Tax policies to boost western development to be extended

The Ministry of Finance announced on Tuesday it will extend the preferential corporate income tax policies for certain companies located in West China, maintaining a relatively lower tax rate until the end of 2030.

The corporate income tax rate will be at 15 percent for companies in some industries that the government encourages to develop, compared with 25 percent for general businesses in other regions, from Jan 1, 2021 to Dec 31, 2030, said a statement jointly issued by the Ministry of Finance, State Taxation Administration and the National Development and Reform Commission.

More companies in the western regions will enjoy the lower tax rate, as the threshold - the proportion of companies' income from their main business - is allowed to drop to 60 percent from 70 percent, according to the statement.

The measures aim to support the nation's Western Development Campaign, said the Ministry of Finance.

An executive meeting of the State Council on April 17 called for the extension of the preferential tax policies. The lower tax rate has already lasted for almost a decade since 2011.

The NDRC, the country's top economic planner, has developed a catalogue of encouraged industries. And the policies will cover six provinces, five autonomous regions and Chongqing municipality.