How is the deduction of taxes for foreign-invested companies calculated?

The deduction of taxes is calculated as follows:

• Corporate tax and tax for profits made from dividends
– (Calculated tax amount x tax base (subject to deduction) / total tax base) x rate of
foreign investment x (deduction rate of 100% or 50%)

• Local tax
– Calculated tax x rate of foreign investment x (tax deduction rate of 100% or 50%)

• Customs, special excise tax, value-added tax
– The tax depends on the import of capital goods (with conditions);
– For high-technology sector and foreign investment zones, 100% deduction for
import within three years of the date of FDI notification;
– For other foreign-invested companies, only deduction for customs.