Laws of the People's Republic of China

    Article 1  These Provisions are formulated, in accordance with the
Decision at the Third Session of the Sixth National People's Congress of
the People's Republic of China on Authorizing the State Council to Formulate
Interim Provisions or Regulations Concerning the Reform of the Economic
Structure and the Opening to the Outside World, to promote foreign economic
cooperation and technological exchange and to encourage foreign nationals to
come to work in China.

    Article 2  The foreign nationals listed below shall, in paying individual
income tax on the income from wages and salaries, enjoy a reduction by one
half of the rate that ought to be levied in accordance with the provisions
of the Individual Income Tax Law of the People's Republic of China:

    (1) foreign nationals who work for Chinese-foreign equity joint ventures,
Chinese-foreign contractual joint ventures and foreign-capital enterprises
established in China;

    (2) foreign nationals who work in the resident offices of foreign
companies, enterprises and other economic organizations in China; and

    (3) other foreign nationals who come to work in China.

    Article 3  Individual income tax payable on the income from wages and
salaries of overseas Chinese and compatriots from Hong Kong and Macao who
work in China shall be levied at a reduced rate by applying mutatis mutandis
the provisions of Article 2.

    Article 4  The Ministry of Finance shall be responsible for the
interpretation of these Provisions.

    Article 5  These Provisions shall become effective as of August 1, 1987.