♦ Designation as a Foreign Investment Zone (FIZ)
• The designation is conducted by the governors of the metropolitan cities or the provincial areas for foreign investors with at least a specified amount of investment and selecting the FIZ of preference.
♦ Conditions for designation
| Amount of Investment | Type of Investment | Action |
| More than US$30mil. | Manufacturing sector, high-technology business and industry-supporting service sector | Establishment of new factory |
| More than US$20mil. | Tourist hotels, aquatic tourism hotels, comprehensive recreational facilities, comprehensive resort facilities, international conference facilities. | Establishment of new facility |
| More than US$10mil. | Complex freight terminal business, setting up delivery centers, operation of harbor facilities, fulfillment business within the hinterland, operating airport facilities, delivery business within the airport area, establishment of social overhead facilities | Establishment of new facility |
| More than US$5mil. | High-technology business, R&D activities for industrial technology service businesses – More than 10 permanent employees with at least three years experience and a Master?s degree. | Establishment of new facility or extending existing facility |
♦ Benefits of Foreign Investment Zones
| Category | Initial time of reckoning | Period and rate of reduction |
| National tax Corporate tax, Income tax | Year of initial profit | 100% reduction for 7 (5) years, 50% reduction thereafter for 3 (2) years |
| Local tax Acquisition tax, registration tax, property tax, comprehensive land tax | Date of starting the business | 100% reduction for 5 years, 50% reduction thereafter for 3 (2) years |
| Customs, special excise tax, value-added tax | Date of investment notification | 100% reduction within 3 years |
1. National tax and local tax reductions only refer to the relevant amount of the foreign
investor’s shares
2. The numbers in parentheses are applicable from 2005
