Tax Incentive for Infrastructure Investment

Income derived by an enterprise from the investment in, and the operation of, public infrastructure projects eligible for key support from the State as prescribed in the Catalogue of Public Infrastructure Projects Eligible for Preferential Corporate Income Tax Treatment shall be eligible for a tax exemption for the first year to the third year, and a 50% reduction in CIT for the fourth year to the sixth year, starting from the year in which the project first generates operating income.

   Enterprises that are engaged, under contract, in the operation or construction of projects referred to in this Article, or are engaged in the construction of projects referred to in this Article for self-use, shall not be entitled to the preferential CIT treatment prescribed under this Article.

   For projects that are eligible for tax reductions/exemptions under this Article, where the projects are transferred during the period of such tax reductions/exemptions, the transferees of such projects shall become eligible, on the date of the transfer, for the preferential treatment during the remaining period of such tax reductions/ exemptions. Where the projects are transferred after the period for the tax reductions/exemptions has expired, the transferee of such projects shall not enjoy the above tax reductions/exemptions with respect to the same projects.