The policy of two exemptions and three reductions refers to the productive foreign-invested enterprises in the central and western regions, which have been operating for more than 10 years since the profit-making year, and can enjoy the treatment of being exempted from enterprise income tax for two years and collecting enterprise income tax by half for three years since the profit-making year.

Second, analyze the details

Foreign-invested enterprises encouraged by the state in the central and western regions can be extended for three years after the expiration of the five-year tax reduction or exemption period, and the income tax can be halved. Advanced technology enterprises established by foreign investment can enjoy three-year tax exemption and six-year enterprise income tax reduction and exemption. For export-oriented enterprises, in addition to the above-mentioned two exemptions and three reductions in income tax, as long as the annual export volume accounts for more than 70% of the total sales of the enterprise, you can enjoy the preferential treatment of halving the enterprise income tax. Foreign-invested enterprises that purchase domestic equipment within the total investment and fall within the scope of the import duty-free catalogue may, at their discretion, be credited with enterprise income tax.

3. What is the function of the policy of two exemptions and three reductions?

The functions of the two exemptions and three reductions policy are as follows:

1, which encourages foreign investors to invest in transforming traditional agriculture, developing modern agriculture and promoting agricultural industrialization;

2. First, encourage foreign investors to invest in infrastructure and basic industries such as transportation, energy and raw materials;

3. Encourage foreign investors to invest in electronic information, bioengineering, new materials, aerospace and other high-tech industries, and encourage foreign investors to set up R&D centers in China;

4. First, encourage foreign businessmen to use advanced and applicable technologies to transform traditional industries such as machinery, light industry and textiles, so as to upgrade the equipment industry;

5. First, encourage foreign investment in comprehensive utilization of resources and renewable resources, environmental protection projects and municipal projects;

6. Encourage foreign investors to invest in western advantageous industries in line with the strategy of developing the western region;

7. This is a permitted project, and all foreign-invested products are encouraged to export.