Article 58 of the Detailed Rules for the Implementation of the Law on Foreign-capital Enterprises stipulates that the profits of foreign-capital enterprises after paying income tax in accordance with the provisions of China tax law shall be drawn from reserve funds and employee incentive and welfare funds. The withdrawal ratio of the reserve fund shall not be less than 10% of the after-tax profit. When the accumulated withdrawal amount reaches 50% of the registered capital, it shall not be withdrawn. The proportion of employee incentive and welfare funds shall be determined by the foreign-funded enterprises themselves.