IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jan 2010 | Removal date: open ended
Still in force

Tax or social insurance relief

On 24 June 2011, the Chinese Ministry of Finance (MOF) and State Administration of Taxation (SAT) jointly released the Notice of Income Tax Incentives for Newly-established Enterprises in Distressed Areas of Xinjiang (Notice, CaiShui'2011' NO.53), with the purpose of promoting the leap-forward development and lasting political stability of Xinjiang.
 
Newly established enterprises (including enterprises with foreign investment, such as joint venture companies, wholly foreign owned enterprises) in Xinjiang Uyghur Autonomous Region distressed areas will enjoy favorable taxation treatment. Distressed areas in Xinjiang shall include three prefectures (Hetian) in the southern part of Xinjiang, other key counties and border counties of national poverty alleviation and development. Favorable taxation treatments are listed as follows:
 
l From 1 January 2010 to 31 December 2020, an enterprise which is newly established in distressed areas of Xinjiang belongs to the scope in the "Catalogue of Enterprise Income Tax Incentives for Industries Particularly Encouraged by Distressed Areas of Xinjiang for Development", from the first taxation year in which manufacturing or business operational revenue is earned, the said enterprise will enjoy two years' exemption period for income taxation.
l From the third year to the fifth year, income taxation rate on said enterprises will be at 12.5% percent, which is a 50% reduction of income taxation rate in accordance with China Enterprises Income Taxation Law.
 

AFFECTED COUNTRIES

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