The preferential policies hereunder are made out based on relevant national, provincial, Hechi municipal and county government' s regulations for the following purposes: to strengthen investment promotion of the county, to encourage both domestic and overseas investors to invest in the county, to stimulate building companies with local capitals and to promote economic growth of the county.

Article 1 All investors in the county can enjoy more local preferential policies apart from relevant favorable national and provincial polices regarding investment and development of western areas.

Article 2 preferential financial policies.

(I)For a newly built enterprise (excluding those renting workshop buildings or levying land) with annual gross tax amount over RMB 200,000 Yuan (available to the local government), it can enjoy the following since the day of commercial operation of the project: to get a reward equivalent to 60% of the amount available to the local government from the actual paid tax by the enterprise in the first year; and to get 50% and 40% of that amount for the second and third year respectively.

(II)For a new project which is cognized as a high-tech project by provincial or higher authorities, the enterprise is granted with exemption of business income tax according to relevant regulations and can get a reward equivalent to 60% the actual paid tax by the enterprise per year in the first three years.

(III)For a newly built tertiary industrial project (excluding real- estate industry) with gross tax amount (available to the local government) over 300,000 Yuan, the enterprise can get a reward equivalent to 30% of the amount available to the local government from the actual paid tax by the enterprise per year in the first three years.

(IV)The above rewards and support shall be only applied for the purpose of development and production of enterprises or expansion of reproduction.

(V)In case that they meet the above mentioned preferential policies, the

investors shall apply for' such favors to the Investment Promotion Service Center of the county which is in charge of approval and authorization of such application. After being approved, the enterprises can enjoy the above preferential policies implemented by the Financial Bureau of the county since March of next year or next season since one-year commercial operation of the enterprises.

Artlcle 3 preferential tax policies

Note: both domestically and foreign- funded enterprises in western areas which belong to encouraged industries by the government are entitled to pay only at the rate of fifteen percent (15%) of the enterprise income tax from the year 2001 to 2010.

All investors on industrial projects of Bama County are entitled to enjoy relevant national preferential tax policies regarding development of western areas. Any unsettled issues thereto shall be governed by relevant national and provincial policies.

(I)Preferential policies on income tax of domestically-funded enterprises