Article 29　Foreign business entities may remit the profits they derive from enterprises established in the Hainan Special Zone on the strength of written resolutions on the distribution of foreign exchange profits adopted by their boards of directors or authoritative organizations equivalent to boards of directors. Such remittances shall be made from the enterprises' foreign exchange accounts and be exempt from the income tax on the remitted amounts. 

Article 30　Expatriate staff and workers of foreign investment enterprises may remit abroad their foreign exchange wages and other foreign exchange revenue after payment of tax according to law. The remittance procedures must be carried out by the banks with which such staff and workers have opened accounts, on the strength of the tax payment certificates issued by the tax authorities. 

Part six　Preferential treatment

Article 31　The income from production and business operations and other income derived by foreign investment enterprises from the Hainan Special Economic Zone will be subject to enterprise income tax at the rate of 15 percent. Among such enterprises: 

1. those engaged in the development and operation of infrastructure facilities such as ports, piers, airports, highways, railways, power stations, coal mines and water conservancy facilities, and enterprises engaged in the development of and business operations in connection with agriculture, with terms of operation of 15 years or more, must, commencing from the first profit-making year, be exempt from income tax from the first until the fifth years and be granted a 50 percent reduction of income tax from the sixth until the tenth year. Among such enterprises, those whose terms of operation are less than 15 years,must, commencing from the first profit-making year, be exempt from income tax in the first and second years and be granted a 50 percent reduction of income tax from the third until the fifth year; 

2. enterprises engaged in productive sectors such as industry and communications and transportation, with terms of operation of 10 years or more, must, commencing from the first profit-making year, be exempt from income tax in the first and second years and be granted a 50 percent reduction of income tax from the third until the fifth years. Among such enterprises, those that are confirmed by the Hainan Provincial People's Government as technologically advanced will be granted a 50 percent reduction of income tax from the sixth until the eighth years. Those enterprises with terms of operation less than 10 years must, commencing from the first profit-making year, be exempt from income tax in the first and second years; 

3. enterprises engaged in productive sectors such as industry and agriculture may pay income tax at the rate of 10 percent in any year after the expiry of the periods for exemption and reduction of enterprise income tax specified in the preceding two Items, provided that the value of products exported in that year is 70 percent or more of their output value in that year; 

4. enterprises engaged in service sectors, with a total amount of investment of more than 5 million dollars or its Renminbi equivalent and terms of operation of 10 years or more, must, commencing from the first profit-making year, be exempt from income tax in the first year and be granted a 50 percent reduction in income tax in the second and third years. Among such enterprises, those whose total amounts of investment or terms of operation do not comply with the above standards must, commencing from the first profit-making year, be exempt from income tax in the first year and be granted a 50 percent reduction in income tax in the second year;

5. enterprises engaged, with approval, in other industries, must, commencing from the fist profit-making year, be exempt from income tax in the first year and be granted a 50 percent reduction of income tax in the second year;

6. enterprises that use foreign investment to engage in infrastructure construction projects and to establish production enterprises in Sanya and Tongji Municipalities and in autonomous counties of minority ethnic groups, with terms of operation of 10 years or more, must, commencing from the first profit-making year, be exempt from income tax from the first until the tenth years and be granted a 50 percent reduction in income tax from the eleventh until the twentieth years. 

Article 32　The income from production and business operations and other income derived by foreign investment enterprises from the Hainan Special Economic Zone will be exempt from local income tax.