China News Service, April 28, according to the Ministry of Finance website, recently, the Ministry of Finance, the State Administration of Taxation, and the National Development and Reform Commission jointly issued an announcement on the continuation of the Western Development Enterprise Income Tax Policy. The announcement stated that from January 1, 2021 to December 31, 2030, corporate income tax will be levied at a reduced rate of 15% on encouraged industrial enterprises located in the western region. Encouragement industrial enterprises refer to enterprises whose main business is based on the industrial projects specified in the Catalogue of Encouraging Industries in the Western Region, and whose main business income accounts for more than 60% of the total business income.
The announcement mentioned that the "Catalogue of Encouraged Industries in the Western Region" was led by the Development and Reform Commission. If the catalog is revised within the execution period of this announcement, it will be implemented as the new version from the date of implementation of the revised version.
In the follow-up management, the tax authority cannot accurately determine whether the main business of the enterprise is a state-encouraged industrial project, and may request opinions from relevant departments such as development and reform. For those that do not meet the conditions stipulated in the tax preferential policies, the tax authorities shall deal with them in accordance with the Tax Collection Administration Law and relevant regulations. The specific measures shall be separately formulated by the provincial development and reform and taxation departments.
The announcement pointed out that the alleged western region includes Inner Mongolia Autonomous Region, Guangxi Zhuang Autonomous Region, Chongqing, Sichuan Province, Guizhou Province, Yunnan Province, Tibet Autonomous Region, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region, Xinjiang Uygur Autonomous Region and Xinjiang Production and Construction corps. Xiangxi Tujia and Miao Autonomous Prefecture in Hunan Province, Enshi Tujia and Miao Autonomous Prefecture in Hubei Province, Yanbian Korean Autonomous Prefecture in Jilin Province and Ganzhou City in Jiangxi Province can be implemented according to the corporate income tax policy in the western region.
The announcement will be implemented from January 1, 2021. "Notice of the State Administration of Taxation of the General Administration of Customs of the Ministry of Finance on Issues Relevant to the Implementation of the Taxation Policy for the Implementation of the Western Development Strategy" (Cai Shui [2011] No. 58) The corporate income tax policy stipulated in the "Notice of Issues" (Caishui [2013] No. 4) will cease to be implemented as of January 1, 2021.