Policy Document

Contact us

Your present position:Home > Policy and Regulations > Policy Document >

Circular on the Issues Concerning Related Tax Policies for the In-depth Implementation of the West Development Strategy

Departments (Bureaus) of finance of provinces, autonomous regions and municipalities with independent planning status, the State Administration of Taxation, local taxation bureaus, the bureau of finance of Xinjiang Production and Construction Corps, branch of the General Administration of Customs in Guangdong and the customs directly under the State Council:

For the purpose of implementing and carrying out the spirit of the Party Central Committee and the State Council on deeply implementing the West Development strategy and further supporting the West Development, the circular on relevant taxation policies is hereby notified as follows:
Article 1 The imported self-used equipment within the total investment that belongs to the projects in the domestic-invested encouragement industries, foreign-invested encouragement industries and competitive industries shall be exempt from tariff within the scope as stipulated in the policy. 
Article 2 The enterprises established in the west that belongs to the encouragement industry shall be levied on the business income tax according to the 15% of tax rate during the period of January 1, 2011 to December 31, 2020. 
The enterprises of the above-mentioned encouragement industry refers to the ones that take the industrial items as stipulated in the Catalogue for the Encouragement Industries in the West as the main business and its main business income accounts for above 70% of the total revenues of the enterprise, with the Catalogue for the Encouragement Industries in the West shall be separately released. 
Article 3 The enterprises in the west that have newly enjoyed the preference before December 31, 2010 on the “two exemptions and 50% reduction in Three Years” of the business income tax in transportation, electricity, water conservancy, postal service and broadcast television according to Clause 3 of Article 2 of the Circular of the Ministry of Finance, the General Administration of Taxation and the General Administration of Customs on the Preferential Policy for the West Development (Cai Shui [2001] No. 202) shall continuously enjoy the preference until expiration. 
Article 4 The west region as mentioned in the Circular includes Chongqing municipality, Sichuan province, Guizhou province, Yunnan province, Tibet Autonomous Region, Shaanxi province, Gansu province, Ningxia Hui Autonomous Region, Qinghai province, Xinjiang Uygur Autonomous Region, Xinjiang Production and Construction Corps, Inner Mongolia Autonomous Region and Guangxi Zhuang Autonomous Region. Xiangxi Tujia and Miao Autonomous Prefecture of Hunan province, Enshi Tujia and Mia Autonomous Prefecture of Hubei province and Yanbian Korean Autonomous Prefecture of Jilin province shall be subject to the taxation policy for the west region. 
Article 5 The Circular herein shall take effect as of January 1, 2011. And the Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on the Issues Concerning the Tax Preferential Policies for the West Development (Cai Shui [2001] No. 202), the Circular of the State Administration of Taxation on Implementing the Specific Implementing Opinions for the Taxation Policies for the West Development (Guo Shui Fa [2002] No. 47), the Circular of the Ministry of Finance and the State Administration of Taxation on the Alteration Application Catalogue for the Preferential Taxation Policies for the West Development (Cai Shui [2006] No. 165), and the Circular of the Ministry of Finance and the State Administration of Taxation on Incorporating the Business of the Tourist Attractions and Scenic Spots in the West into the Preferential Taxation Policies for the West Development (Cai Shui [2007] No. 65 shall be annulled as of January 1, 2011. 
                             Ministry of Finance
General Administration of Customs
   State Administration of Taxation 
                                      July 27, 2011

Organizer:Shaanxi International Investment Promotion Center

Add:7F,Shangde Building,No.155,shangde road,Xi'an,China; Pc:710004

Tel:0086-29-85393074 / 85215684; E-MAIL:kefu@shaanxiinvestment.com