Industrial and commercial consolidated taxes, income tax and customs tax are reduced or remitted to varying degrees depending on the amount invested by the foreign businessperson, type of product produced and length of investment. Earnings from a production-type enterprise set up by a foreign businessperson in Tibet are subject to a 10 percent business earnings tax beginning the first year the enterprise shows a profit; the enterprise is exempt from local taxes on earnings. Production-type enterprises working in energy, transportation, agriculture or animal husbandry with a period of operations in excess of 10 years are exempt from business earnings taxes for the first five years after they show a profit; business earnings taxes are then paid at a 50 percent discount for the subsequent three years. Enterprises engaging in processing agricultural or animal by-products or other processing or the manufacture of traditional handicrafts and tourist commodities with a period of operation in excess of 10 years are exempted from taxes on earnings from the first four years after showing a profit; taxes on earnings then receive a 50 percent discount for the next two years. Tourism-related enterprises capitalized with an investment of over US$5 million or RMB 30 million yuan with a period of operation in excess of 10 years are exempted from taxes on earnings for three years after showing a profit, receiving a 50 percent discount on taxes on earnings the following year. Enterprises that do not meet the above-described standards are exempted from taxes on earnings for the first two years of operation and receive a 50 percent discount on taxes on earnings for their third year.

Foreign business entities that do not maintain a physical presence in Tibet but receive stock dividends, interest, rents, proprietary right use fees or other revenues from Tibet pay a 7 percent tax on earnings, unless legally exempt. If a foreign businessperson reinvests profits earned from a business in Tibet in another operation in Tibet or use profits to expand production for a period no less than five years, he will be returned all his tax already paid on earnings from his investment. He pays all other taxes than those on earnings as other enterprises of the same type in Tibet do. Foreign business people are permitted to use RMB in place of foreign exchange for tax payments. When a foreign businessperson remits his profits or when a foreign staff member remits his personal income outside of China he will be exempted from income tax on the remitted amount. Any enterprise with exports revenue accounting for more than 50 percent of sales revenue in a given year will receive a 50 percent discount on taxes on earnings for that year, in addition to the above exemptions and reduced rates.

That portion of a foreign business entity's investment that goes for machinery, equipment, building materials, and miscellaneous parts and components used in the enterprise is exempt from import taxes and the industrial and commercial consolidated tax. Likewise, reasonable quantities of imported office appliances, household items and vehicles for the foreign businessperson's own use are exempt from import taxes and the industrial and commercial consolidated tax; such articles do not require an import permit, only customs inspection. Imported raw materials, accessory materials, packing materials, miscellaneous parts and components used in manufacturing or processing products exclusively for export are exempt from import taxes and the industrial and commercial consolidated tax. If only a portion of such goods produced are for export, that portion of imported materials and parts used for export production is exempt from import taxes and the industrial and commercial consolidated tax, while the remaining portion used in goods sold in China receives a 50 percent discount on import taxes and the industrial and commercial consolidated tax.