Foreign investors who invest on Dehong Prefecture's tourism will enjoy the following preferential tax policies:

1. Circulation Tax: Foreign investors enjoy a five-year exemption from the Urban Construction Tax and Education Surtax that accompanies the Value Added Tax, Consumption Tax, and Business Tax.

2. According to "The Regulation of Yunnan Province on Encouraging Foreign Investment," foreign investors who invest in Dehong Prefecture are exempted from the three-percent local income tax.

3. For foreign investors in the manufacturing business, those who have run over ten years are exempted from business income taxes for the first and second year, and will collect a forty-percent business income tax from the third year to the fifth year, beginning from the year that they make profit. If the enterprise still has obvious difficulties running the business after the five-year period, it can still enjoy a fifteen-to-thirty-percent tax-reduction for ten years, if approved by the tax administrative department.

4. The profits foreign investors made from foreign investment enterprises are exempted from income taxes. The profits gained (after tax) are exempted from the ten-percent remit tax when they are being remitted abroad.

5. Foreign investors who used the profits to re-invest directly on the enterprises, to gain registered capital, or to invest on other foreign invested enterprises, will enjoy a forty-percent tax refund from the re-invested profit, if they have run the business for over five years, and are approved by the tax administrative department. If they have run for less than five years, the tax refund must be re-paid.