Laiyang practises the relevant preferential polices for opening coastal cities. The manufacturing foreign-funded enterprises with a business period of over 10 years, enjoy tax reduction and pay income tax by 24%. For the first and the second year after they gain profits, they are free from income tax and from the third year to the fifth year, they only pay half of the income tax.

If the manufacturing foreign enterprises are involved in technology and knowledge concentrated projects, in projects whose investment exceeds 30 million dollars or in energy and transportation, they pay income tax by 15%. As to the enterprises that entered Laiyang Export-oriented Industrial Park three years before the park was set up, 100% of the added value to the local government will be returned for the first year. For the second year, 50% will be returned.

For the export-oriented foreign-funded enterprises, after the income tax-free period expires, they can be exempted from 50% of their income tax, if their yearly export value occupies over 70% of the whole year.
When the foreign investor uses the after-tax profits for reinvesting and increasing registered capital, or investing in other foreign-funded enterprises and the managing term of the foreign enterprises is no less than 5 years, 40% of the income tax for the profits used for reinvesting can get returned after the application of the enterprises is approved by the Tax Authority.

If the foreign investor directly invests or expands export-oriented enterprises or enterprises with advanced technology, all the income tax for the capital used for investment will get returned. The profits that the foreign investors get from foreign-funded enterprises are free from income tax whether the profits are remitted abroad or not.