YEDA has always been stressing on introducing industrial projects and giving priority to attracting foreign funds and exporting, devoting to develop high-tech industries.

High-tech industries and the ones listed in the encouraged foreign investment section by the State are encouraged in YEDA. The efforts will be concentrated on the following industries such as automobile, machinery, electronics, fine chemical, pharmacy and biological engineering, textile, garments, foodstuff processing, light industry, new materials and etc. are welcome, and as well as the third industry so as to form a complete industry advantage.

Project with large amount of investment are encouraged, while a principle of stressing on all the projects ranging large, middle to small has been taken to build a frame of large industry base. Giving priority to attract the transnational enterprises to establish the research and development institute and their manufacturing facilities.

Projects that are solely foreign owned or the foreign parties holding a major proportion are welcome, adhering to the way of cooperating with foreign parties, YEDA has been seeking the current practical way for business cooperation.

Exports are encouraged, while the marketing directions all depend on the investors' own decision.

Turnover Taxes

For foreign-funded projects, which fall into the section of encouraged foreign investment industries,, as well as the encouraged domestic invested projects, all equipment imported for the firms' own use, can qualify for the exemption from tariffs and value-added import duty. Furthermore, processing trade projects can qualify for the exemption from tariffs and value-added import duty against the equipment that are provided by foreign businessmen without fixed price.

The foreign-funded R&D centers can be exempted from paying tariffs and VAT (Value-added Tax) against the firms' own use imported equipment and supporting technology, components and spare parts.

For the existing foreign-funded enterprises, which have fallen into the section of encouraged foreign investment industries, the foreign funded R&D Center, advanced technology enterprises, the export oriented enterprises as well, expanding their business scales, can be exempted from paying import duty and VAT (Value-added Tax) against the imported equipment and supporting technology, components and spare parts by the firms' own use.

The foreign-funded enterprises can qualify for the withdraw of the paid tax or the exemption of paying VAT and consumption taxes against the exported goods produced by them or by the subcontractors depending on the related proofs submitted to the Taxation authority.

Goods that foreign-funded enterprises have imported by means of processing with materials supplied by overseas customers can be exempted from VAT and consumption tax to be levied in the course of importing. Whereas the processed products are exported, the contained VAT can be exempted against the charges and expenses claiming to the owner.

In case a foreign-funded enterprise, which falls into the section of encouraged foreign investment industries, purchases the domestic-made equipment within the total investment value, VAT against the domestic-made equipment will be totally refunded to the enterprise or furthermore, be used to balance the payable income tax.

Income Taxes

Foreign-funded enterprises may pay their income tax at a rate of 15%. In case the actual operation period reaches or exceeds 10 years, they will be exempted from income tax in the first two profit-making years and allowed a 50% reduction in the following three years.