Benefits Foreign Companies can have in western China
On the 27th of July, 2011, the Finance Department of the PRC issued a Notice on tax policy. In this Notice, the Chinese government gave foreign companies in Western China big tax cuts.
Which provinces have been defined as Western Regions?
According to the Notice, the Western Regions include Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shanxi, Gansu, Ningxia, Qinghai, Xinjiang, Neimeng and Guangxi. And the Xiangxi Tujia Miao Autonomous Prefecture in Hunan, Enshi Tujia and Miao Autonomous Prefecture in Hubei, Yanbian Korean Autonomous Prefecture in Jilin can also be treated as Western Regions.
What benefits can foreign companies have in Western China from this policy?
Foreign companies in industries where the Chinese government encourages foreign investment (This is regulated seperately in a Catalog which has not been issued yet.) can be relieved of custom duty for importing equipment for its own use.
From the 1st of Jan, 2011, to the 31st of Dec, 2020, the foreign companies only have to pay the government 15% income tax if the foreign companies are in an industries that the Chinese government encourages.
In 27th July, 2011, the Finance Department of PRC has issued a Notice on tax policy. In this notice, the Chinese government gave foreign companies in western China big tax cut.
Which provinces have been defined as Western Region?
According to the Notice, the Western Region includes Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shanxi, Gansu, Ningxia, Qinghai, Xinjiang, Neimeng and Guangxi. And the Xiangxi Tujia Miao Autonomous Prefecture in Hunan, Enshi Tujia and Miao Autonomous Prefecture in Hubei, Yanbian Korean Autonomous Prefecture in Jilin can also be treated as Western Region.
What benefits foreign companies can have in western China?
The foreign companies in the industries that Chinese government encourages the foreign investment (This is regulated separately in a Catalog which has not been issued yet.) can be relieved of costume duty for importing equipment for its own use.
And from 1st Jan ,2011 to 31st Dec, 2020,the foreign companies only have to pay the government 15%income tax only if the foreign companies are in the industries that Chinese government encourages.
|
