， highway， and power station， shall be subject to enterprise income tax at a reduced tax rate of 15%. Upon the filing of an application with and approval of the tax authorities， an exemption from income tax from the first through fifth years， commencing the first profit-making year， and a 50% reduction of income tax from the sixth through the tenth years shall be granted to those enterprises scheduled to operate for a period of 15 years or more.

Article 5 Enterprises with foreign investment， that are engaged in infrastructure construction connected with certain projects on tracts of land， upon approval by the tax authorities of an application filed by the enterprise， shall be given preferential treatment in taxation， in accordance with Article 2 of these Provisions concerning production-oriented enterprises.

Article 6 With respect to foreign financial institutions such as foreign capital banks， branch offices of foreign banks， banks with Chinese-foreign joint capital， and finance companies that are scheduled to operate for a period of 10 years or more， if the paid-in capital of foreign investors or the capital granted by the head office to the branch office for business operations exceeds 10 million U.S. dollars， upon approval by the tax authorities of an application， the enterprise income tax shall be levied on income derived from business operations at a reduced tax rate of 15%， and shall subject to an exemption in the first year， commencing the first profit-making year， and a 50% reduction in the second and third years.

Article 7 Foreign financial institutions such as foreign capital banks， branch offices of foreign banks， banks with Chinese-foreign joint capital， and finance companies shall be subject to consolidated industrial and commercial tax at a tax rate of 3% on their income derived from loan transactions， and a tax rate of 5% on their income derived from other financial transactions.

Article 8 A foreign investor that reinvests its share of profit obtained from an enterprise in the same enterprise or in other enterprises with foreign investment， or uses the aforesaid share of profit for setting up a new enterprise with foreign investment， where the period of operation is not less than 5 years， shall be refunded 40% of the amount of income tax paid on the reinvested portion； if the reinvested amount is used to set up export-oriented enterprises or advanced technology enterprises， where the period of operation is not less than 5 years， the entire amount of income tax paid on the reinvested portion shall be refunded.

Article 9 Where a foreign investor to a Chinese-foreign equity joint venture remits its share of profit out of China， the amount remitted shall be exempt from income tax.

Article 10 Foreign investors having no establishments in China but receiving dividends， interest， rentals， royalties， and other income from sources in the Pudong New Zone shall be subject to income tax at a reduced tax rate of 10%， with the exception of those that are exempt from income tax in accordance with the law. Where investors which provide funds or equipment on preferential terms， or transfer advanced technology， and need to be granted more preferential treatment in the form of income tax reduction or exemption， the case shall be decided by the Shanghai Municipal People's Government.

Article 11 Export products manufactured by enterprises with foreign investment， with the exception of crude oil， refined oil and the products otherwise specified by the State， shall be exempt from consolidated industrial and commercial tax.

Article 12 Building materials， production and management equipment and spare parts， means of transport， office supplies required for own use， as well as raw materials and auxiliary materials required for production， imported by enterprises with foreign investment， shall be exempt from consolidated industrial and commercial tax.

Where enterprises with foreign investment use the tax-free imported raw materials， spare parts， components and packaging materials for processing products， which are then sold on the domestic market， consolidated industrial and commercial tax shall be made up on the imported materials and components used for processing of such products.

Article 13 Reasonable quantities of settling-in articles and means of transport personally brought in by foreign personnel who are working or reside in enterprises located in Pudong New Zone， shall be exempt from consolidated industrial and commercial tax.

Article 14 The Shanghai Municipal People's Government shall decide whether or not the preferential treatment shall be granted to enterprises with foreign investment in respect of local income tax imposed on them， or in respect of reale state tax imposed on the new houses which have been built or bought by them for their own use.

Article 15 For enterprises established or projects launched with investment by companies， enterprises and other economic organizations as well as individuals from Hong Kong， Macao and Taiwan， matters shall be handled by taking reference to these Provisions.

Article 16 The State Taxation Bureau shall be responsible for interpreting these Provisions.

Article 17 These Provisions shall go into effect as of October 1， 1990.