1. A foreign-invested production-type enterprise in the Pudong New Area shall pay business income tax at a rate of 15 percent.

2. A foreign-invested production-type enterprise in the Pudong New Area which has an operational period of 10 years or more shall be exempt from enterprise income tax for two years beginning from the first profit-making year, and then enjoy a 50 percent reduction from the third to the fifth year.

3. A foreign-invested "technologically advanced enterprise" in the Pudong New Area shall pay income tax at a rate of 10 percent for three years after the expiration of the prescribed tax exemption and reduction period. An export-oriented foreign-invested enterprise, whose export value makes up more than 70 percent of their output value in the year, shall enjoy a reduced enterprise income tax rate of 10 percent after expiration of the prescribed tax exemption and reduction period.

4. A foreign-invested enterprise related to port, energy and transportation projects in the Pudong New Area shall pay enterprise income tax at a rate of 15 percent. If the said enterprise has an operating term of 15 years or more, upon its application and approval from the taxation office, it shall be exempt from enterprise income tax for five years beginning from the first profit-making year, and then enjoy a 50 percent reduction from the sixth to the 10th year.

5. Whereas a foreign-invested enterprise builds or buys real estate for its own use within the Pudong New Area, it shall be exempt from the property tax for five years beginning from the month of completion or purchase.

6. Financial institutions including foreign banks or Sino-foreign joint ventures established in the Pudong New Area whose capital from the foreign investor or the operation fund of the branch allocated by the headquarters totals US$10 million or more and which have and operating term of 10 years or longer, upon approval, shall pay enterprise income tax at a reduced rate of 15 percent. Such banks shall be exempt from enterprise income tax in the first year of profit-making and then enjoy a 50 percent reduction for the following second and third years.