View this page in: 简体中文版 Sep 2014, Issue 20
A new round of corporate income tax incentive for China's western region was formally unveiled
The Chinese Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued Caishui  No.58 in July 2011 to extend the tax incentives for China's western region from 1 January 2011 to 31 December 2020. As such, enterprises set up in the western region with major businesses falling within the Catalogue of Encouraged Industries in Western Region could be entitled to a reduced Corporate Income Tax (CIT) rate of 15%. Three years later, on 20 August 2014, the National Development and Reform Commission of the PRC finally promulgated the Catalogue of Encouraged Industries in Western Region (Western Catalogue). The Western Catalogue not only includes the encouraged industries under the three existing state-level catalogues but also includes some new encouraged industries for the respective western areas based on their local characteristics. The Western Catalogue will take effect from 1 October 2014.
The promulgation of the Western Catalogue is to implement the CIT incentive in the western region, which will be beneficial to enterprises as it provides more options for their investment. Enterprises that have enjoyed the CIT incentives pursuant to the previous catalogues before the release of the Western Catalogue, should pay attention to the transitional issues due to the discrepancies in the new and old versions of the catalogues. Moreover, enterprises interested in investing in the western region, should also review the Western Catalogue to optimise their investment decisions. Other issues of China Tax/Business News Flash
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