Article 1: in order to accelerate the development of the global-market-oriented economy of Ordos, and to attract foreign investments, these provisions are here by developed.

    Article 2: these provisions are applicable to the Sino-foreign joint ventures, Sino-Foreign cooperative joint ventures and foreign-funded companies (hereinafter abbreviated as foreign investment enterprises) and other non-profit business incorporated and developed in Ordos by foreign companies and enterprises as well as other economic organizations and individuals.

    Article 3: in terms of a production-oriented foreign investment enterprise with more than 10 years of operating period, it is exempted from enterprise income tax in the first year and second year and exempted from half of enterprise income tax from the third to fifth year starting from the year when it becomes profitable. From the sixth year starting from the year when it becomes profitable to the expiry of the operating period, it pays income tax pursuant to the income tax rate stipulated by the country. Local financial department will refund all the income tax beyond the 22%.

    Article 4: the establishment of a foreign investment enterprise with large amount of investments is encouraged. (I) if the industry involved is the one encouraged for development under the industry policy of China, foreign investments are more than USD 3 million and the operating period exceeds 10 years, upon the approval of the financial and taxation departments, the foreign investment enterprise is entitled to related preferential taxation pursuant to the standard applied in an opening-up city. (2) if foreign investments reach USD 5 million, the operating period exceeds 10 years, and the foreign investment enterprise engages in service industry, it pays tax in accordance with the stipulated tax rate starting from the year when it becomes profitable, and the local financial department will refund 50％ of the tax it paid.

    Article 5: if foreign investment enterprises will re-invest its realized profits (inclusive of income taxes discounted, exempted and refunded) in the production of export commodities and expansion of export commodity resources, the enterprise can file an application to the financial and taxation departments and will be exempted, upon approval, from enterprise income taxes; when the produced commodities are exported, zero tax rate is applied to value-added taxes; in case the commodities are dutiable consumables, the enterprise is exempted from excise. After the period during which the foreign investment enterprise is entitled to exemption of taxes on its export products, when the export production value of the enterprise reaches more than 70% of the total value of the products produced in the same year, it is exempted from half of income taxes.