Nonnative businessmen who set up enterprises in Shaoguan are able to enjoy the national and provincial preferential policies of taxation. Foreign businessmen, who invest in production enterprises with the operating term over ten years, do not need to pay the enterprise income tax in the first and the second year counting from the year of profits making. From the third to the fifth year, the enterprise income tax will be levied by reducing to half. After the expiration of the term of tax exemption and reduction due, foreign invested enterprises that are engaged in agriculture, forestry, animal husbandry and that are located in under-developed or remote areas, are able to continue to enjoy the reduction of from 15% to 30% of the tax in the subsequent ten years through the application and approval by China National Taxation Administration.