It is stipulated by the state that the enterprises with foreign investment are subject to the corporate income tax at the rate of 30%.
　　
　　The foreign-funded productive enterprises established in Ningbo proper and the areas within its jurisdiction shall pay income tax at the reduced rate of 24%. But income tax is 15% for the foreign invested enterprises in Ningbo Economic & Technical Development Zone, Daxie Island Development Zone, Ningbo Free Trade Zone, Ningbo High-tech Industry Park, the projects in energy, communications, port, wharf, and other projects encouraged by the state, and the projects with foreign investment exceeding US $ 30 million and with long period of investment recovery. The enterprises with an operational period of more than 10 years shall be exempted from income tax within the first two profit-making years, and can enjoy a half reduction of income tax from the third to the fifth year.
　　
　　Foreign invested enterprises which are engaged in Agriculture, forestry, animal husbandry, with an application filed by the enterprises and upon approval by the competent department for tax affairs under the State Council, may enjoy 15% to 30% reduction of the amount of income tax payable for a period of another ten years following the expiration of tax exemption and reduction as offered in the preceding paragraphs.
　　
　　In the years following the expiration of tax exemption or reduction, the export-oriented enterprises with an annual value of export products exceeding 70% of their total annual production value shall pay at the reduced rate of 12%. Yet the income tax is 10% for the enterprises in Ningbo Economic and Technical Development Zone, Daxie Island Development Zone, Ningbo Free Trade Zone and Ningbo High-tech Industry Park.
　　
　　Technologically advanced enterprises shall pay the income tax at the reduced rate of 12% for an extension of 3 years following the expiration of tax exemption or reduction. The enterprises in Ningbo Economic and Technical Development Zone, Daxie Island Development Zone and Ningbo Free Trade Zone shall pay the income tax at the reduced rate of 10% for an extension of 3 years.