Article 16: Superior enterprises from other places are encouraged to engage in joint operation with enterprises in the autonomous region. Cooperative enterprises with outside enterprises' investment more than 25percent of the total investment and a term of cooperation more than ten years shall be exempt from the income tax for the portion of income exceeding the base quota due to the local revenues for three years, on the premise that the said base quota is guaranteed.

Article 17: Outside superior enterprises are encouraged to invest their tangible and intangible assets in transforming money-losing enterprises in the autonomous region and allowed to offset the red numbers of the money-losing enterprises with profits. They shall also be exempt from the business income tax for three years after the losses are remedied. Enterprises engaged in the transformation of the local enterprises with serious losses shall be entitled to a three-year refund of 25 percent of the value-added tax already paid, so as to offset the losses.

Article 18: Outside enterprises are welcome to annex and purchase enterprises in the autonomous region. The annexed and purchased enterprises that have a satisfactory operation shall be exempt from the income tax for the portion of income exceeding the base quota due to the local revenues for three years, on the premise that the said base quota is guaranteed. The annexed and purchased enterprises making meager profits or suffering short-term losses may enjoy exemption of the business income tax and a refund of 25 percent of the value-added tax for the portion exceeding the base quota due to the local revenues for four years, on the premise that the said base quota is guaranteed. The annexed and purchased enterprises with serious losses shall be treated according to Article 2,subject to approval by the government at corresponding level.

Article 19: Outside institutions and individuals are encouraged to operate under lease contract part or the whole of enterprises in the autonomous region. Institutions and individuals renting an enterprise in red numbers may enjoy a three-year exemption from the income tax after they turn around the money-losing enterprise. Those whose lease contract is more than three years shall be entitled to a nonrecurring refund of 50percent of the last year's rent upon examinations and approvals reveal that they have fulfilled or surpassed the operation target at the expiration of their contracts.

Article 20: Enterprises suffering from serious losses in the autonomous region may determine the value-preservation and value-addition norms of their properties and be voluntarily trusted to superior enterprises from other places for a certain period. The term of trusteeship is normally three to five years. During the period of trusteeship, the enterprises may enjoy exemption from the business income tax and the additional fees of circulation tax as stipulated by the government of the autonomous region, a refund of the full amount of urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, the tax for the use of land, and house tax as well a refund of 25 percent of the value-added tax exceeding the base quota due to the local revenues on the premise that the said base quota is guaranteed. The trustees may have the newly added profits created during the period of trusteeship should they fulfill the target of value-preservation. In that case, the trustees shall be regarded as already paying the tax.

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