6. Notice of the State Council on Expanding the Scope of the Provisions of Preferential Tax Treatment for Foreign-invested Enterprises Engaged in Energy and Transportation Infrastructure Projects

Issued by the State Council

In order to encourage foreign investment in energy and transportation infrastructure and to spur development in China's inland provinces, the State Council issued this Notice on July 2, 1999 expanding the scope of the provisions on preferential tax treatment for foreign-invested enterprises ("FIEs") involved in energy and transportation infrastructure projects in accordance with the relevant provisions of the PRC Foreign-Invested Enterprise and Foreign Enterprise Income Tax Law.

The Notice states that, as of September 1, 1999, implementation of the provision of Article 73 of the Implementing Rules of the PRC Foreign-Invested Enterprise and Foreign Enterprise Income Tax Law stipulating that production-related FIEs engaged in PRC energy and transportation infrastructure projects may pay enterprise income tax at a reduced rate of 15 percent upon approval of the State Administration of Taxation, will be expanded to all regions of the PRC.