All foreign-funded enterprises in BDA shall pay business income tax, value-added tax, transactions tax, consumption tax, urban housing property tax, vehicle and vessel license tax, contract tax, etc. All the import and export products shall pay customs duty, value-added tax and consumption tax according to customs regulation. In addition, income tax for patent charge, dividend, interests, rent, and other incomes paid to foreigners should be withheld. All the foreign and Chinese staff in foreign-funded enterprises are required to pay individual income tax.

Income Tax for Foreign-funded Enterprises
All the foreign-funded enterprises are required to pay income tax in accordance with the Income Tax Law of the People's Republic of China Concerning Foreign-Funded Enterprises. The business income tax rate of foreign-funded manufacturing enterprises in BDA is a reduced rate of 15%. The foreign-funded manufacturing enterprises who have an operation period of 10 years or above are exempted from business income tax in the first two years from its profit-making year and pay tax half-cut(a rate of 7.5%) in the following three years. The hi-tech advanced enterprises may apply to the financial authority for the refund of half-cut income tax. Those hi-tech advanced enterprise who proves to be advanced enterprises after tax holiday are entitled to pay income tax at a rate of 10% in three following years. After the tax holiday the export enterprises whose annual export value exceeds 70% of the total production value of that year are entitled to pay income tax at a rate of 10%.
The foreign-funded manufacturing enterprises in BDA are exempted from local income tax for five years and pay half-cut of tax in following five years. New and high-tech enterprises are exempted from local income tax.
All foreign investors as well as investors from Hong Kong, Macro and Taiwan regions who have invested the profit earned from BDA into their own enterprises or opening new enterprises in BDA with an operation period of no less than five years are entitled to the refund of 40% of the total income tax for the investment.

Customs Duty and Import Value-added Tax
For those foreign-funded projects encouraged in the Catalog of Foreign-funded Industries, all the imported self-use equipment and instruments less than total investment value are exempted from customs duty and import value-added tax except those on the list of Catalog of Imported Products Without Tax Exemption Concerning Foreign-funded Projects. For those domestic projects in line with Catalog of State-encouraged Key Industries, Products and Technologies, all the imported self-use equipment and instruments less than total investment value are exempted from customs duty and import value-added tax except the products listed in the Catalog of Imported Products Without Tax Exemption Concerning Domestic Projects.