The State Administration of Taxation of China recently issued a circular on introducing a preferential policy to give a three years' income tax reduction to foreign-invested enterprises in central and western China.

The circular points out that according to stipulations made for foreign-invested enterprises in central and western China a 15% reduction of income taxes will be introduced upon completion of three years' implementation of the current taxation policy promulgated. Shanxi, Inner Mongolia, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hebei, Hunan, Chongqing, Sichuan, Guizhou, Yunan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang, altogether 19 provinces and cities, are to be categorically included according to the policy.