Article 2: These provisions shall apply to the foreign companies, companies of Hong Kong, Macao, and Taiwan, private enterprises, Sino-foreign joint ventures, Sino-foreign cooperative enterprises, foreign-owned enterprises within Inner Mongolia, and public undertakings.

Article 3: The foreign invested enterprises, engaging in the industries encouraged by regional government and with an operational period of more than ten years, are levied business income tax since the profit-making year and then returned within five years by local financial sector. The local government will take 25 percent of the value-added tax, which will be returned to the foreign invested enterprises within five years of production. For those foreign invested enterprises with less than ten years of operation, the returned business income tax and value-added tax will be paid back to local government.

Article 4: Inner Mongolia encourages the establishment of foreign invested enterprises involving large investment.

1) The foreign-funded productive and hi-tech enterprises established in the development zones, regional capital, and border cities with approval by the State Council shall be levied the same income tax as foreign-funded and foreign enterprises in China's coastal opening cities and development zones.

2) The foreign invested enterprises in service industries with an investment of US$5 million and operational period of more than ten year are levied tax according to the designated rate since its profit-making year and 50 percent of the tax will be returned to the foreign invested enterprises by local financial sectors.

Article 5: The hi-tech and export-oriented enterprises in the development zones of the region are levied taxes according to state stipulations and the part exceeding 15 percent will be returned by local financial sectors.

Article 6: Foreign investors of the foreign invested enterprises who reinvest their share of profits in their enterprises to expand production and establish export-oriented enterprises with an operational period of no less than five years will receive a refund of the paid income tax for the amount of reinvestment, subject to approval by local taxation authority. Their own or entrusted export may enjoy current state tax reimbursement. When their export volume accounts for more than 60 percent of the total production value, the portion exceeding 10 percent of the business income tax shall be first collected and then returned to the enterprises by local financial sectors.

Article 7: The foreign invested enterprises enjoy the local income tax exemption.

Article 8: The foreign invested enterprises in the fields of infrastructure construction including energy and transportation are encouraged to take the investment form of BOT, project financing and operational right transfer. The foreign investors in the fields of major transportation projects and renovation of old cities may expand the area of land development and service industry with relevant approval. The foreign invested enterprises can decide the price and charging criteria of their products and service with the approval of the regional financial and price-control departments. Foreign investors are encouraged to build high-level highways and the business income tax from the tolls will be first collected and then returned to foreign investors within eight years since the traffic opening day.

Article 9: Foreign investors are allowed to obtain the full or part of the SOEs' property rights through the forms of purchasing, shareholding, and incurred obligation with the approval of the governments above county level.

Article 10: Foreign-funded enterprises are entitled to the following preferential policies for the use of land:

1) The foreign invested enterprises are exempted from land use fee within construction stage.

2) Foreign investors running enterprises on its former location shall be exempt from land use fee within the first five years of operation, with an operational period over ten years.

3) With an operational period of over 15 years, the export-oriented enterprises, hi-tech enterprises, and enterprises in the fields of energy, transportation, infrastructure, exploitation of resources, and raw materials exempt from land use fee since its production for five years with an investment of US$0.5-1 million, seven years with an investment of US$1.01-3 million, ten years with an investment of US$3.01-5 million and 15 years with an investment of over US$5 million.

4) The foreign invested enterprises in the field of grassland improvement will develop animal husbandry in line with the regional plan after gaining right of land use.

5) Foreign investors in plantation and breeding industry may enjoy a long-standing land use right for at most 50 years with approval of authorized government.

6) Foreign investors in the fields of developing barren mountains and wasteland are encouraged to develop them into farm-oriented land and may use the land for 50 years with approval of authorized government. For those developing wasteland into construction use land, retention of land transfer fee will be first collected and returned to foreign investors by local financial sectors after the development reaches the contracted scale.

7) Foreign investors in the field of urbanization enjoy preferential policies accordingly.

Article 11: To attract investment for projects in remote areas in Inner Mongolia, foreign investors can carry out the projects in the development zones in the region after application. Relevant departments offer convenient service of related procedures including approval and tax transfer.

Article 12: The foreign invested enterprises are allowed to get loans preferentially for the turnover fund and other needed fund with approval of the banks of their deposits. The foreign invested enterprises can apply for loans in RMB on pledge of spot exchange, fixed assets, and other properties allowed by the state.

Article 13: The foreign invested enterprises shall be charged at the same rate as Chinese enterprises and Chinese citizens when getting service of operating expenses, and charges can be settled in RMB. Priority shall be given in ensuring the supply of water, electricity, heating, and telecom facilities needed in the production and operation of foreign-funded enterprises and foreign-funded public undertakings. The charges should be the same as those of Chinese enterprises.

Article 14: The export-oriented foreign invested enterprises, hi-tech foreign invested enterprises, and productive enterprises in the fields of energy, transportation, infrastructure, and raw materials shall be levied half of the fees for auxiliary urban infrastructure.

Article 15: Priority should be given to the foreign invested enterprises by local communications department in terms of production transportation.

Article 16: Foreign staff of the foreign invested enterprises shall have the same national treatment concerning accommodations, taking buses, and medical care in Inner Mongolia.

Article 17: The board of directors of the foreign invested enterprises is entitled to decide the salaries and bonus criteria according to relevant state regulations and reports to the labor department. The Foreign invested enterprises hire their employees by themselves and handle needed procedures with local labor department.

Article 18: The foreign invested enterprises enjoy relevant preferential polices of the state and Inner Mongolia Autonomous Region when hiring the laid-off workers from the SOEs.

Article 19: The procedures of examination and approval of the report submitted by the foreign invested enterprises cannot exceed 10 days. After the foreign invested enterprises go through all needed procedures, the autonomous region, the Foreign-Investment Office and Center of Project Approval will coordinate their work and one-stop service will be offered by industrial and commercial department, taxation sector, planning department, and departments of environmental protection, urban construction, land use, foreign trade, and finance.

Article 20: The lawful rights and interests of foreign-funded enterprises are protected by law. Relevant departments should observe the following regulations:

1) No inspection and punishment is allowed to be given to the foreign invested enterprises without the guideline of laws, rules, and regulation.

2) No departments or individuals except authorized organizations shall force banks to assign capital or freeze deposits of the foreign invested enterprises or seal up the legal property of the foreign invested enterprises.

3) The lawful rights and interests of foreign-funded enterprises allow no infringement.

Article 21: In case that policies formulated in the past to encourage foreign investment do not conform to the above policies, take these policies as the guideline.

Article 22: The policies shall be implemented on the day of promulgation. The Foreign-Investment Office under the People's Government of Inner Mongolia Autonomous Region is responsible for explaining the policies.